EU Launches €300bn Infrastructure Funding Scheme Countering China’s BRI

• 8 December 2021
• Construction Focus
• 1128 Views

The European Commission and the High Representative for Foreign Affairs and Security Policy recently launched a new €300 billion global infrastructure funding program called the Global Gateway, aiming to boost recovery in low and middle-income countries as an alternative to China’s Belt and Road Initiative (BRI).

Announced on 1 December, the scheme will focus on funding projects in various sectors on transport, energy, health, and digital infrastructure. The plan is to issue loans, some grants and to use financial tools to attract private investment from 2021 to 2027.

The EU said the COVID-19 pandemic had harshly exposed the human impacts of inadequate infrastructure, citing a G20 estimate that the global infrastructure investment deficit would reach €13 trillion by 2040.

As an alternative to China’s BRI, the EU claimed that the Global Gateway can demonstrate how democratic values provide certainty and transparency for investors, sustainability for partners and long-term benefits for people around the world.

President of the European Commission Ursula von der Leyen said the European model is about investing in both hard and soft infrastructure, in sustainable investments in digital, climate and energy, transport, health, education and research, as well as in an enabling environment guaranteeing a level playing field.

“We will support smart investments in quality infrastructure, respecting the highest social and environmental standards, in line with the EU’s democratic values and international norms and standards. The Global Gateway Strategy is a template for how Europe can build more resilient connections with the world,” she added.

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.

• Economy and Finance
• Policy and Strategy
• Road and Infrastructure