The Global Gateway: A Path Towards EU Geopolitical Relevance and Responsible Investment

The Global Gateway: A Path Towards EU Geopolitical Relevance and Responsible Investment

Introduction: The EU's Global Gateway Strategy

In the face of a changing geopolitical landscape and the rise of multipolarity, the European Union (EU) has launched its Global Gateway strategy to assert itself as a significant global actor. This comprehensive connectivity strategy, launched on December 1, 2021, aims to establish sustainable, secure, and smart links with countries worldwide, focusing on digital, energy, and transport infrastructure. Additionally, the EU seeks to enhance health, education, and research systems globally. With a commitment to mobilize up to €300 billion in investments between 2021 and 2027, the EU aims to fill the void left by its diminishing influence in key regions, particularly in comparison to China and other emerging powers.

Addressing the Diminishing Influence and Competition with China

The EU's decision to launch the Global Gateway stems from its concern regarding China's increasing influence, particularly in Africa, which was traditionally regarded as the core sphere of influence for European countries. Despite the EU's higher trade and investment figures in Africa compared to China, it feels that its collective value-added is undervalued due to a lack of a unified messaging and brand. China's dominance in infrastructure development, an area in high demand in Africa, has further fueled the EU's drive to present an alternative to the Chinese Belt and Road Initiative (BRI). The EU's Africa-Europe Investment Package, emphasizing energy, transport, and digital infrastructure aligned with the African Union's Programme for Infrastructure Development, signifies its efforts to align with African needs and interests.

The Components of the Global Gateway Strategy

The Global Gateway strategy encompasses four main components that shape its implementation and impact:

1. A 'Trusted' Brand: The EU aims to create a recognizable brand to compete effectively in the increasingly challenging geopolitical landscape. Historically, the EU has not effectively communicated its collective impact or created a brand that highlights its added value in infrastructure investments. Establishing a trusted brand is crucial for positioning the EU favorably against geopolitical rivals.

2. A Pledge: The EU has committed to mobilizing €300 billion in investments between 2021 and 2027. This ambitious target reflects the EU's determination to attract external investments for sustainable development under its budget, with an emphasis on investing half of the funds in Africa through the EU-Africa Investment Package.

3. A Direction: The Global Gateway strategy aims to mobilize public and private investments more effectively, aligning them with geopolitical ambitions. While concerns regarding the EU's commitment to development policy principles and the challenges of mobilizing private investments exist, the EU's policy shift towards a more policy-driven external investment reflects its pursuit of sustainable development and alignment with political and economic interests.

4. A Methodology: The Global Gateway strategy operationalizes through the Team Europe approach and the Team Europe Initiatives, promoting a strategic approach to joint programming between the EU and its member states. However, challenges related to member states' political and financial buy-in and potential rivalries and competition among institutions and member states may impede effective cooperation and governance.

Overcoming Challenges and Strengthening EU Geopolitical Relevance

To ensure the success of the Global Gateway strategy and strengthen EU geopolitical relevance, several key actions and considerations must be taken:

1. Tackling Perception Problems: The EU needs to address perception issues, particularly in Africa, by demonstrating genuine listening to African counterparts and ensuring investments are driven by local demand. It must overcome the perception of fragmentation, slow procedures, and a paternalistic approach by engaging in partnerships based on equal footing and mutual respect.

2. Bringing the Brand to Life: Sustained communication, political buy-in, and tangible impact are essential to establish the Global Gateway as a trusted brand. The EU must articulate clear geopolitical goals beyond developmental priorities and foster greater policy coordination between public and private sector actors, as well as economic and foreign policy ministries.

3. Scaling Up Private Investment: Mobilizing sustainable finance at scale to boost infrastructure investments requires creating an attractive offer for private sector investors. The EU's leverage ratio of 10, based on the EFSD+, poses a challenge that demands collaboration among EU member states to pool resources and expertise. Encouraging small companies in multiple member states to join forces for projects outside the EU is crucial.

Conclusion: A Path Towards Responsible Investment and Global Influence

The Global Gateway strategy represents the EU's endeavor to reclaim and strengthen its geopolitical relevance while promoting responsible investment. By establishing a recognizable brand, mobilizing substantial investments, redirecting policy focus, and fostering cohesive governance, the EU aims to become a trusted global actor. Overcoming challenges, ensuring member states' buy-in, and addressing perception issues will be critical to achieving the EU's ambitions. Through sustained efforts, the EU can solidify its position as a responsible global player guided by democratic values, good governance, sustainability, and equal partnerships.

Actionable Advice:

1. Foster Strong Partnerships: Engage with partner countries, private sector actors, and member states to build equal partnerships and ensure investments are demand-driven and mutually beneficial.

2. Streamline Governance Mechanisms: Enhance coordination and coherence within the European financial architecture for development, aligning policies across multiple sectors and institutions to effectively implement the Global Gateway strategy.

3. Communicate Impact and Value: Develop a comprehensive communication strategy to highlight the EU's collective impact, brand, and added value, ensuring that the Global Gateway resonates with partners and garners widespread recognition.

References:

• "The Global Gateway: A recipe for EU geopolitical relevance? - Global-Gateway-recipe-EU-geopolitical-relevance-ECDPM-Discussion-Paper-323-2022.pdf"
• "Ugandan activists call on EU to move forward on due diligence law"