Thread by @Tagliapietra_S

The EU launched today its plan to support infrastructure development around the world: the #GlobalGateway. This is more a repackaging of existing initiatives than EU fresh cash, but anyhow represents an important step forward for the EU. Let’s see why [Thread🧵]

Baseline: the world needs major infrastructure investments. The World Bank estimates that to achieve key global goals –such as climate protection, access to energy, water and sanitation, greater mobility, etc– the world must invest in infrastructure EUR 1.3 trillion per year

China understood the strategic importance of global infrastructure development a decade ago and launched in 2013 the Belt and Road Initiative. Meanwhile, the EU action in the field remained fragmented in countless initiatives, undertaken at both EU and national level

With the Global Gateway, the EU seeks to provide a new model for global infrastructure development, alternative to the one promoted by China. A model that aims to “forge links and not create dependencies”, implicitly referring to the Belt and Road Initiative

The headline number of the Global Gateway is EUR 300 billion. These are the overall investments that the initiative seeks to mobilize between 2021-2027 in the priority fields of digital, climate and energy, transport, health, education and research

Here the usual EU-funding caveat apply: the EUR 300 billion do not represent EU fresh cash, but rather a repackaging of existing EU and national resources, in which the EU cash component (i.e., grants) only amount to EUR 18 billion

Alongside money, Global Gateway focuses on expertise. It seeks to play an important role in creating an enabling environment to attract investments in partner countries (with reform of regulatory frameworks, technical support for the development of infrastructure projects etc)

Global Gateway is intended to be delivered via Team Europe Initiatives (EU + Member States and their IFIs + EIB and EBRD). To ensure private sector involvement, it will be supported by a Business Advisory Board, while EU Delegations will ensure solid liaison in the field

All in all, the Global Gateway represents an important step towards a stronger Europe in the world. In economic terms, better spending matters more than fresh cash in this field. Europe makes 55% of global Official Development Assistance, but its fragmentation reduces impact

In geopolitical terms, the Global Gateway can help the EU to better position itself in the global infrastructure and connectivity race. A rule-based cooperation focused on a clear set of priorities might represent an attractive alternative to the Belt and Road Initiative

By scaling up cooperation on economic and social infrastructure projects, the EU thus has an opportunity to promote its values and vision of sustainability in a tangible and long-lasting manner [END]