The global networking of Europe is not progressing as hoped
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How can the EU's Global Gateway initiative better engage European businesses? In a new concept paper, the German Chamber of Commerce and Industry (DIHK) puts forward proposals for the urgently needed mobilisation of the private sector.
Global Gateway aims to support partner countries in the sustainable development of electricity grids, transport routes and internet connections, schools and clinics – while at the same time offering an alternative to China's "New Silk Road". Four years after its launch, however, the EU's initiative remains far behind its potential: many European companies that could benefit and make a valuable contribution are refraining from participating.
In its latest concept paper, the DIHK is therefore calling for lower barriers and better framework conditions, especially for small and medium-sized enterprises (SMEs).
Volker Treier
© DIHK / Werner Schuering
"If Global Gateway is to be an international counterweight, it must finally be practical, fast and easy to use for European SMEs", says DIHK Foreign Trade Director Volker Treier. So far, many companies have failed to participate due to complicated funding conditions, a lack of support in finding partners and a lack of protection against risks.
The concept paper lists specific suggestions for improvement: simpler tenders, guarantees against investment losses, a central one-stop shop for guidance, and SME access to funding with lower minimum volumes. In addition, the DIHK suggests making the EU's new trade and investment partnerships (Clean Trade and Investment Partnerships, CTIPs) more effective.
The DIHK also believes that the visibility and management of Global Gateway needs to be strengthened. "If the majority of investments are to come from private sources in the long term, economic efficiency and planning security must play a much greater role", says Treier. "This requires the private sector to be included in the initiative's decision-making structures."
Global Gateway has "the potential to close infrastructure gaps worldwide and bring European companies more into play", the DIHK's head of foreign trade clarified. "Four years after its launch, a holistic approach is finally needed that takes greater account of the needs of companies."
The concept paper "From Vision to Investment" with details is available for download here:
