BAKU, Azerbaijan, May 3.Deglobalisation trends are expected to lead to a restructuring of trade and supply chains, often around regional markets, Trend reports with reference to the European Investment Bank (EIB).
"As supply chains and markets integrate at a regional level, the future demand for more and better connectivity, and thus cross-border infrastructure, is likely to rise. While market integration in the European Union is advanced, gaps in cross-border infrastructure remain. The gap is even larger in markets bordering the European Union (e.g. accession countries). The demand for physical cross-border infrastructure will even be higher in emerging markets.
The European Union’s Global Gateway initiative aims to help bridge the infrastructure investment gap in developing countries, including in cross-border infrastructure (as has China’s One Belt One Road initiative). As regards sectoral demand for more or better cross-border infrastructure, it can be expected to be lower in the European Union for roads (although there is still some demand beyond maintenance/modernisation), but is likely to be much higher outside the European Union. By contrast, rail connections between Member States still need to be expanded," reads the latest EIB report.
The European Investment Bank has long supported cross-border infrastructure investments in and outside the European Union, financing on average eight cross-border infrastructure projects per year. Besides providing direct financial support and mobilising private sector funding, the Bank uses its expertise to stimulate cross-border infrastructure development from multiple angles, including the provision of technical advice and by working with the European Commission to shape policy initiatives that foster sound cross-border projects. As a result, the European Investment Bank has emerged as a unique centre of expertise for cross-border infrastructure projects that is well placed to play a key role in the challenges ahead.