The Potential for a Sovereign Wealth Fund to Acquire and Exert Influence Over the Eurozone

Thomas Junghanns and Jan Körnert ()
Additional contact information
Thomas Junghanns: Universität Greifswald
Jan Körnert: Universität Greifswald

Intereconomics: Review of European Economic Policy, 2022, vol. 57, issue 3, 179-186

Abstract: Abstract The financial clout of the world’s sovereign wealth funds (SWFs) is massive, and many of these are controlled by authoritarian regimes. It cannot be ruled out that these funds might acquire shareholdings in banks that play key roles in other countries. This paper studies the extent to which SWFs have the potential to use shareholdings in critical banks as mechanisms to exert influence on other countries’ banking, economic and political systems. We identify banks holding critical positions within the eurozone countries that might be exploited in the pursuit of power and determine whether SWFs could acquire simple or qualified majorities in these banks and whether they would have sufficient assets to enter into such investments. The paper concludes that three authoritarian regimes — China, Abu Dhabi and Saudi Arabia — each have a SWF which would need to invest not even half of its assets to acquire such sweeping influence.

Keywords: F63; F64; N10 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10272-022-1045-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:intere:v:57:y:2022:i:3:d:10.1007_s10272-022-1045-6

Ordering information: This journal article can be ordered from
http://link.springer.de/orders.htm

DOI: 10.1007/s10272-022-1045-6

Access Statistics for this article

Intereconomics: Review of European Economic Policy is currently edited by Christian Breuer

More articles in Intereconomics: Review of European Economic Policy from Springer, ZBW - Leibniz Information Centre for Economics, Centre for European Policy Studies (CEPS)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().