BRUSSELS, Belgium: The European Union has announced the creation of a $ 340 billion program, called the “Global Gateway”, to serve as an alternative to China’s Belt and Road Initiative, claiming that it will create “links, not dependencies” .
The EU program aims to support global recovery by mobilizing investment in digital, clean energy and transport networks, as well as strengthening health, education and research systems worldwide.
In a statement, Jutta Urpilainen, EU Commissioner for International Partnerships, said, “With Global Gateway, we want to create strong, sustainable links, not dependencies, between Europe and the world, and build a new future for young people.”
EU Commission President Ursula von der Leyen said the plan offered a “real alternative” to China’s initiative, which some countries have accused of being a debt trap since its launch in 2013.
“Countries need better and different funding offers, and the EU plan, which will make investments over the next six years, will not build unsustainable debt levels in partner countries. They know we are transparent, they know it is accompanied by good administration “, added Von der Leyen.
In recent years, China has invested billions in building roads, railways and ports around the world to forge new trade links and diplomatic ties, with 139 countries joining, in March 2021, accounting for 40 percent of global GDP, according to US think. tank the Council on Foreign Relations.
The European alternative to China’s belt and road will be funded by a mix of $ 20 billion in grants and $ 317 billion in investments from member states, development banks, the private sector and EU funding agencies, the European Commission said.
The Commission also said it was considering creating a new credit facility for European companies selling to markets outside the EU, which would help them compete with companies receiving substantial government subsidies.
Perhaps the most immediate challenge for China’s initiative, the EU will also invest in transport infrastructure, including railways, roads, ports, airports and border crossings, to help developing countries and diversify their supply chains, by providing an additional $ 5.2 billion to fund sustainable transport links.
In response to the covid-19 pandemic, the EU announced a new plan to help countries develop local vaccine manufacturing capacity and diversify their drug supply chains. Although the EU did not offer specific funding targets, it said that Africa is a priority.
Source: sn.dk