Activists and anti-poverty campaigners have voiced strong objections against the European Commission’s Global Gateway initiative, asserting that it favors commercial interests over genuine development efforts. This program is intended as the EU’s countermeasure to China’s ambitious Belt and Road Initiative, which invests billions in infrastructure to enhance China’s influence in developing nations.
A report released on October 9 by Oxfam, the European Network on Debt and Development (Eurodad), and Counter Balance claims that the Global Gateway disproportionately prioritizes European business opportunities rather than addressing poverty alleviation. The report examined 40 EU-funded projects and found that the overwhelming presence of European companies suggests a concerning tendency to focus on commercial gains at the expense of development objectives.
“The data indicates a significant risk that the Global Gateway is more concerned with benefiting European enterprises in the Global South rather than achieving critical goals like poverty reduction,” the report states.
Launched in 2021, the Global Gateway aims to mobilize both public and private investment in regions such as Africa, Latin America, Asia, and the Balkans. It seeks to fund initiatives in vital areas like digital transformation, green energy, transportation, research, and education. The EU initially framed the project as a strategic response to China’s Belt and Road Initiative, which provides substantial funding for infrastructure projects that extend China’s geopolitical and economic reach.
However, critics highlight transparency issues surrounding a key advisory group linked to the Global Gateway. This consultative body comprises 59 European companies and business associations, including Alstom, Bayer, ENEL, Telefonica, and Total Energies, while notably excluding companies based in the Global South. “The lack of representation from Southern companies raises serious concerns about the initiative’s inclusivity,” remarked Alexandra Gerasimcikova, Head of Policy and Advocacy at Counter Balance, during a press conference.
The European Commission claims that between 2021 and 2023, the Global Gateway successfully mobilized investments totaling €179 billion across 225 key projects. Of this amount, €50 billion was sourced from the European Commission, with the remainder from EU Member States, the European Investment Bank, and the European Bank for Reconstruction and Development (EBRD).
In defense of the initiative, Marlene Holzner, Head of Unit at the European Commission’s Directorate for International Partnership, stated that the Global Gateway represents a “paradigm shift” in the approach to development aid, moving away from ineffective grant systems that failed to engage developing countries in the past. “By collaborating with banks, we can increase our project output tenfold,” Holzner explained, noting that EU member states have reduced development aid in favor of support for Ukraine and the defense sector.
However, Gerasimcikova cautioned that the contradictory policies underpinning the Global Gateway obscure the initiative’s commercial motives under the guise of supporting development. She highlighted the recent EU-Chile trade agreement, which an assessment indicated could lead to job losses in 24 out of 31 sectors, predominantly within manufacturing.
“The Global Gateway requires fundamental reforms to genuinely promote partnerships that benefit all parties, rather than merely providing safety nets for European businesses in case of failure,” Gerasimcikova concluded, emphasizing, “This approach does not equate to authentic development.”
Related Topic:
DOJ Considers Requesting Breakup of Google Following Antitrust Ruling
Small Business Administration Approaches Funding Limit Amid Disaster Challenges
Steve Cram and Allison Curbishley to Headline Worcester Business Expo
