What should Europe do about sovereign wealth funds?

Several EU governments have become alarmed about sovereign wealth funds (SWFs). Germany, for example, is thinking of preventing such funds from buying local companies in sensitive sectors. The European Commission is considering how it should respond: should it outlaw such defences, or establish them at EU level? With trillions of dollars now accumulated in SWFs and calls for protection mounting, the EU needs to ensure that any measures taken in response to SWFs do not threaten the openness of its single market.