European Union officials are looking at setting up a €100 billion wealth fund that would allow for the development of "European champions" that could compete against large corporations from China and the United States, Politico reported on Thursday.
The proposal for a so-called European Future Fund appeared in a 173-page wishlist put together by European Commission officials, which included other items such as installing beehives on public buildings and placing additional restrictions on social media. However, the document's focus was on creating more companies that could compete against giants such as Apple, Facebook, Alibaba and Baidu, with officials noting that Europe currently does not have any such companies. The fund would utilize money from the EU's budget to raise at least €100 billion in public and private funding, which would be invested directly in equity.
The document also explored ways to counter US President Donald Trump's trade threats, such as through a new framework termed the "Enforcement Regulation" that would impose unilateral tariffs on the US. In addition. the trade defense measures would target Chinese companies taking part in European tenders and penalize them for the level of subsidies that they receive from the government in Beijing. Officials want to put the proposals onto the agenda of newly-elected EC President Ursula von der Leyen, whose mandate begins on November 1.
