The European Union wants to create an investment fund for $ 100 billion The EU authorities have developed an aggressive plan, the goal of which is to counter both the actions of President Donald Trump in global trade and American […]
The European Union wants to create an investment fund for $ 100 billion
The EU authorities have developed an aggressive plan, the goal of which is to counter both the actions of President Donald Trump in global trade and American tech giants, including Google, Apple, Amazon, Microsoft and Facebook..
According to a document obtained by POLITICO, European Commission officials are pushing their president-elect, Ursula von der Leyen, to create a European Future Fund, which would invest more than $ 100 billion in stakes in high-potential European companies..
Europe wants to compete with American and Chinese tech giants it has lagged behind for decades.
Plan sponsors advocate for Europe to show more resolve in Trump’s trade war, saying the EU should unilaterally impose tariffs on the US.
The largest US tech companies with market caps that sometimes exceed $ 1 trillion now have a disproportionately larger market cap than major European tech companies such as the music service Spotify.
In addition to the largest US tech companies, the plan also points to Chinese companies Baidu, Alibaba and Tencent, which Europe must compete with.. «There are no such companies in Europe», – noted in their document.
The proposed new EU technology investment fund is a shift from market incentives to direct market intervention.
EU hopes to emulate past successes, such as the development and implementation of the global GSM mobile standard, which has fueled the growth of companies such as Nokia.
The new fund will use EU budget money currently earmarked for venture capital, research and regional development funding.