JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Connecting Europe and Asia - Building blocks for an EU Strategy
Date: 2018-09-19
Institutions: European Commission, European External Action Service
Subjects: Asia, EU strategy, digital single market, digital technology, economic development, information technology, innovation, international cooperation, sustainable development, transmission network

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 19.9.2018 JOIN(2018) 31 final  JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Connecting Europe and Asia - Building blocks for an EU Strategy        
 
 
JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, 
THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE 
COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK 

Connecting Europe and Asia – Building blocks for an EU Strategy  

1.  Introduction 

The relationship between the European Union and Asia is of global significance and the ties 
are likely  to increase in the coming  years. Asia, with  roughly 60%  of the world  population 
accounts for 35% of the EU's exports (€618bn) and 45% of the EU's imports (€774bn).1 For 
both  Europe  and  Asia,  growing  global  interdependence  is  an  opportunity  for  increased 
cooperation,  for  peaceful  political  cooperation,  fair  and  stronger  economic  relations, 
comprehensive  societal  dialogue  and  collaboration  on  international  and  regional  security. 
Europe  and  Asia,  together,  can  be  the  engines  of  a  more  cooperative  approach  to  world 
politics, global stability and regional economic prosperity.  

To  make  a  further  step  change  in  that  cooperation  and  to  unlock  opportunities  within  the 
global  economy,  the  EU  and  Asia  should  ensure  an  efficient  and  sustainable  connectivity. 
Connectivity2  contributes  to  economic  growth  and  jobs,  global  competitiveness  and  trade, 
and people, goods and services to move across and between Europe and Asia. 

Some estimate that Asia will require over 1.3 trillion EUR a year of infrastructure investment 
in the coming decades to maintain today’s growth rates and to adapt to climate change.3 By 
comparison,  in  the  EU,  the  investment  in  the  Trans-European  network  for  transport  is 
estimated  to  require  1.5  trillion  EUR  in  the  period  2021-2030.  It  is  however  not  purely  an 
investment  challenge.  Asia  encompasses  different  regions,  which  are  home  to  very  diverse 
countries  in  terms  of  economic  models  and  level  of  development.  Consistent  and  aligned 
rules,  standards  or  practices  are  needed  to  promote  market  access  and  the  movement  of 
goods, services, capital and people across borders. High environmental and social standards, 
adequate  planning  and  full  life-cycle  cost-benefit  analysis  are  necessary  to  ensure  the 
sustainability  of  connectivity  investments  over  the  longer  term.  Fiscal  and  financial 
sustainability of infrastructure projects need to be ensured to avoid the risk of debt distress. 

This  is  why  the  Commission  proposes  the  building  blocks  towards  an  EU  Strategy  on 
Connecting  Europe  and  Asia  with  concrete  policy  proposals  and  initiatives  to  improve 
connections between Europe and Asia, including through interoperable transport, energy and 
digital networks.4 This Communication is also part of the EU contribution for the 12th Asia-
Europe  Meeting  (ASEM)  in  October  2018,  which  will  offer  the  opportunity  to  promote 
connectivity and advance cooperation with Asian partners. 

This  Communication  should  be  read  together  with  the  Commission's  proposal  for  the  next 
Multiannual Financial Framework5 that sets clear priorities, which have been further clarified 

1 See 2016 Figures, available at http://trade.ec.europa.eu/doclib/docs/2011/january/tradoc_147207.pdf  
2 Connectivity is defined in the Chairs’ Statement of the 13th ASEM Foreign ministers meeting in Na Pyi Taw, 
Myanmar, on 20-21 November. 
3 Asia Development Bank, Meeting Asia’s Infrastructure Needs, 2017 
4 The importance of connectivity for prosperity is recognised in the European Commission’s ten priorities, the 
global strategy on EU foreign and security policy and the European Consensus on Development. 
5  Communication  ‘A  Modern  Budget  for  a  Union  that  Protects,  Empowers  and  Defends  —  The  Multiannual 
Financial Framework for 2021-2027’, COM(2018) 321.  

