Global Gateway Plan: EU
The European Commission has announced a plan, called Global Gateway, to mobilise EURO 300 billion by 2027 in public and private infrastructure investment around the world.
- Although the plan doesn’t mention China, it is seen as a response to China’s Belt and Road strategy.
About Global Gateway Plan:
- Developmental Dimensions: With Global Gateway, the EU, in a Team Europe approach, will offer its partners a response to the urgent needs:
- To develop sustainable and high quality digital, climate and energy and transport infrastructures.
Strengthen health, education and research systems across the world.
- To develop sustainable and high quality digital, climate and energy and transport infrastructures.
- Funding: To finance the project, the EU will use its European Fund for Sustainable Development Plus.
- Under this, 40 billion euros are made available in guarantee capacity, and will offer grants of up to 18 billion euros from external assistance programs.
- The plan will need funding from international institutions and from the private sector if it is to get anywhere near its target.
- The financing will be done under fair and favorable terms in order to limit the risk of debt distress.
- Offshoot of B3W Project: The EU strategy is an offshoot of the Build Back Better World (B3W) Initiative.
- B3W is an international infrastructure investment initiative announced by the Group of Seven (G-7) richest democracies in June 2021.
