Several German leaders reject Sarkozy's economic proposals
BERLIN, Oct 21 (Reuters) - Germany poured cold water on French President Nicolas Sarkozy's proposal that Europe should have its own sovereign wealth funds to take stakes in companies stricken by the global finance crisis.
Economy Minister Michael Glos, leading a chorus of opposition from Berlin, said in a newspaper interview to be published on Wednesday that Sarkozy's plan ran counter to the system that has worked well in Europe for decades.
"The French proposal...contradicts all the principles of success that we've had in our economic policies," Glos told the Frankfurter Allgemeine Zeitung newspaper. "Germany will remain open for capital from around the world."
Sarkozy said earlier on Tuesday Europe should have its own sovereign wealth funds to take stakes in companies stricken by the global financial crisis and protect them from "predators".
"In the world, there are sovereign wealth funds with considerable funds," the French leader said. "Should we not think then during this period of crisis about the utility of having sovereign funds ourselves that would make it possible to defend national interests and European interests?"
Glos rejected that view.
"State intervention in the banking and insurance sector is essential to prevent a collapse of the financial system and to protect growth and jobs," Glos added.
Eckart von Klaeden, a foreign policy expert in parliament in Chancellor Angela Merkel's Christian Democrats, called Sarkozy's suggestion self-indulgent.
"There would even be a lack of necessary capital," von Klaeden told the newspaper. He added that Sarkozy was failing to see that prosperity in Germany and in Europe hinges on the readiness of foreign companies to invest in Germany and Europe.
Ruprecht Polenz, another CDU leader in parliament, also rejected the proposal.
"Sarkozy is putting lousy French wine through a new hose but the quality of the wine isn't getting any better as a result," Polenz said. "We shouldn't draw the wrong conclusions from the financial crisis by nationalising the economy.
"Protectionist measures 80 years ago only exacerbated the world's economic crisis," Polenz said. (Writing by Erik Kirschbaum; Editing by Ron Askew)