1 

 
 
                                                            
in  recent  Communications  of  the  Commission6  whilst  providing  for  means  to  promote  and 
support private investments globally.  

2.  The European way: sustainable, comprehensive and rules-based connectivity 

The EU has been a driver for internal connectivity over the last decades. Through the creation 
of the internal market, the EU enabled the free flow of people, goods, services and capital. 
EU-wide  rules  -  such  as  EU  state  aid  control  and  procurement  rules  -  ensure  fair  and 
transparent competition, whilst  Union policies also ensure environmental protection, safety, 
security,  as  well  as  social  and  individual  rights.7  In  the  same  vein,  the  EU  also  promotes  a 
circular  economy,  low  greenhouse  gas  emissions,  and  a  climate  resilient  future  in  order  to 
attain the Sustainable Development Goals (SDGs) and the targets set out in the Paris Climate 
Agreement.  These  policies  have  encouraged  investment  in  cross-border  connectivity,  based 
on a clear Trans-European Network (TEN) with well-identified priorities and standards. The 
citizens, as users of connectivity and businesses benefit from the ability to rely on efficient 
pan-European  infrastructure,  free  and  fair  competition,  and  common  standards.  The  EU 
internal market has led to increased productivity and competitiveness and can be a source of 
inspiration globally.   

EU's  connectivity  policies  aim  at  promoting  efficiency  in  the  EU  single  market  and 
enhancing  connectivity  on  a  global  scale,  with  emphasis  on  people's  benefits  and  rights. 
These  objectives  are  supported  by  policies  on:  sustainable  development,  decarbonisation, 
digitalisation, investment, innovation and global leadership. 

The EU experience enables it to promote an approach to connectivity, which is sustainable, 
comprehensive and rules-based:  

  Sustainable  connectivity.  To  drive  productivity  and  create  growth  and  jobs, 
connectivity investments need to ensure market efficiency and be fiscally viable. To 
respond to the challenges of climate change and environmental degradation, it has to 
promote  decarbonisation  of  the  economy  and  respect  high  standards,  based  on 
environmental  impact  assessments.  To  further  social  progress,  it  needs  to  adhere  to 
high  standards  of  transparency  and good  governance  and  give  a  voice to  the  people 
affected  by  the  projects,  based  on  appropriate  public  consultations.  Connectivity 
policies  should  reduce  negative  externalities,  such  as  environmental  impact, 
congestion,  noise,  pollution  and  accidents.  In  short,  connectivity  has  to  be 
economically, fiscally, environmentally and socially sustainable in the long term. 

  Comprehensive  connectivity.  Connectivity  is  about  networks,  and  the  flow  of 
people, goods, services and capital that pass through them. This means transport links, 
by air, land or sea. It means digital networks, from mobile to fixed, from the internet 
backbone to the last mile, from cables to satellites. It also means energy networks and 
flows, from gas, including liquified natural gas, to electricity grids, from renewables 

6  Communication  ‘Africa-Europe  Sustainable  Investments  and  Jobs  Alliances’,  COM(2018)  643  and 
Communication ‘Towards a more efficient financial architecture for investments outside the European Union’, 
COM(2018) 644.  
7 The obligation of conducting environmental impact assessments for infrastructure projects was first introduced 
in EU legislation in 1985. The precautionary principle, the prevention principle, the principle that environmental 
damage  should  be  rectified  at  source  and  the  polluter  pays  principle  should  apply.  See  the  Treaty  on  the 
Functioning of the European Union, Art. 174(2). 

2 

 
 
 
                                                            
 
to  energy  efficiency.  Synergies  between  the  three  sectors,  sometimes  leading  to 
innovative  and  new  forms  of  connectivity,  should  be  optimised.  Connectivity  has  a 
crucial human dimension and people’s interests and rights should be at the core of any 
policy. 

