WASHINGTON, Oct 19: European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said on Friday that he and US Treasury Secretary Henry Paulson agreed on a need for a common approach and guidelines for sovereign wealth funds, including a code of conduct.

Almunia, speaking to reporters after a meeting with Paulson, said they agreed that guidelines were needed for the funds’ management, governance and transparency of investment criteria.

“We share these views,” Almunia said. “We need to continue to deepen our dialogue, but we have the same approach to these issues.” Almunia said he and Paulson agreed sovereign wealth funds, which are investment funds controlled by foreign governments, are important for the functioning of the global economy but guidelines are needed “so as not to create concerns about the national interests of the recipient countries.” G-7 finance ministers are expected to discuss the sovereign wealth fund issue more intensively at a dinner on Friday evening, which will include representatives from a number of countries that have been actively investing in foreign assets.

Those countries include China, Saudi Arabia, Singapore and Russia.

Almunia also said it was important for all of the industrial countries that are expected to be recipients of such investments to take a common approach to guidelines for such funds.

Asked whether the two officials discussed the weak value of the US dollar, Almunia said “not today.” Asked if he was concerned about the strong value of the Euro, Almunia said, “Well, as usual.”—Reuters