European Union civil servants have drafted a plan for a €100 billion sovereign wealth fund aimed at financing European companies in technology and other strategic sectors in a bid to compete with major foreign rivals, the Financial Times reported, citing an internal EU document.
The proposed European Future Fund should prioritize long-term holdings in "EU-based corporates in strategically important sectors," the draft plan said.
The EU document warns against the threat posed by foreign digital giants on EU industries and innovation, including Google LLC, Apple Inc. and Alibaba Group Holding Ltd.
"Europe has no such companies," the FT quoted the draft document as saying. "This presents a risk to growth, jobs, and to Europe's influence in key strategic sectors."
The wealth fund proposal is a result of "internal brainstorming" and is still not part of the formal policy program of incoming European Commission President Ursula von der Leyen, according to the report.
