$600 billion: G7 launch global infrastructure initiative

Dinner in Elma

On the first day of the summit, the global economic situation, climate protection and foreign and security policy with the sanctions against Russia were discussed.

(Photo: dpa)

elmau The leading democratic industrialized countries want to compete with China with a global infrastructure initiative. At their summit in Bavaria on Sunday, the G7 countries formally launched a “Partnership for Global Infrastructure”, as US President Joe Biden said.

The project, which was announced last year, is intended to be an alternative to the “New Silk Road” project launched by China in 2013, with which the authoritarian country is opening up new trade routes to Europe, Africa, Latin America and Asia.

“Together we want to mobilize almost 600 billion dollars through the G7 by 2027,” said Biden, who initiated the project. “And I’m proud to announce that the United States will mobilize $200 billion in public and private capital for this partnership over the next five years.”

Biden added that this is not charity. “It’s an investment that will pay off for everyone, including the American people and the people of all our countries, and will boost all of our economies.” It is an opportunity for us to share our positive vision for the future.” Federal Chancellor Olaf Scholz saw the initiative as another example of the unity of the G7.

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A US official said Sunday the initiative would target low- and middle-income countries. The aim is infrastructure investments “that the countries need without being dictated from outside”.

The projects would be bound to high standards “to ensure that these investments are economically and commercially driven and do not result in debt traps”. Countries with funds from the Chinese project found that their debts were mounting and that the “so-called investments” were not reaching the people.

White House communications director for the National Security Council, John Kirby, said on Saturday that China will be “an important focus” at the G7 summit in Bavaria. Last month, US Secretary of State Antony Blinken presented China as the greatest challenge to the international order in the long term, despite the acute crisis caused by the Russian war of aggression against Ukraine.

In addition to Germany and the USA, the G7 also includes Canada, Great Britain, France, Italy and Japan. The summit at Schloss Elmau began on Sunday and will last until Tuesday.

More Handelsblatt articles on the G7 summit:

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