Here’s a mighty exercise in self-delusion. The EC is hoping to persuade the owners of gigantic sovereign wealth funds to sign up to a code of conduct. El Presidente Barroso has pronounced:
“We cannot allow non-European funds to be run in an opaque manner or used as an implement of geo-political strategy.
"We will not propose European legislation”, he graciously declares: but he's not to be trifled with: “we reserve the right to do so if we cannot achieve transparency through voluntary means"
This 'we' who *cannot allow* would be the ‘we’ who have been rushing round soliciting sovereign dosh to bail out our failing banks, I take it. Presumably Barroso imagines the Chinese are awaiting the EC’s proposals with trepidation, and that when he tells them to behave like
At C@W we have been writing about the Sovereigns since the days when everyone else was worrying about private equity. Let’s get the basics straight. If ‘we’ continue to dismantle our economies and pour trillions of money into the hands of the nations in question, then there is going to be a shift in the balance of power. We don’t like it ? Fair enough, but let’s not embarrass ourselves with this posturing.
Opaque ? Tool of geo-political strategy ? Yes indeed: they ain’t called ‘sovereign’ for nothing !