EU plans 300 billion euros of global infrastructure spending to compete with China

The EU hopes to mobilize up to 300 billion euros in expenditures for infrastructure and other projects Global gateway The plan is to respond to China’s influential “One Belt One Road” initiative.

The draft proposal of the European Commission seen by the British “Financial Times” shows that the European Union’s ambitions will depend to a large extent on the use of private sector expenditures and public investment, while absorbing the expenditures of EU member states.

The 300 billion euros invested by 2027 will include resources from the European Union, member states, European financial institutions and China Development Bank. The document stated that it will also “seek to mobilize private sector funding and expertise and support access to sustainable financing.” The committee will make a plan on Wednesday.

Western countries are seek Strengthen their participation in projects in developing countries and respond to the “Belt and Road” initiative, under which Beijing has expanded its influence on a global scale.

The Global Gateway Project is not explicitly used as an alternative to the Chinese project, but the draft emphasizes that it will provide “value-based” choices and “ethical methods.”

“By providing active options for global infrastructure development, Global Gateway will invest in international stability and cooperation, and demonstrate how democratic values ??can provide partners with certainty and fairness, sustainability, and long-term benefits for people around the world,” the draft The document says.

Since its launch in 2013, the “Belt and Road” initiative has become an important strategic tool for Beijing, and dozens of countries have signed projects such as railways, bridges, and ports supported by China. This and similar measures have raised concerns among European capitals that the EU is far behind in infrastructure in developing countries.

However, some “Belt and Road” recipient countries complained about the heavy debt clause of the initiative and insufficient environmental or construction standards for some projects.

The EU plans to prioritize investment in digitalization, health, climate, energy and transportation, and education and research.

The draft stated that the EU plans to increase budgetary expenditures on infrastructure outside the EU, but the plan also depends on the use of “innovative financial tools to attract private capital,” including guarantees to reduce the risk of private sector investment.

Approximately 135 billion euros of investment will be guaranteed by the European Union’s new European Sustainable Development Fund Plus program. The European Investment Bank, headquartered in Luxembourg, will also participate.

Up to 18 billion euros in grant financing will come from other EU programs.

According to the draft, half of the target expenditure of up to 300 billion euros will come from European financial and development financial institutions.

The EU plan aims to coincide with the work approved by the G7 summit in the UK this year, including the “Rebuilding a Better World” by US President Joe Biden.

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