By Jan Strupczewski

BRUSSELS. (Reuters.) The European Commission revealed Wednesday a plan for investing 300 billion euro globally in infrastructure, digital and climate projects. This is a much better option to China’s Belt and Road Initiative.

Global Gateway is an initiative to increase Europe’s trade, supply chains and fight climate change. The program focuses on the digitalisation of health and climate, energy, transport and education sectors as well research and education.

China’s Belt and Road initiative was launched in 2013. It aims to increase trade relations with other countries. Since then, it has spent heavily on infrastructure development in many of its neighboring countries.

Officials from the EU claim that Beijing’s financing terms are not always favorable and transparent. This makes some countries in Africa dependent upon China via debt.

Ursula von der Leyen, President of the European Commission, stated that countries “need better and more offers” (to China’s initiative). She spoke at a press conference to unveil the EU scheme which she described as “a real alternative”.

EU money in the form grants, loans, or guarantees will be provided by governments and EU institutions as well as EU financial institution and national development bank.

The Commission stated in a statement that the EU would offer financing to its members at fair terms and favorable conditions in order limit debt distress.

Without transparency and good governance, projects that are not transparent, fair, or of high standard can be poorly chosen, designed or left unfinished, or used as a tool to encourage corruption. The Commission stated that this not only slows down growth but also deprives communities. It can also create dependencies which could limit the ability of countries to take decisions.

The Commission stated that the Global Gateway plan would be able to build links with countries around the world without creating dependency.

“It will focus on physical infrastructure – such as fibre optic cables, clean transport corridors, clean power transmission lines – to strengthen digital, transport and energy networks,” the Commission said.

The Commission stated that the EU could help other countries to promote their interests as well as strengthen its supply chains. Their vulnerability became evident in the COVID-19 pandemic.