Infrastructure as basis for sustainable regional development
- The EU’s infrastructure shortcomings took on a new dimension with the latest enlargement round. The new EU members have to narrow the distance to the old members in order to improve the competitiveness of their companies and the living conditions of the populace. At the same time, the persistent weakness of economic growth in the large, established countries of Western Europe has substantially increased the need for the old EU members to act – and not only because the traffic between east and west is expanding. Without the creation of good basic infrastructure in the new member countries in sectors such as electricity, gas, water, telecommunications, postal service, local public transport and waste disposal, the vision of a modern Europe with favourable living conditions in all regions will remain a pipe dream.
- The transition indicator system of the European Bank for Reconstruction and Development shows that among the Central and Eastern European countries (CEECs) – ranked by their average rating for all the infrastructure sectors covered – only Hungary has already attained the Western European level. Slovakia brings up the rear. Since the end of the 1990s not only Hungary but also the Czech Republic, Latvia, Lithuania and Slovenia have narrowed the gap to the old EU. By contrast, Estonia, Poland and Slovakia have lost ground.
- The transition indicator system of the European Bank for Reconstruction and Development shows that among the Central and Eastern European countries (CEECs) – ranked by their average rating for all the infrastructure sectors covered – only Hungary has already attained the Western European level. Slovakia brings up the rear. Since the end of the 1990s not only Hungary but also the Czech Republic, Latvia, Lithuania and Slovenia have narrowed the gap to the old EU. By contrast, Estonia, Poland and Slovakia have lost ground.
If the CEECs are to attain the same standard of infrastructure as the old EU they will have to invest a total of about EUR 500 bn. The sectors requiring the most investment are water/waste water and electric power. The CEECs could upgrade their road and railway networks to match the old EU average with relatively little investment.
- Investment in infrastructure as the basis for the sustainable development of the old and new regions of the EU does not hinge simply on higher public spending. What is also needed is a long-term regulatory policy oriented to market economics and coordinated across Europe. This would not only save a considerable amount of public funds, but also accelerate the pace of the necessary private investment. The vision of a modern Europe with favourable living conditions in all regions could then turn into reality much earlier than expected.
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