EU plans €300bn in development aid to rival China

The European Commission has issued a fresh statement on Wednesday detailing its plan to mobilize €300 billion (US$340 billion) in public and private infrastructure investment around the world. Many have interpreted this move as a reply to China’s ‘Belt and Road’ strategy.

“Global Gateway will aim at mobilising investments of up to 300 billion euros between 2021 and 2027… bringing together resources of the EU, member states, European financial institutions and national development finance institutions,” a commission document explained.

The Global Gateway plan does not directly state that the intention is to compete with China’s longer-standing international infrastructure strategy. However, EU chief Ursula von der Leyen called it a “roadmap for major investment in infrastructure development around the world.”

The funds that will be used for the investment plan will not only be released directly by the EU or from the coffers of member states. It will also require that part of the funding comes from international institutions and key players in the private sector, if it is to get close to its target.