EU launches €300bn global bid to challenge China

The European Union (EU) has revealed details of a €300bn (£255bn; $340bn) global investment plan, described as a “true alternative” to China’s Belt and Road strategy.

European Commission President, Ursula von der Leyen, said the Global Gateway scheme should become a trusted brand.

China has funded rail, roads and ports but has been accused of leaving some countries saddled with debt.

The Commission chief said countries need “trusted partners” to design projects that were sustainable.

The EU is looking at how it can leverage billions of euros, drawn from member states, financial institutions and the private sector.

Mrs von der Leyen said the EU wanted to show that a different, democratic approach could deliver on projects that focused on tackling climate change as well as global health security and sustainable development for developing countries.

Projects had to be of high quality, with a high level of transparency and good governance, and had to deliver tangible results for the countries involved, she explained.

One EU official told the BBC that Africa would be a major focus of the scheme.

China’s strategy has reached into Africa, Asia, the Indo-Pacific and the EU too. China’s Cosco Company owns two-thirds of the huge Greek container port at Piraeus and the China Road and Bridge Corporation has built a key bridge in Croatia.

“When it comes to investment choices,” said the Commission president, “the few options that exist too often come with a lot of small print which includes big consequences, be it financially, politically but also socially.”

Projects had to be of high quality, with a high level of transparency and good governance, and had to deliver tangible results for the countries involved.

Andrew Small, a Senior Transatlantic Fellow at the German Marshall Fund, told the BBC it marked “the first serious effort from the European side to put packages together and figure out financing mechanisms, so countries considering taking loans from China have an alternative option”.

At a briefing last month, China’s ambassador to the EU, Zhang Ming, said Beijing welcomed the EU’s Global Gateway strategy if it was open and could “help developing countries”.

But he also warned “any attempt to turn infrastructure projects into a geopolitical tool would fail the expectation of the international community and harm one’s own interests”. -BBC

Show More
Back to top button