The EU wants to mobilise up to €300bn of spending on infrastructure and other projects for a Global Gateway plan to respond to China’s influential Belt and Road Initiative.
The European Commission’s draft proposals, seen by the Financial Times, suggest that the EU’s ambitions will rely heavily on leveraging private sector spending as well as public investment, while co-opting spending from EU member states.
The €300bn, to be invested by 2027, would include resources from the EU, member states, European financial institutions and national development banks. It would also “seek to mobilise private sector finance and expertise and support access to sustainable finance”, according to the document. The commission will set out the plans on Wednesday.
Western nations are seeking to bolster their involvement in projects in developing countries and counter the BRI, under which Beijing has extended its reach and influence globally.
The Global Gateway project is not explicitly pitched as an alternative to China’s projects, but the draft stresses it will provide a “values-based” option and an “ethical approach”.
“By offering a positive choice for global infrastructure development, Global Gateway will invest in international stability and co-operation and demonstrate how democratic values offer certainty and fairness, sustainability for partners, and long-term benefits for people around the world,” the draft document says.
The BRI has become an important strategic tool for Beijing since its launch in 2013, as dozens of countries sign up to China-backed projects such as railways, bridges and ports. This and similar initiatives have raised concerns in European capitals that the EU is far behind when it comes to developing nation infrastructure.
However, some BRI recipient countries have complained that the initiative’s debt terms are onerous and some projects have deficient environmental or building standards.
The EU programme would prioritise investment in digitalisation, health, climate, energy and transport as well as education and research.
The draft says the EU plans to boost its budget spending on infrastructure outside the bloc, but the plans also hinge on the use of “innovative financial instruments to crowd-in private capital”, including guarantees to cut the risks of private sector investments.
About €135bn of investments will be enabled by guarantees from the EU’s new European Fund for Sustainable Development Plus programme. The Luxembourg-based European Investment Bank would also be involved.
Grant financing of up to €18bn will come from other EU programmes.
Half of the targeted spending of up to €300bn will come from European financial and development finance institutions, according to the draft.
The EU plan is designed to dovetail with work endorsed by the G7 summit held in the UK this year, including US President Joe Biden’s Build Back Better World.
It’s worth it to rival China. I hope it’s possible to do it without fucking over the countries they invest in.
That’s not enough it needs to be in the trillions , all the infrastructure China has build in Africa is to extract its recourses and leave them forever indebted .
Good luck EU. You managed to drag out even the construction of an ordinary gas pipeline from Russia for 7 years, relentlessly mud-slinging Russia. Guess why African, Asian countries see the EU and the US only as exploiters and oppressors.
And wouldn’t surprise me if the majority of that was spent in France or Germany…
Now the world turn to socialism ?
It’s great to see the demise of China
If u don’t know what to do, build roads. Works every time (well, 20% of the time:D)
China is way ahead! They had their cultural revolution last century. Europe seems to be gargling a strange combination of social purgative & soporific for the conscience in real time,now.
Unpopular opinion: How about fixing the Euro first, over 5% inflation in Germany and the ECB is still pumping cash into the market.
The problem is, and that’s a known fact, companies in the Eu in the construction files tend to stretch the time work takes to make more money, while the Chinese are supervised by their Gouvernement and are pressured into fast and efficient working. This won’t do shit, if the loopholes for all of this stuff are not fixed and current bosses are not fired or replaced.
Let me guess, it’s another wealth transfer from the north to the south? €300bn more to be expropriated by officials of corrupt EU countries. €300bn more in public spending during a time when the economies are overheating and inflation is high. Brilliant.
In other words, EU will send private companies there and those firms will drag a project on and on with ever higher costs. Both the US and EU become shitty in this business and even in their own countries are having delay after delay when building something bigger than a bike lane.
Chinese companies are working the help Chinese govt. interests. They are an extension of the govt. In the EU and US is the other way around. We, as states, serve the interests of private companies. If we do not change this, Chinese will eat us alive everywhere.
If you think that’s a good idea, watch Empire of Dust and replace Chinese money by “your tax money”. At least some of the embezzled money will end in the pockets of European officials.
What the fuck is that top comment chain
good, but i feel like this will be a waste of time
I have always defended that we should be investing in Africa. You solve the migration issue by giving them the tools to build better lives in Africa. The way i see it, it’s not just about the money either, the EU should fund and staff trade schools in Africa. Important practical subjects like Farming, Metalworking, Woodworking, Animal Husbandry, Water Management, i’m not talking about rocket science either, just basic trades a civilized society needs at it’s base. I would argue this would be more expensive than just sending aid every year in the short term, but in the long term it would generate incredible human development.
let’s give money to multinationals so they can get sweet african resources and make eu citizens pay for it. brilliant.
Why not use that money to wean the EU off of fossil fuel imports from Russia?
