The European Commission is set to inject €300bn into global infrastructure, which is expected to create around 38m jobs in the process.
The hefty investment scheme, known as Global Gateway, is also intended to bolster trade to the European Union (EU), strengthen supply chains and tackle climate change.
The projects that will receive fiscal boosts will be dotted across the globe, with the plan mirroring China’s Belt and Road initiative, which saw it reinforce infrastructure in neighbouring countries in a bid to level up the wider region.
The cash will come from EU institutions, including financial institutions such as banks, alongside governments.
“The EU will offer its financing under fair and favourable terms in order to limit the risk of debt distress,” the Commission said in a statement.
The initiative will also “make sure projects deliver, by offering attractive investment and business-friendly trading conditions, regulatory convergence, standardisation, supply chain integration, and financial services”.
In bolstering national resources in surrounding states, the Commission said the Global Gateway plan aims to forge closer ties with other countries.
“Without proper transparency, good governance and high standards projects can be badly chosen or designed, left incomplete or be used to fuel corruption. This not only stunts growth and deprives local communities but it ultimately creates dependencies, which can limit countries’ ability to make decisions,” the Commission added.