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Germany denies mulling state fund to fend off unwanted foreign investment

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By Reuters

BERLIN (Reuters) – Germany is not mulling the creation of a sovereign wealth fund to buy company stakes, the economy ministry said on Wednesday after a newspaper reported that officials had floated the idea to beat predatory Chinese and Gulf investors to German assets.

“There are no considerations or plans in the federal government to establish a ‘sovereign wealth fund’ with the aim of financing government stakes in companies,” an economy ministry spokeswoman said when asked to comment on the report by Frankfurter Allgemeine Zeitung (FAZ).

“Germany is open to foreign direct investment and supports the freedom of international capital flows,” the spokeswoman said.

(Reporting by Rene Wagner; Writing by Michael Nienaber; Editing by Michelle Martin)