  International  rules-based  connectivity.  Rules  and  regulations  are  required  for 
people,  goods,  services  and  capital  to  move  efficiently,  fairly  and  smoothly. 
Internationally agreed practices, rules, conventions and technical standards, supported 
by international organisations and institutions, enable interoperability of networks and 
trade across borders. In its internal market, the EU guarantees non-discrimination and 
a level playing field for enterprises and promotes an open and transparent investment 
environment while protecting its critical assets8. The EU should continue to promote 
open  and  transparent  procurement  processes  where  companies  should  enjoy  a  level 
playing field.  

On that basis, the EU will engage with its neighbours and Asian partners along three strands:  

  First, by contributing to efficient connections and networks between Europe and Asia 
through priority transport corridors, digital links and energy cooperation at the service 
of people and respective economies.  

  Second,  by  establishing  partnerships  for  connectivity  based  on  commonly  agreed 
rules  and  standards  enabling  a  better  governance  of  flows  of  goods,  people,  capital 
and services.  

  Third,  by  contributing  to  address  the  sizeable  investment  gaps  through  improved 
mobilisation  of  resources,  reinforced  leveraging  of  EU’s  financial  resources  and 
strengthened international partnerships. 

3.  Building efficient connections between Europe and Asia 

To  further  strengthen  the  efficiency  of  existing  and  future  connections,  the  Union,  together 
with its partners, should address the transport, energy and digital links between Europe and 
Asia,  while  taking  into  consideration  the  rapid  technological  change,  which  has  a  strong 
impact on connectivity. While addressing the physical connections between Europe and Asia, 
the  EU  and  its  partners  should  also  encourage  connectivity  and  mobility  amongst  students, 
academics, and researchers. 

3.1. Transport 

Both the Asian partners and the Union have an interest in developing efficient, economically 
viable and environmentally sustainable trade routes and corridors between Europe and Asia. 
Today, measured in value, 70% of the trade goes by sea, over 25% is carried by air, while rail 
remains relatively marginal. The potential for growth in all sectors is substantial. 

The  EU  should  enhance  the  transport  connectivity  together  with  its  neighbours  and  Asian 
partners.  The  EU  should  work  towards  connecting  the  well-developed  Trans-European 
Network  for  Transport  (TEN-T)  framework  with  networks  in  Asia.  TEN-T  comprises 
clear  priorities  and  standards  to  promote  cross-border  and  interoperable  multi-modal 
transport, i.e. a combination of rail, sea and inland waterways. To achieve this objective, the 

8  Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing  a  framework  for 
screening of foreign direct investments into the European Union (COM(2017) 487). 

3 

 
 
 
 
                                                            
EU  could  offer  technical  assistance  as  appropriate  to  help  its  partners  plan  their  transport 
systems  and  ensure  their  interconnection  and  contribute  to  financing  of  infrastructure  as 
appropriate  (see  part  4).  New  methods  to  assess  the  levels  of  connectivity,  for  instance 
connectivity indices, will help identify gaps and opportunities. The EU should also contribute 
to make transport connectivity with Asia more secure. 

Connectivity and security 

The world depends increasingly on sophisticated data networks and transfers, energy connections, 
perfectly timed value chains and the  mobility of people. Managing  these flows  means finding the 
right balance between facilitating  them  and ensuring their safety and security. In an  era of hybrid 
threats  and  terrorism,  ‘flow  security’  matters.  Access  to  trade  routes  remains  dependent  on  an 
adequate  political  and  security  environment  and  is  subject  to  addressing  challenges,  such  as 
transnational  organised  crime  and  any  kind  of  illicit  smuggling  and  trafficking,  cybersecurity  and 
attacks on transport and energy security. These challenges cannot be addressed solely through the 
internal or external policies of countries or entities. The EU should engage with partner countries to 
make transport connectivity with Asia safer and more secure, in particular in area of cybersecurity.  

  Air transport 

EU aviation agreements with third countries create new economic prospects by opening up 
markets and promoting investment opportunities. To enable the growth of air transport to the 
benefit  of  citizens  and  businesses  from  EU  and  from  partner  countries,  the  EU  is  currently 
negotiating aviation agreements with several countries in the EU neighbourhood and Asia.9 
In  doing  so,  the  EU  also  addresses  the  environmental  and  climate  impact  of  aviation,  in 
particular  the  issue  of  aviation  emissions.  The  EU  will  continue  to  support  within  Europe, 
Asia  and  beyond,  the  necessary  long-term  decarbonisation  of  air-transport,  including 
through  promoting  the  effective  implementation  of  international  agreements10  and  through 
targeted activities to build capacity in partner countries.  

