EU unveils €300 billion ‘Global Gateway’ plan
- The European Commission has proposed a plan to invest € 300 billion (US $ 340 billion) in infrastructure, digital and climate projects worldwide by 2027 as a better alternative to the China Belt and Road Initiative (BRI).
- China launched the Belt and Road Project in 2013 to strengthen trade relations with other parts of the world and has invested heavily in infrastructure development in dozens of countries around the world.
About Global Gateway
- The Global Gateway is the new European strategy to boost smart, clean and secure links in digital, energy and transport and strengthen health, education and research systems across the world.
- It aims for sustainable and trusted connections that work for people and the planet, to tackle the most pressing global challenges, from climate change and protecting the environment, to improving health security and boosting competitiveness and global supply chains.
- Global Gateway aims to mobilise up to €300 billion in investments between 2021 and 2027 to underpin a lasting global recovery, taking into account our partners needs and EU’s own interests.
- It is Europe’s offer for connecting the world with investments and partnerships. Countries need investment to create jobs, skills and better living conditions for people.
- Global Gateway is about increasing investments promoting democratic values and high standards, good governance and transparency, equal partnerships, green and clean, secure infrastructures and that catalyse private sector investment.
Implementation of Plan
- Through a Team Europe approach, Global Gateway will bring together the EU, Member States with their financial and development institutions.
- This will include the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD) and seek to mobilise the private sector in order to leverage investments for a transformational impact.
- The EU delegations around the world, working with Team Europe on the ground, will play a key role to identify and coordinate Global Gateway projects in partner countries.
- It will be under the overall control of the president of the Commission, the high representative/vice-president of the Commission, the commissioners for international partnerships and neighbourhood.
- The enlargement will take forward the implementation of Global Gateway, and promote coordination among all actors.
- Global Gateway draws on the new financial tools in the EU multi-annual financial framework 2021-2027 that allow the EU to leverage public and private investments in priority areas, including connectivity.
- The European Fund for Sustainable Development+ (EFSD+), the financial arm of Global Europe: Neighbourhood, Development and International Cooperation Instrument (NDICI) will make available up to €135 billion for guaranteed investments for infrastructure projects between 2021 and 2027.
- Up to €18 billion will be made available in grant funding from the EU budget and European financial and development finance institutions have up to €145 billion in planned investment volumes.
- The EU is also exploring the possibility of establishing a European Export Credit Facility to complement the existing export credit arrangements at Member State level and increase the EU’s overall firepower in this area.
- The Facility would help ensure a greater level playing field for EU businesses in third country markets, where they increasingly have to compete with foreign competitors that receive large support from their governments, and thus facilitate their participation in infrastructure projects.
- Global Gateway and the US initiative Build Back Better World will mutually reinforce each other.