19 comments
The EU wants to mobilise up to €300bn of spending on infrastructure and other projects for a Global Gateway plan to respond to China’s influential Belt and Road Initiative.
The European Commission’s draft proposals, seen by the Financial Times, suggest that the EU’s ambitions will rely heavily on leveraging private sector spending as well as public investment, while co-opting spending from EU member states.
The €300bn, to be invested by 2027, would include resources from the EU, member states, European financial institutions and national development banks. It would also “seek to mobilise private sector finance and expertise and support access to sustainable finance”, according to the document. The commission will set out the plans on Wednesday.
Western nations are seeking to bolster their involvement in projects in developing countries and counter the BRI, under which Beijing has extended its reach and influence globally.
The Global Gateway project is not explicitly pitched as an alternative to China’s projects, but the draft stresses it will provide a “values-based” option and an “ethical approach”.
“By offering a positive choice for global infrastructure development, Global Gateway will invest in international stability and co-operation and demonstrate how democratic values offer certainty and fairness, sustainability for partners, and long-term benefits for people around the world,” the draft document says.
The BRI has become an important strategic tool for Beijing since its launch in 2013, as dozens of countries sign up to China-backed projects such as railways, bridges and ports. This and similar initiatives have raised concerns in European capitals that the EU is far behind when it comes to developing nation infrastructure.
However, some BRI recipient countries have complained that the initiative’s debt terms are onerous and some projects have deficient environmental or building standards.
The EU programme would prioritise investment in digitalisation, health, climate, energy and transport as well as education and research.
The draft says the EU plans to boost its budget spending on infrastructure outside the bloc, but the plans also hinge on the use of “innovative financial instruments to crowd-in private capital”, including guarantees to cut the risks of private sector investments.
About €135bn of investments will be enabled by guarantees from the EU’s new European Fund for Sustainable Development Plus programme. The Luxembourg-based European Investment Bank would also be involved.
Grant financing of up to €18bn will come from other EU programmes.
Half of the targeted spending of up to €300bn will come from European financial and development finance institutions, according to the draft.
The EU plan is designed to dovetail with work endorsed by the G7 summit held in the UK this year, including US President Joe Biden’s Build Back Better World.
It’s worth it to rival China. I hope it’s possible to do it without fucking over the countries they invest in.
That’s not enough it needs to be in the trillions , all the infrastructure China has build in Africa is to extract its recourses and leave them forever indebted .
Good luck EU. You managed to drag out even the construction of an ordinary gas pipeline from Russia for 7 years, relentlessly mud-slinging Russia. Guess why African, Asian countries see the EU and the US only as exploiters and oppressors.
And wouldn’t surprise me if the majority of that was spent in France or Germany…
Now the world turn to socialism ?
It’s great to see the demise of China
If u don’t know what to do, build roads. Works every time (well, 20% of the time:D)
China is way ahead! They had their cultural revolution last century. Europe seems to be gargling a strange combination of social purgative & soporific for the conscience in real time,now.
Unpopular opinion: How about fixing the Euro first, over 5% inflation in Germany and the ECB is still pumping cash into the market.
The problem is, and that’s a known fact, companies in the Eu in the construction files tend to stretch the time work takes to make more money, while the Chinese are supervised by their Gouvernement and are pressured into fast and efficient working. This won’t do shit, if the loopholes for all of this stuff are not fixed and current bosses are not fired or replaced.
Let me guess, it’s another wealth transfer from the north to the south? €300bn more to be expropriated by officials of corrupt EU countries. €300bn more in public spending during a time when the economies are overheating and inflation is high. Brilliant.
In other words, EU will send private companies there and those firms will drag a project on and on with ever higher costs. Both the US and EU become shitty in this business and even in their own countries are having delay after delay when building something bigger than a bike lane.
Chinese companies are working the help Chinese govt. interests. They are an extension of the govt. In the EU and US is the other way around. We, as states, serve the interests of private companies. If we do not change this, Chinese will eat us alive everywhere.
If you think that’s a good idea, watch Empire of Dust and replace Chinese money by “your tax money”. At least some of the embezzled money will end in the pockets of European officials.
What the fuck is that top comment chain
good, but i feel like this will be a waste of time
I have always defended that we should be investing in Africa. You solve the migration issue by giving them the tools to build better lives in Africa. The way i see it, it’s not just about the money either, the EU should fund and staff trade schools in Africa. Important practical subjects like Farming, Metalworking, Woodworking, Animal Husbandry, Water Management, i’m not talking about rocket science either, just basic trades a civilized society needs at it’s base. I would argue this would be more expensive than just sending aid every year in the short term, but in the long term it would generate incredible human development.
let’s give money to multinationals so they can get sweet african resources and make eu citizens pay for it. brilliant.
Why not use that money to wean the EU off of fossil fuel imports from Russia?