EU says wealth funds welcome but must be more open

By Huw Jones

BRUSSELS (Reuters) - State-owned sovereign wealth funds armed with billions of dollars are welcome to invest in the European Union but should be more open about their motives and methods, the bloc's executive arm said on Wednesday.

Some 30 countries have set up funds to invest about $2.5 trillion (1.25 trillion pounds) built on commodity and energy exports, which on some estimates could grow to $12 trillion by 2015.

But EU states such as Germany and France worry funds from Russia, China and elsewhere may invest in Europe to influence strategic companies like utilities rather than for purely commercial reasons.

This worry is compounded by difficulties EU firms can face in investing in countries like Russia and China.

"Sovereign wealth fund countries must acknowledge that their growing weight in global financial markets brings responsibilities," EU Economic and Monetary Affairs Commissioner Joaquin Almunia told a news conference.

The European Commission put forward principles it wants included in a voluntary global code of conduct for SWFs being drawn up by the International Monetary Fund by October.

Internal Market Commissioner Charlie McCreevy told the news conference that the funds had been "positive and long-term investors."

"There is no, as far as I am aware, no instance of sovereign wealth funds acting in any manner other than responsibly up until now," McCreevy said. "Some people are afraid of what might happen in the future."