On February 27, the European Commission proposed a common EU approach to increasing the transparency, predictability and accountability of sovereign wealth funds. The common approach is intended to strengthen the European Union’s voice in international discussions on establishing a code of conduct which would include standards in areas of transparency and governance, with the overall aim of maintaining an open investment environment.

The proposals are based on five principles: (i) commitment to an open investment environment both in the EU and elsewhere; (ii) support of multilateral work in international organizations such as the International Monetary Fund (IMF) and the Organization for Economic Co-operation and Development (OECD); (iii) use of existing instruments at EU and individual Member State level; (iv) respect of EU obligations and international commitments; and (v) proportionality and transparency.