Eurozone Planning $110 billion Techs ‘Catch-Up’ Fund and Trade Tariffs

August 22, 2019 | Private Equity

Fearing the threat from tech giants in the US and China, the EU plans to bulk up its own “high-potential European companies” through a sovereign wealth fund

Details on the European Future Fund are now public.

According to media reports, which quoted an internal EU document, plans are afoot to set up the European Future Fund. Total fund capital will be €100 billion ($110 billion). The fund includes a mandate to invest in promising European corporations and bring them up to speed on the tech front.

The aggressive, two-pronged plan will also counter President Donald Trump’s trade policies.

The looming threat from tech giants

According to the Financial Times, the rationale for such heavy-handed action was the threat from the growing size and reach of tech giants. These threats included U.S. firms like Google, Apple, Facebook, and Amazon, and Chinese ones like Baidu, Alibaba, and Tencent.

“Europe has no such companies,” the document read according to the FT. “This presents a risk to growth, jobs, and to Europe’s influence in key strategic sectors.”

Goals of the European Future Fund

The 173-page blueprint also seeks to impose unilateral tariffs on the United States, in response to Trump’s trade wars.

Taking objection to government subsidies to Chinese companies, which give them an unfair competitive edge, the plan suggests blocking them from participating in tenders in Europe.

The European Commission officials are suggesting that president-elect Ursula von der Leyen take the lead on these proposals.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”

Latest Alternative Investment News

Alternative Investments: Activists Will Get Busy Soon, Says Tim Melvin

As companies become more undervalued as the economy slows because of shutdown orders across the United States, I expect that the pace of activist activity to increase. We should see…
Private Equity: Active Triage Happening at KKR and Other Funds
April 2, 2020     News, Private Equity

KKR & Co (NYSE: KKR) has shelved a plan to sell Singapore-based Goodpack, a Singapore based shipping containers, and logistics services.  They had bids for the company that was said…
FinTech: Kyash Closes $45M Series C Funding
April 2, 2020     FinTech, News

Kyash, a Japanese fintech startup aspiring to be a leading challenger bank, gained $45 million in a Series C funding. The round was co-led by Greenspring Associates and Goodwater Capital,…
Liquid Alternatives: Investors Shovelled $677B Into Money Market Funds In Scramble to Safety
April 2, 2020     Liquid Alternatives, News

Investors set up a record-breaking first quarter this year for inflows into U.S. money market funds. These funds gained from the massive risk-off sentiment that prevailed as investors realized the…

Scroll to Top