As of: 06/26/2022 7:39 p.m
The G7 countries want to initiate a total of 600 billion euros in infrastructure investments by 2027. People around the world should benefit from this, as should climate protection. But it is also a counter-program to China’s “New Silk Road”.
The G7 are launching a global infrastructure investment program worth almost $600 billion through 2027. At the summit in Schloss Elmau, Chancellor Olaf Scholz, incumbent G7 President, announced that the “Partnership for Global Infrastructure” program should enable investments in climate protection, in the energy sector and in the health sector, for example. US President Joe Biden initiated this initiative, said Scholz, and emphasized during the joint presentation of the initiative: “This shows the unity of the G7.”
And it is not only these plans that show unity, according to Scholz. The SPD politician said in Elmau that the G7, the European Union and NATO had stood together closely from the start and acted as one and resolutely when it came to supporting Ukraine against Russia’s brutal attack. “It’s safe to say that Putin didn’t expect this and that it’s still giving him a headache,” added the Chancellor.
The current rocket attacks on Kyiv make it clear once again how brutal Putin’s war is, said Scholz. “It shows that it’s right that we stand together and support the Ukrainians in defending their country, their democracy, their freedom to self-determination.”
Biden: Jobs in Africa and USA
Biden said, “I am proud to announce that the US will mobilize $200 billion in public and private capital for this partnership over the next five years.” Among other things, investments in the digital infrastructure are planned, he explained in Elmau. He emphasized that this is not a 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.”
The US President emphasized that the program should benefit everyone worldwide, especially in developing countries. As an example, he cited new solar power projects in Angola, Africa. They would help protect the climate and create jobs locally and in the United States. 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.
G7 summit at Schloss Elmau – The seven most important industrial nations discuss war and crises
Report from Berlin 6:00 p.m., June 26, 2022
Democracies want to join forces
EU Commission President Ursula von der Leyen announced that “Team Europe” will provide 300 billion euros as a contribution to the G7 investment initiative. This sum of state and private money is planned until 2027, said von der Leyen. The projects would be developed together with the countries. “As democracies, we must join forces,” she said. The initiative should show that “democracies enable the best way for development”. The investments should be based on “democratic values: transparency, inclusivity, sustainability”.
Japan will provide $65 billion in government and private money, according to Prime Minister Fumio Kishida. In this way, Japan will also promote the construction of airports, ports and railway connections in the Indo-Pacific. Italy’s Prime Minister Mario Draghi spoke out in favor of Western countries investing in gas infrastructure in Africa, for example, but also in the expansion of renewable energies. It is important that the gas infrastructure can then also be used for hydrogen. Canada’s Prime Minister Justin Trudeau pledged $5.4 billion.
competition with China
The project, which was announced last year, is also 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.
The West has long accused China of creating debt for the countries concerned with its initiative and of using investments to create advantages for itself rather than for others – such as securing trade routes and access to raw materials. Last month, US Secretary of State Antony Blinken presented China as the greatest challenge to the international order – despite the acute crisis caused by the Russian war of aggression against Ukraine.