Retail Crowd

Complete British News World

The European Union is embarking on a great adventure

Eight years after China, the European Union launches its own “Silk Road” program, Politico. European Commission President Ursula von der Leyen announced the previously leaked program to the press.

Named the Global Gateway, it is a response to China’s Belt and Road Initiative (BRI, or New Silk Road) program, which aims to create a land corridor to transport goods from Asia to Europe, the Middle East and Africa through infrastructure improvements in many countries around the world.

Instead, the European program will provide opportunities for the world’s least developed countries to make progress in the areas of next generation infrastructure, fiber networks, 5G mobile telephony, and green energy. In addition, head-to-head competition with the Belt and Road Initiative A Transportation It will also support infrastructure expansion. To this end, the EU will invest 300 billion euros in project financing, but it also expects public and private capital to increase financing.

The amount seems modest compared to what Beijing is devoting to the new Silk Road – Morgan Stanley estimates that the Chinese will pay $1.2-1.3 trillion by 2027 – but recent surveys show that the Belt and Road Initiative has lost its initial momentum after many countries plunged into too much Chinese debt to fund some projects. Corruption scandals lined the shipping lane in China. Therefore, the European Union will emphasize that the Global Gatewey projects will be transparent, and also oblige some governments of emerging countries to prefer the ambiguous Chinese model, which allows some fishing at a loss.

criticism and division

The EU concept has not yet been published and has already been criticized, mainly for the lack of a list of specific projects. In the case of the Belt and Road Initiative, 13,000 projects have been launched in 165 countries, while an EU official says the global gateway is just a political decision that sends a strong message to China emphasizing the strength and justice of democracies in the face of the negatives surrounding the new silk. way.. there is not much talk about its implementation.

READ  Catalog - Tech-Science - Duck of the Year: Goose liver made in a lab

In addition, the new Silk Road has already penetrated deep into Europe, which made some EU countries interested in the success of the Belt and Road Initiative. The best examples of this are the port of Piraeus in Greece, one of the largest container terminals in Europe, majority owned by the Chinese state-owned COSCO, and a display project for the New Silk Road.

Linked to this is the Budapest-Belgrade railway development project, which may be an important transit route for Chinese goods, but, according to recent Serbian calculations, it will not be repaid in the foreseeable future, while the loan budget is 600 billion HUF.

The Cypriot government is also committed to the Belt and Road Initiative, for example by signing a €290 million contract with Beijing to build a liquefied natural gas terminal.

I need own capital!

Experts say the key to the Global Gateway is to leverage private capital, which would partially increase resources and, in principle, improve efficiency and transparency. The Chinese actually blamed governments for the new Silk Road for getting into business and bringing in private players (for example, the Hungarian section of the Belgrade-Budapest Railway is being built by a private company, Lőrinc Mészáros, a big businessman).

MEP Reinhard Bütikofer, an expert on China, believes that by the end of next year, several projects will have to be launched in different regions in order to take the EU program seriously. This also requires the participation of private capital in the partnership.

Michael Claus, Germany’s ambassador to the European Union, points out that the Global Gateway could put the European Union on the world map as a major geopolitical player. According to him, this project, with its transparency and at least the same amount of cooperation based on value and interests, can be an alternative to the New Silk Road in the eyes of many emerging countries.

READ  Inoculate with Sinopharm, he wrote a letter to the decision-makers