The FINANCIAL, Georgia
Aug 23 2008

Merkel opens up new Russian front
23/08/2008 18:36

The FINANCIAL – German Chancellor Angela Merkel is calling for a
summit of Georgia’s neighbours in the volatile Caucasus region
following the recent conflict with Russia, a government spokesman said
Saturday, Framce Press reported.

Russia itself was not on the list of countries envisaged by Merkel —
which included Armenia, Azerbaijan and Turkmenistan — but no country
should be excluded from participation, the spokesman said.

"It’s up to the French presidency of the EU to decide if this
conference will take place, as well as when and who will be invited,"
he said.

According to the latest edition of German weekly Der Spiegel, which
will be published on Monday, Merkel proposed the summit idea to French
President Nicolas Sarkozy, whose country holds the European Union’s
rotating presidency. Berlin reckons the theme of the summit should be
"reconstruction and stability in Georgia and the region," the German
government spokesman said.

THE German Cabinet, headed by Angela Merkel, last Friday approved a
draft law aimed at fending off undesired foreign takeovers, setting
limits on investment that reflect concern over the growing strength of
sovereign wealth funds, Irish Independent reported.

Germany said last year that it will follow the US and France in
thwarting investments that jeopardise the security of key industries
such as telecoms and ports.

Sovereign wealth funds controlled by countries including Russia and
China manage ?¬2.5 trillion, according to the IMF. That sum may
be as much as ?¬12 trillion by 2015, it says.

"The majority of foreign investments won’t be affected,” Economy
Minister Michael Glos said. "Germany remains open to foreign
investments.” The draft law gives a commission, headed by the Economy
Ministry, power to block bids for 25pc or more of a target company by
funds or companies whose majority owners are not EU nationals.