EU’s Southeast Asia push hits funding crunch as China widens lead

AI Summary

A European Union funding shortfall and budget deadlock could slow the bloc’s infrastructure investment plans in Southeast Asia. The funding constraint may impede regional connectivity and green transition goals as the EU seeks to compete with China’s growing influence.

An EU funding crunch is threatening to stifle the bloc’s ambitions to expand its influence in Southeast Asia, as Brussels grapples with a budget deadlock that could slow infrastructure investments across the fast-growing region. The funding squeeze could hinder the green transition and regional connectivity goals of the Association of Southeast Asian Nations, even as Brussels seeks greater strategic autonomy amid competition with Beijing’s economic clout. Analysts expect the European Union to...