Global Gateway: EU’s $340 billion answer to China’s Belt and Road initiative
The goal of the EU program – known as the Global Gateway – is to help strengthen global recovery by mobilizing investment in digital, clean energy and transport networks, as well as boosting the health system. , education and research worldwide. According to World Bank estimates, low- and middle-income countries faced a $2.7 trillion infrastructure investment gap before the pandemic.
“With the Global Gateway, we want to create strong and sustainable links, independent, between Europe and the world, and build a new future for young people,” said Jutta Urpilainen, EU Commissioner on international partnership, said in a statement on Wednesday.
European Commission President Ursula von der Leyen said the plan offered a “real alternative” to China’s global infrastructure program, which has been accused of burdening some countries with huge debts since it started in 2013.
Von der Leyen said that countries “need better and different financial offers” and that the EU plan – to invest over the next six years – would not create “unsustainable levels of debt” in the countries. partner.
“They know we’re transparent, they know that comes with good governance,” von der Leyen said.
The European Alternative to China’s Belt and Road will be financed by a mixture of €18 billion ($20 billion) in grant aid and €280 billion ($317 billion) in investments from other countries. member states, their development banks, the EU’s private sector and financial authorities, including the European Investment Bank, the European Commission said in a statement.
The commission also said it was considering creating a new credit facility for European companies sell to markets outside the EU, which will help them compete with businesses that receive huge government subsidies.
This is how the plan breaks down.
Digitizing
The European Union will invest in fiber optic cables between countries, satellite communications and cloud infrastructure to further facilitate global cooperation, data sharing and AI development. It will provide an additional 15 million € (17 million dollars) for a program that aims to extend work above an altitude of 35,000 km (22,000 mi)–speed, velocity fiber optic network to the rest of Latin America.
Clean energy
The bloc plans to integrate its energy systems, transition to renewable energy and work with other countries to promote renewable hydrogen production. It will also work to remove barriers to international hydrogen trade. It has committed €2.4 billion ($2.7 billion) in funding for sub-Saharan Africa and €1 billion ($1.2 billion) for North Africa to promote renewable energy production and energy efficiency. quantity.
Transport
In perhaps the most direct challenge to the Chinese initiative, the European Union will also invest in transport infrastructure – railways, roads, ports, airports and border crossings. – to help countries develop and diversify their supply chains. It said it would provide an additional €4.6 billion ($5.2 billion) for sustainable transport links, including the establishment of a trans-Mediterranean network connecting North African countries with the bloc.
Health
In response to the pandemic, the EU’s new plan aims to help countries develop local vaccine production capacities and diversify their pharmaceutical supply chains. It did not set specific funding targets, but made Africa a priority, and said it would work with the Africa Centers for Disease Control and Prevention.
Education and research
The European Union wants to invest more in education globally, including by expanding online learning. Through a talent partnership, it will provide a pathway for young professionals to move to Europe for work or training, and inject an additional €400 million ($453 million) into the study exchange program. Erasmus + his featured episode.