SWF Radar NicolasSarkozy

Thomson Reuters reports that, “France’s strategic fund aimed at protecting domestic industries through the financial markets crisis will be set up in three weeks’ time, President Nicolas Sarkozy said Thursday.”

It adds that, “The Caisse des Depots et Consignations, a publicly owned savings bank at the heart of the state’s financial operations in the economy, will manage the fund.”

The Oxford International Review SWF blog writes that, “Ironically, SWFs, the very state-controlled entities that gave some hope that more nations would become inextricably invested in the world economy, are now being touted as the tool of choice for a new brand of economic isolationism.”

Thomson Merger News, in an editorial, writes (free subscription required) of Nicolas Sarkozy’s plan to set up a French SWF that, “If anything it resembles yet another wheeze to get around ever stricter EU rules to combat protectionist behaviour.”

The Times writes that, “President Sarkozy is set for a showdown with Angela Merkel today after infuriating the German Chancellor with the launch of a €100 billion (£80 billion) French sovereign investment fund that he exhorted other European governments to copy.”

Bloomberg reports that, “President Nicolas Sarkozy said France will create a sovereign wealth fund to ‘massively’ aid national businesses after the global stock market rout left some companies in need of capital and at risk of takeover.”

It adds that, “The French fund will be managed by state-controlled lender Caisse des Depots et Consignations and will raise funds in the market for its investments, Sarkozy said. The fund will seek to earn capital gains from taking ‘temporary stakes’ in companies, he said.”

Thomson Reuters reports that, “Germany poured cold water on French President Nicolas Sarkozy’s proposal that Europe should have its own sovereign wealth funds to take stakes in companies stricken by the global finance crisis.”

iT ADDS THAT, “Economy Minister Michael Glos, leading a chorus of opposition from Berlin, said in a newspaper interview to be published on Wednesday that Sarkozy’s plan ran counter to the system that has worked well in Europe for decades.”

Bloomberg reports that, “French President Nicolas Sarkozy said the European Union member countries should have their own sovereign wealth funds and that they should coordinate action to invest in the bloc’s industry.”

Thomson Financial reports that, “French President Nicolas Sarkozy said he intends to make state-owned bank Caisse des Depots et Consignations (CDC) into a sovereign fund.”