Global Gateway
 Logo of the Global Gateway Initiative | |
| Formation | 1 December 2021 |
|---|---|
| Founder |  European Union |
| Purpose | Promote green, democratic and secure economic development and partnership |
| Location |
|
Main organ | EU Commission |
Budget | EUR€ 300 billion |
| Website | https://ec.europa.eu/ |
The Global Gateway Initiative is a strategy by the European Union to invest in infrastructure projects worldwide.[1][2] The project was initiated by the EU Commission under the leadership of Ursula von der Leyen. Over the period 2021–2027, the EU will invest €300 billion.[1] Investment into Africa is the regional priority of the initiative, as half the funds are allocated to projects on the continent. They aim to improve the green transition, digital transition, sustainable economic growth, health care and education in Africa.[1]
The initiative is seen as an alternative or rival to the Chinese Belt and Road Initiative.[1][3] The EU wants to encourage links, and not dependencies, according to von der Leyen. As of December 2022, Global Gateway has been criticised for failing to provide concrete details on projects and drawing heavily on already-existing programmes.
Objectives
[edit]As part of its trade relations, the EU sees Global Gateway as an opportunity to trade and invest in global partners better. The initiative is also a response to a longer systemic rivalry between NATO,[4] the European Union, the United States, and other closely related G7 States against the People's Republic of China, made to counter increasing Chinese political and economical influence. At the 47th G7 summit, the leaders agreed on starting investment initiatives to counter the Belt and Road Initiative, with demands for inventions in the hundreds of billions. The Statement by the G7 on partnership for infrastructure and investment[5] resembles the approach and goals of the Global Gateway Initiative.[6] Another reason for the proposed investments is the worsening of Climate Change, an issue which the EU sees as vital to tackle. Thus, the Initiative was described as "European Green Deal Worldwide", as a reference to the EU's European Green Deal and intensification of the fight through this mechanism.[7]
Financing
[edit]The main funding will mostly be contributed by the EU and Member State institutions for development and finances, but also the European Investment Bank and the European Bank for Reconstruction and Development, but will also leverage private investments from the Pre-Accession Assistance (IPA) III, Interreg, InvestEU and Horizon Europe. A European Export Credit Facility is being considered for establishment, to empower European companies in third countries where they have to face strong disadvantages.
Specific funding programmes are NDICI-GE, also known as "Global Europe", (Budget: €79billion) with the EFSD+ as its financial arm, backed by the Union's External Action Guarantee (EAG) with a budget of €40billion (out of a total of €53.4 billion) to decrease the risk of investments.
In total, the EFSD+ will provide €135 billion in investments guaranteed by the External Action Guarantee for Global Gateway projects, with up to €18 billion in grants and a further planned and estimated €145 billion in investment volumes by European financial and development institutions.[2]
Approximately half of the anticipated €300 billion funds Global Gateway funds are to be raised via private investments that the EU hopes to generate with a system of financial guarantees.[8]
Much of the Global Gateway funding proposed in 2021 was based on the re-classification of existing financial commitments from the EU's 2021-2027 budget as opposed to new resources.[9]: 62
In 2022 and 2023, the European Investment Bank provided 60 billion total investments as part of the Global Gateway initiative. [10]
Projects
[edit]In December 2022, the EU held a €387,000 virtual gala in the Metaverse to promote the Global Gateway project.[11] Six people attended.[11]
Outlook
[edit]In 2021 comments on the Initiative, Ursula von der Leyen stated that the 6th European Union–African Union Summit would be the first case test for the Initiative, calling it a "flagship project". Other mentioned regions which are viable for funding and further partnership are Japan and India, as well as the Western Balkans, the Eastern Partnership, and the Southern Neighbourhood, but also Central Asia and Latin America.[12]
Cooperation
[edit]Close partnership is planned with the American-led Build Back Better World initiative, which has similar goals. Both ventures will reinforce and support each other.[13]
Criticism
[edit]As of at least 2022, it was unclear how much progress had been made to advance the Global Gateway towards realization.[9]: 148
A report by the South China Morning Post in December 2022 states that concrete details on potential projects are difficult to find, and that the EU has instead published high-level summaries of potential projects it would like to do.[14] Specific projects cited by as part of Global Gateway include projects for which funds were already appropriated rather than new funding.[14] According to policy fellow W. Gyude Moore of the Center for Global Development, Global Gateway "draws heavily on existing programmes and initiatives that would have moved forward even if Global Gateway did not exist" and the project "has not gone beyond just words."[14]
See also
[edit]- Build Back Better World
- Partnership for Global Infrastructure and Investment
- India-Middle East-Europe Economic Corridor
References
[edit]- ^ a b c d Tagliapietra, Simone (2024). "The European Union's Global Gateway: An institutional and economic overview". The World Economy. 47 (4): 1326–1335. doi:10.1111/twec.13551. ISSN 0378-5920.
- ^ a b "Global Gateway: up to €300 billion for the European Union's strategy to boost sustainable links around the world". EU Commission. Retrieved 5 December 2021.
- ^ "EU launches 'Global Gateway' to counter China's Belt and Road". Politico. 15 September 2021. Retrieved 5 December 2021.
- ^ "NATO 2030: Analysis and Recommendations of the Reflection Group Appointed by the NATO Secretary General" (PDF). NATO. Retrieved 5 December 2021.
- ^ "G7: Partnership for Infrastructure and Investment". G7 UK 2021. Archived from the original on 20 May 2022. Retrieved 5 December 2021.
- ^ "The European Union works with G7 partners to promote investments, based on the Global Gateway strategy". EU Commission. Retrieved 5 December 2021.
- ^ ""Global Gateway": the EU Green Deal goes global". E3G. December 2021. Retrieved 6 December 2021.
- ^ Barbero, Michele. "Europe Is Trying (and Failing) to Beat China at the Development Game". Foreign Policy. Retrieved 6 February 2023.
- ^ a b Garlick, Jeremy (2024). Advantage China: Agent of Change in an Era of Global Disruption. Bloomsbury Academic. ISBN 978-1-350-25231-8.
- ^ Bank, European Investment (13 June 2024). EIB Global Impact Report 2023/2024. European Investment Bank. ISBN 978-92-861-5769-1.
- ^ a b "Only 6 people showed up to the EU's $400k party in the metaverse". Fortune. Retrieved 17 January 2023.
- ^ "Questions and Answers on Global Gateway". EU Commission. Retrieved 6 December 2021.
- ^ "EU-Initiative Global Gateway". Hans-Seidel-Stiftung. 29 June 2022. Retrieved 5 February 2023.
- ^ a b c "1 year on, EU alternative to China's belt and road fails to deliver". South China Morning Post. 31 December 2022. Retrieved 17 January 2023.