The EU is continuing its drive to become more global with the launch, on 1 December, of its new connectivity strategy called the “Global Gateway”. For the President of the European Commission, Ursula von der Leyen, “the Global Gateway strategy is a model that can show how Europe can build more resilient connections in the world”.
The aim is for the Commission to show the range of infrastructure investments it intends to support around the world, “in an increasingly complex global landscape”. While the joint communication does not mention China, Ms von der Leyen told the press that third countries need different and better offers than the one proposed by Beijing.
“Countries made their experience with Chinese investment. And they need better and different offers. (...) They know we are transparent, they know it is accompanied by good governance, they know there will be no unsustainable debt left over, they know this is with the country itself inclusively that we design the project (...) and we bring on top of that the private sector with us, a private sector that in such a way does not exist in China. So it is a true alternative”, she explained.
For his part, the High Representative of the Union for Foreign Affairs and Security Policy, Josep Borrell, said that with this Global Gateway, “we are reaffirming our vision of boosting a network of connections, which must be based on internationally accepted standards, rules and regulations in order to provide a level-playing field”.
In concrete terms, the Global Gateway should support investments in five sectors: digital, energy and climate, transport, health and education and research. For example, it will finance physical infrastructure such as fiber optic cables, transport corridors, transmission lines for energy, etc. For this, the EU intends to invest up to €300 billion until 2027 (including €60 billion already announced in the framework of investment plans with the countries of the Western Balkans and the Mediterranean).
In its communication, the Commission insists that these infrastructure projects should support the principles of democracy, good governance, transparency, equality with partners, green transition, security, and support the private sector.
“We want to show that this strategy can meet local needs, tackle global challenges, while benefiting the EU”, said Ms von der Leyen.
Financing
The funds to finance this infrastructure will come, on the one hand, from grants from the Neighbourhood, Development and International Cooperation Instrument (NDICI), amounting to €18 billion. On the other hand, the EU will provide up to €21 billion in guarantees, which can generate €135 billion in investments, through the European Fund for Sustainable Development (EFSD+). Finally, European financial institutions such as the European Bank for Reconstruction and Development (EBRD) or the European Investment Bank (EIB), as well as those of the Member States, will support €145 billion of investments.
With this initiative, the Commission builds on some existing European programmes and brings together the different funding opportunities that can contribute to the Global Gateway objectives. According to one EU official, it is essential to “fill some of the gaps in current investment to meet the need for green and clean infrastructure”.
See the strategy: https://bit.ly/3pAtPcv (Original version in French by Léa Marchal with Camille-Cerise Gessant)