January 28, 2022

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The European Union unveiled a global investment program of 300 billion euros

The European Union unveiled a global investment program of 300 billion euros

The goal is to support supply chains, trade and combat climate change.

Brussels. The European Commission on Wednesday unveiled a €300 billion investment plan by 2027 in infrastructure, digital and climate projects around the world. The aim is to strengthen European supply chains, support European Union (EU) trade and help fight climate change.

One belt, one way

The Global Gateway scheme is seen as the European Union’s response to China’s new Belt and Road Initiative (BRI). The European scheme will focus on digitization, health, climate, energy and transport, as well as education and research.

EU funds will come in the form of grants, loans and guarantees from its institutions as well as from EU governments and financial institutions and from national development banks. “The European Union will provide its financing on fair and favorable terms to reduce the risk of the debt crisis,” the statement said.

Already in 2013, China launched the Belt and Road Initiative project to strengthen business lines with the rest of the world and is spending significant resources on infrastructure development in dozens of countries around the world.

Financing Terms

However, EU officials have said in private sessions that financing terms offered by Beijing are often unfavorable or opaque. They are making some of the poorer countries, especially in Africa, dependent on China through debt.

“Without proper transparency, good governance and high standards, projects may be poorly selected or designed, may remain incomplete or may be used to incite corruption. This not only stifles growth and robs local communities, but ultimately creates dependencies that can Limit the ability of countries to make decisions.

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According to the Commission, its Global Gateway plan will focus on building relationships with other countries without creating dependencies. “It will focus on physical infrastructure, such as fiber optic cables, clean transmission corridors, and clean electricity transmission, in order to enhance digital, transportation and energy networks,” the commission said.

It will also provide an enabling environment to ensure the operation of projects by offering attractive investments and favorable business conditions, regulatory convergence, standardization, supply chain integration and financial services.

The Commission also said the EU will use its assistance to other countries to advance its own interests and strengthen its own supply chains, which have been vulnerable during the disease pandemic. COVID-19. “This will help open up more jobs for the EU economy, where about 38 million jobs depend on international trade,” she added.