National policies towards sovereign wealth funds in Europe: a comparison of France, Germany and Italy

Although France, Germany and Italy are often seen as relatively closed to foreign equity investment, a closer analysis shows that they have often accepted or even welcomed sovereign wealth fund (SWF) investments. In all three countries, there were debates about how to respond to SWFs. But despite initial concerns, there has been considerable support for allowing and attracting SWFs. All three countries have passed legislation regulating foreign equity investment, but the provisions remain limited, as much directed against private equity investors as against SWFs, and have almost never been used. Moreover, SWF investments in individual companies have almost always been welcomed and sometimes actively sought by firm managers and policy makers, including in sensitive and high-profile firms.