You are here: Home » International » News » Economy
Business Standard

EU to lay out $46 billion infrastructure plan to counter China

The EU's "Global Gateway" strategy will focus on digital, transport, energy and trade projects

Topics
China | European Union | infrastructure projects

Bloomberg 

Photo: Reuters
The EU will offer 40 billion euros in guarantees from its European Fund for Sustainable Development Plus mechanism, in addition to several billion euros in grants (Photo: Reuters)

The will unveil next week its strategy for more than 40 billion euros ($45.9 billion) in technology and infrastructure spending that is a key part of the West’s response to China’s Belt and Road program.

The EU’s “Global Gateway” strategy will focus on digital, transport, energy and trade projects, according to a draft seen by Bloomberg. The plan is aimed at boosting Europe’s interests and competitiveness around the world, while also promoting sustainable environmental standards and values such as democracy, human rights and the rule of law.

The strategy follows a US-led agreement reached during July’s Group of Seven summit where leaders agreed to launch a global infrastructure initiative called Build Back Better World to help narrow the gaping infrastructure need in the developing world and provide a green rival to China’s ambitious initiatives.

The Global Gateway plan will “provide an umbrella brand for the already extensive EU investment in infrastructure worldwide,” the document says, to allow better coordination between member states, expand cooperation with and regional partners and make funding go further.

The EU will offer 40 billion euros in guarantees from its European Fund for Sustainable Development Plus mechanism, in addition to several billion euros in grants, according to the draft. The document also notes that under the EU’s current budget cycle through 2027, investments in connectivity are expected to rise.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 12 2021. 01:45 IST
RECOMMENDED FOR YOU
.