The new European investment plan is called Global Gateway which will put 300 billion on the plate by 2027 to finance services and infrastructures in various countries around the world. The European Commission unveiled it today, speaking of a strategy aimed at “transforming the EU into a most effective geopolitical actor”, but above all to counter the excessive power of China in key sectors such as digital and energy.
The word "alternative" was mentioned several times during the presentation of the piano, and although the president of the EU Commission, Ursula von der Leyen, has never openly mentioned China, no one had any doubts in considering the Global Gateway a response to the Chinese Belt and Road initiative, the "new Silk Road" launched in 2013 by Beijing to improve its trade links with countries in Eurasia. The project in Brussels' intentions will instead strengthen the Build Back Better, the almost two trillion dollar plan approved on November 21 by the US House on a proposal from the Biden administration.
THE PRINCIPLES OF THE GLOBAL GATEWAY
Through the Global Gateway, the European Commission aims to mobilize 300 billion investments worldwide, from 2021 to 2027, in five key sectors: digital, environment and energy, transport, health, research and education. Instead, there are three goals: to strengthen the supply chains of the European Union recently tested by the shortage of chips and raw materials, to improve the trade links of the bloc by transforming the EU into an attractive partner from an economic point of view and, as mentioned , counter the growing international presence of China, providing an alternative whose two strengths are transparency and sustainability.
“The Global Gateway foresees an increase in investments that promote democratic values and high standards, good governance and transparency, equal partnerships, green and clean infrastructure, safe and that mobilize private sector investment”, explains the Commission in a note.
WHAT THE GLOBAL GATEWAY PROVIDES FOR
The 300 billion euros made available by the plan will come in part (135 billion) from the European Fund for Sustainable Development, while another 145 billion will be allocated by the European financial institutions in the form of guarantees to be used to multiply the funding. 18 billion will instead be made available in the form of grants from the EU budget.
“The EU will offer financing on fair and favorable terms in order to limit the risk of debt difficulties”, the Commission reassured. "States need better and different offers (compared to the Chinese initiative)", added Commission President Ursula von der Leyen at a press conference, underlining that it is "a real alternative", she added.
“Between 2013 and 2018, the European Union was the largest provider of development aid in the world. Our contribution to development is equal to that of China, but the modalities are different: Beijing lends, we disburse loans, as well as promoting private investment”, added the Commissioner for International Partnerships Jutta Urpilainen.
INVESTMENTS
The plan "will focus on physical infrastructure - such as fiber optic cables, clean transport corridors, green energy transmission lines - on the strengthening of digital, transport and energy networks", explains the Commission. Global Gateway, continues Brussels, "will also create a favorable environment for project execution, thanks to attractive and positive investment and trade conditions for companies, regulatory convergence, standardisation, integration of supply chains and financial services".
From a geographical point of view, although individual projects have not yet been presented, Brussels has mentioned three strategic areas: Africa, where the goal is to finance health and renewable energy sources, the Balkans and the Mediterranean, where we will focus mainly on transport.
