Robert Besser
08 Dec 2021, 20:45 GMT+10
BRUSSELS, Belgium: The European Union has announced the creation of a program worth $340 billion, called "Global Gateway," to act as an alternative to China's Belt and Road initiative, claiming it will create "links, not dependencies."
The EU program aims to assist global recovery by mobilizing investments in digital, clean energy and transport networks, as well as boosting health, education and research systems across the world.
In a statement, Jutta Urpilainen, EU commissioner for international partnerships, said, "With Global Gateway, we want to create strong and sustainable links, not dependencies, between Europe and the world, and build a new future for young people."
European Commission President Ursula von der Leyen said the plan offered a "'true alternative" to China's initiative, which is accused by some countries as being a debt trap since its launch in 2013.
"Countries need better and different offers of finance, and the EU plan, which will make investments over the next six years, will not build up unsustainable debt levels in partner countries. They know we are transparent, they know it is accompanied by good governance," Von der Leyen added.
Over the past few years, China has poured billions into building roads, railways and ports worldwide to forge new trade links and diplomatic ties, with 139 countries signing up, as of March 2021, accounting for 40 percent of global GDP, according to U.S. think tank the Council on Foreign Relations.
The European alternative to China's Belt and Road will be financed by a mix of $20 billion in grants and $317 billion in investments from member states, development banks, the private sector and EU financing bodies, the European Commission stated.
The Commission also said that it was considering the creation of a new credit facility for European companies selling into markets outside the EU, which would help them compete with businesses receiving hefty government subsidies.
Perhaps the most direct challenge to China's initiative, the EU will also invest in transport infrastructure, including railways, roads, ports, airports and border crossings, to help develop countries and diversify their supply chains, through 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 pharmaceutical supply chains. While the EU did not offer specific funding targets, it said Africa is a priority.
Get a daily dose of San Diego Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to San Diego Sun.
More InformationSYDNEY, NSW, Australia - Stocks in China were flat to lower on Tuesday as investors weighed up the disappointing economic ...
SACRAMENTO, California: California Governor Gavin Newsom is proposing to give a $1.4 billion government loan to extend the life of ...
NEW YORK CITY, New York: The Centers for Disease Control and Prevention relaxed its COVID-19 guidelines last week, driven by ...
Right-hander Tyler Mahle will try to continue his winning streak on Wednesday afternoon when the Minnesota Twins attempt to complete ...
Washington [US], August 17 (ANI): Hollywood star Robert De Niro will soon be seen sharing screen space with himself as ...
Washington [US], August 17 (ANI): Hollywood star Zoe Kravitz has given a rare insight into what it's been like working ...
BANGKOK, Thailand: Thailand seeks to invest $61.97 billion in its industrial eastern region over the next five years, in a ...
JEDDAH, Saudi Arabia: In a Twitter post published this week, Saudi Arabia's Kingdom Holding said it had invested in Russian ...
SYDNEY, NSW, Australia - Stock markets across the Asia Pacific region rallied on Wednesday.In Japan, the Nikkei 225 surged 353.86 ...
DHAKA, Bangladesh A preliminary investigation into the tragic crane accident that killed five people in Uttara on Monday has found ...
HANOI, Vietnam: The Vietnamese government is considering building a high-speed railway, with a possible cost of up to $58.7 billion, ...
NEW YORK, New York - Stocks were decidedly mixed in the U.S. on Tuesday as investors struggled to make a ...