EU seeks more infrastructure links

European official hopes for more joint investment, projects with Beijing

Prior to his trip to Beijing, Jyrki Katainen, the European Commission's vice-president responsible for jobs, growth, investment and competitiveness, says he expects to build more infrastructure links with China along Eurasia.

The commission has been approached by many leaders of EU member states to start working with China, says Katainen, who, at the helm of the EU's investment policies, is scheduled meet Chinese Vice-Premier Ma Kai on Sept 28 at the 5th EU-China High-Level Economic and Trade Dialogue.

"We welcome very warmly member states that are active with China," says Katainen, "but what the EU can offer is the wider investment program."

The EU and China have expressed strong interest in each other's flagship initiatives - the Investment Plan for Europe, and China's Belt and Road Initiative.

Katainen says he expects to set a a timeframe during his visit to find concrete ways to further develop synergies between these initiatives, especially through the platforms and projects in the areas of transportation, energy and digital infrastructure.

"Possibly, the European Fund for Strategic Investments or European Investment Bank could finance some of the projects which are of common interest."

Now that the EU's new financing tool, the EFSI, which is open to third countries' contributions, will start operations in few weeks, Katainen says there are good opportunities for investors outside Europe to join at the project level.

In addition to setting up a connectivity platform, Katainen says they could also create several platforms through which Chinese investors could invest in European infrastructure.

Chinese investors could participate in project co-financing, on a risk-sharing basis with EIB, covered by the EFSI. They also could participate in investment platforms that may be established in the future.

To ensure that investors, including potential Chinese investors, have reliable information on which to base their decisions, the EU will establish a transparent web portal for viable projects.

Meant to avoid any stumbling blocks or uncertainty, the new European Investment Project Portal will list potential investment opportunities in the EU, and provide potential investors with clear and transparent information in a standardized format.

"The portal is expected to be available by the end of this year or at latest by the beginning of next year," Katainen says.

"It is a website through which public and private project promoters can bring their investment projects. All the potential investors, either European or non-European, will find reliable information through the portal."

To boost investment in infrastructure, Katainen says the commission would like to see joint representation from the eurozone area's member states and non-euro members in the China-led Asian Infrastructure Investment Bank.

"The EU as an organization does not have a role at the moment because, according to the current statutes of the AIIB, it doesn't allow us to join. But obviously, there will be some discussions if there are any possibilities in the future for the EU to join.

"But that is not the case at the moment. We need more legal clarifications and the will of the stakeholders of the bank," he notes.

The most important thing, he says, is that the AIIB operate according to the best international standards.

"It will strengthen and build trust. And we want to support it very sincerely," he says.

For China Daily

(China Daily European Weekly 09/25/2015 page20)