By Jan Strupczewski

BRUSSELS (Reuters), – Europe’s global 300 billion euro (341 billion billion USD) infrastructure partnership plan, which rivals a Chinese program should concentrate on critical projects, BusinessEurope said Tuesday.

According to a Commission document, Reuters reported that Global Gateway aims to mobilize 300 billion euro to finance projects to boost trade and ties among the European Union’s partner countries over the next six years.

Ursula von der Leyen, President of the European Commission, announced this plan in September. It aims to compete with China’s Belt and Road Initiative, which promotes projects linking Asian and African countries to a global trading network.

China’s Initiative has been criticised by some countries that received it. They claim the projects were too costly, unsustainable and corrupt, while China is being criticized for its generosity.

BusinessEurope released a statement saying that “the EU connectivity strategy should prioritise” and instead focus on the most important, rather than trying to do it all at once.

The report urged policymakers and entrepreneurs to get involved, to use new financing methods, to consider other criteria than purchase price, to blockbid from countries which do not permit reciprocal access, to encourage businesses to bid, as well as to include them in the decision-making process.

Global Gateway cash will be provided by the European Fund for Sustainable Development Plus, also known as EFSD+. This initiative includes a partnership with the European Investment Bank and grant financing and investments made by European financial and developmental finance institutions, multilateral development banks, and European financial and investment banks.

According to the Commission, EU funds will be provided with fair and favourable terms so that debt distress risk is minimized. They also invest in projects with high standards of governance and transparency.

These projects include fibre optic cables, clean transportation corridors, and clean power transmission line.

Michael Clauss from Germany, the EU ambassador to Germany said “Global Gateway can turn the EU into an even more effective geopolitical participant.” The offer of rules- and value-based cooperation at eye-level will appeal to many countries as an alternative to China’s Belt and Road Initiative.

($1 = 0.88 euros)