Thread by @J_Jakobowski

With the Three Seas Initiative summit approaching, it's high time for a recap on why 12 CEE nations joined efforts to develop #Connectivity, and why 🇩🇪🇺🇸🇨🇳 got so interested in it

Here's a thread on the main points of our latest @PIE_NET_PL report on #3SI [link at the end]

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3SI is a political platform of 12 EU states, aimed at developing intra-regional connectivity (transport, energy, digital, people), complementing existing EU frameworks. It's got its own investment fund, got high-level 🇺🇸🇩🇪 endorsements etc. (find more details in our report)

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CEE was the fastest growing EU region after the 2004 enlargement. 3SI's share in EU GDP rose from 15,2% to 19,2%. With a flood of FDIs, it became EU's industrial backbone, esp. crucial for Germany (the 3SI region generates 19,8% of 🇩🇪's trade, more than any major partner)

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The point is, in the last decade CEE's integration with the Western Europe progressed much faster than intra-CEE integration. You can see it in the trade dynamics, esp. with the post 2011 divergence in intra- and extra-CEE trade of 3SI countries

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It's about the structure of global value chains, but those often follow the availability of infrastructure.

And there's a serious gap in the North-South, intra-CEE connectivity. Especially when compared with advanced existing West-East transport, energy and digital links

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This connectivity gap makes it hard for CEE to take advantage of each other's fast market growth, develop advanced business partnerhips, become more diversified.

The Three Seas Initiative is basically a way to bridge that gap, using different internal and external resources

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The EU is - and will be - the main tool to pursue this goal. The region used €80 billion of EU funds to develop connectivity only in the last 7 years. EU funds are crucial, but it can not cover all regional needs, and uneven absorbtion rates are still a challange

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So the region mobilises internal and external funding through the Three Seas Initiative framework. The 3SI Investment Fund was established, with €0,5bn initial funding, aiming to attract €3-5bn from private and public sources. The 3SI Stock Exchanges partneship was formed.

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🇺🇸 The United States was the first major external partner that got involved in the Three Seas Initiative, with Sec. Pompeo pledging $1 bn funding for the 3SI Fund in 2019. American initial interest in energy connectivity is now supplemented with digital ties

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🇨🇳 China's not officially involved in the 3SI, however, official documents of China-led 17+1 regional format refer to the initiative. Beijing is also interested in bridging CEE transport connectivity gaps, with its own financing infrastructure (often at odds with EU norms)

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Other major players also get involved in CEE connectivity, with 🇩🇪 FM Heiko Maas joining the 3SI Summit, and 🇯🇵's Abe approaching the region.

We believe the interest in CEE connectivity will rise - both in geopolitical and economic terms, given the region's great potential

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CEE is becoming a vibrant hub in EU-Asia trade, with thriving trans-Eurasian train transports, and regional ports in Gdańsk, Koper, Constanta expanding fast.

De-globalization trends promote European neashoring and backshoring, rising CEE region's investment prospects

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Thanks for reading, we very much encourage you to read our full "Building closer
connections: the Three Seas region as an economic area" report, linked below.

Stay tuned for the October 3SI Summit in Tallinn!

pie.net.pl/wp-content/upl…

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