Fosse Financial - Germany exempt EU from investment limits law

PRLog (Press Release) – Apr 13, 2008 – Sources say that Fosse Financial recently reported that German legislation that would allow the government to limit foreign investments in strategic sectors to 25 percent of a company's capital would not apply to investors based in the 27-member European Union.

A spokesperson for Fosse Financial apparently stated that the EU commission had voiced concern about the proposed law, which would violate the right to free circulation of capital within the union.

A recent report by Fosse Financial revealed that several German ministries are currently examining the plan, which is to be presented to a council of ministers within the coming months.

It targets in particular sovereign wealth funds owned by countries such as Russia, China and the oil-rich Gulf states.

A top analyst at Fosse Financial reportedly commented that several European countries had expressed concern over the possible loss of control of strategic sectors like energy, telecommunications and defense to foreign interests.