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The EU wants to raise € 300bn for construction and other infrastructure Global Gateway is planning to respond to China’s powerful Belt and Road Initiative.
The views of the European Commission, observed by the Financial Times, show that EU interests are more dependent on the use of corporate and public funds, while consolidating funding from EU member states.
€ 300bn, to be set by 2027, will include grants from the EU, member states, European financial institutions and development banks. It will also seek to “raise funds for business and professional teams and support access to sustainable funding”, according to the document. The council will launch plans on Wednesday.
Western nations are searching encouraging participation in the development of developing countries and addressing the BRI, while Beijing has expanded its reach and attraction around the world.
The Global Gateway project is not directly targeted as an alternative route to China, but the document emphasizes that it will provide “adoptive” and “ethical” methods.
“By making a positive decision on global infrastructure development, Global Gateway will establish global stability and harmony and demonstrate how democratic principles provide assurance and justice, stability for friends, and long-term benefits for people around the world,” the statement said. .
BRI has been an important tool in Beijing since its inception in 2013, with many countries signing Chinese-sponsored projects such as railways, bridges and ports. These and other similar concerns have raised concerns in European governments that the EU is far behind in terms of developing international infrastructure.
However, some countries that have received BRI have complained that the loans they have made for the program are complex and that some projects do not have environmental regulations or infrastructure.
The EU program will prioritize digital finance, health, climate, energy and transportation as well as education and research.
The report says the EU plans to boost its spending on foreign currency, but the plans also rely on the use of “secret financial instruments”, as well as guarantees to reduce the risks of business ventures.
Approximately € 135bn of funding will be funded by grants from the European Fund for Sustainable Development Plus EU program. A Luxembourg-based bank from European Investment Bank will also participate.
Funding of up to € 18bn comes from other EU programs.
Half of the money spent up to € 300bn comes from European financial and development agencies, according to the report.
The EU framework is designed to complement the work approved by the G7 summit held in the UK this year, including US President Joe Biden Build Back Better World.
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