EU to spend up to 300 billion euros to boost sustainable links around world

Global Gateway Initiative to counter China’s Belt and Road:

The European Commission (EC) and the High Representative for Foreign Affairs and Security Policy, yesterday, announced the launch of the Global Gateway, 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, according to the EU, stands 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.

The EC said on its official website: “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.

“Through a Team Europe approach, Global Gateway will bring together the EU, Member States with their financial and development institutions, including 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.

“Global Gateway draws on the new financial tools in the EU multi-annual financial framework 2021-2027. The Neighbourhood, Development and International Cooperation Instrument (NDICI)-Global Europe, the Instrument for Pre-Accession Assistance (IPA) III, as well as Interreg, InvestEU and the EU research and innovation programme Horizon Europe; all allow the EU to leverage public and private investments in priority areas, including connectivity. In particular, the European Fund for Sustainable Development+ (EFSD+), the financial arm of NDICI-Global Europe 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 will offer not only solid financial conditions for partners, bringing grants, favourable loans, and budgetary guarantees to de-risk investments and improve debt sustainability – but also promote the highest environmental, social and strategic management standards. The EU will provide technical assistance to partners to enhance their capacity to prepare credible projects ensuring value for money in infrastructure.

Global Gateway will invest in international stability and cooperation and demonstrate how democratic values offer certainty and fairness for investors, sustainability for partners and long-term benefits for people around the world.

This is Europe’s contribution to narrowing the global investment gap, that requires a concerted effort in line with the June 2021 commitment of the G7 Leaders to launch a values-driven, high-standard, and transparent infrastructure partnership to meet global infrastructure development needs.

Global Gateway builds on the achievements of the 2018 EU-Asia Connectivity Strategy, the recently concluded Connectivity Partnerships with Japan and India, as well as the Economic and Investment Plans for the Western Balkans, the Eastern Partnership, and the Southern Neighbourhood. It is fully aligned with the UN’s 2030 Agenda and its Sustainable Development Goals (SDGs) and the Paris Agreement.

Global Gateway projects will be developed and delivered through Team Europe Initiatives. The EU institutions, Member States, and European financial institutions will work together with European businesses as well as governments, civil society and the private sector in partner countries.

Under the overall steer of the President of the Commission, the High Representative/Vice-President of the Commission, the Commissioners for International Partnerships and Neighbourhood and Enlargement will take forward the implementation of Global Gateway, and promote coordination among all actors.