EU plans €300 billion infrastructure fund to counter China’s BRI

What is the News?

The European Commission has announced an international infrastructure plan called the “Global Gateway Plan”. 

What is the Global Gateway Plan?

The plan aims to invest €300 billion ($340 billion) globally in infrastructure, digital and climate projects by 2027. This will help strengthen health, education and research systems across the world. 

The investment will be made in projects that can be delivered with high standards, good governance, transparency while ensuring financial sustainability at the same time. 

How will the Global Gateway Plan be implemented?

The Plan will be implemented in a Team Europe approach that brings together funding by the EU, its Member States and European financial institutions.

The plan will also require buy-ins from international institutions and the private sector as well. 

What is the significance of the Global Gateway Plan?

Firstly, the Plan is considered as an offshoot of the Build Back Better World(B3W) Initiative.

Secondly, the plan is being seen as a European effort to challenge China’s Belt and Road Initiative which was launched in 2013 and funds infrastructure projects in the developing world.

Source: This post is based on the article “EU plans €300 billion infrastructure fund to counter China’s BRI” published in The Hindu on 2nd December 2021.