  Sea transport  

The EU supports clean and sustainable shipping by developing EU-wide policy measures and 
engaging  in  the  environmental  efforts  including  those  of  the  International  Maritime 
Organisation  (IMO).  As  part  of  its  strategy  to  decarbonise  transport,  the  Commission  will 
further  promote  the  use  of  alternative  fuels  in  ports  in  Europe  and  Asia.  By  continuing  to 
engage with third countries in Asia through pertinent maritime transport agreements it will 
help  to  regulate  and  facilitate  maritime  traffic.  To  speed  up  customs  formalities,  it  should 
promote its initiatives to digitalise and simplify administrative formalities at ports in Asia.11 
The EU should also encourage the wider adoption of the Rotterdam rules, which would make 
the use of electronic documents in shipping easier.12 To strengthen maritime security, the EU 
should  propose  additional  measures  and  continue  to  support  international  efforts,  including 
via the IMO. The EU should continue to develop the bridging role of the Black Sea basin.  

9 Negotiations have been finalised with Armenia and are ongoing with ASEAN, Azerbaijan, Turkey and Qatar. 
The  Commission  has  initialled  a  Common  Aviation  Area  agreement  with  Ukraine,  a  bilateral  aviation  safety 
agreement with China and is negotiating one with Japan. 
10 ICAO agreements. 
11  Communication  ‘Strategic  goals  and  recommendations  for  the  EU’s  maritime  transport  policy  until  2018’, 
COM(2009) 8). 
12 The UN Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea (2008). 

4 

 
 
 
 
                                                            
  Land transport 

In  the  rail  transport  sector,  the  EU  should,  together  with  its  partners,  work  towards 
increasing  the  competitiveness  of  rail  connections  by  reducing  the  transit  times  and 
improving the load factors.  The EU has extended the Trans-European Network for Transport 
(TEN-T) to Western Balkans countries, and recently agreed on the extension of the TEN-T 
with  six  Eastern  partnership  countries  (Armenia,  Azerbaijan,  Belarus,  Georgia,  Moldova, 
Ukraine).  Both  the  North-South  rail  connections  13  and  the  East-West  rail  connections14 
could  play  an  important  role  in  the  future.  The  EU-China  rail  connection  in  particular  has 
been  experiencing  strong  growth.  The  challenges  for  the  long-term  economic  viability  and 
competitive  neutrality  of  this  rail  connection  would  need  to  be  addressed.  The  EU  is 
supporting the Unified Rail Law initiative of the United Nations Economic Commission for 
Europe (UNECE) that is seeking to unify the legal regime for the carriage of goods by rail 
across the Eurasian continent. The EU will work with relevant rail transport organisations to 
extend application of the EU’s technical specification and safety management frameworks.15 
For  Euro-Asian  connectivity,  road  transport  usually  makes  sense  over  medium  distances 
(such  as  to  Central  Asia)  and  as  a  secondary  transport  network  in  combination  with  other 
modes  of  transport.  Moreover,  ensuring  adequate  social  conditions  to  workers  in  the  sector 
and  fair  competition  between  road  transport  undertakings  are  key.  In  its  engagement  with 
Asian countries, the EU should focus on promoting road safety by sharing best practices and 
the  most  suitable  solutions  to  reduce  road  fatalities  and  injuries.  The  EU  will  also  help 
promote the exchange of customs information, develop cooperation on transit both bilaterally 
and through the World Customs Organisation (WCO).  

3.2. Digital connectivity 

High capacity network links are critical to support the digital economy. Backbone network 
links  with  Asian  and  other  third  countries  will  contribute  to  a  fully  meshed  network, 
providing  the  required  bandwidth  and  other  quality  criteria  for  this  increasingly  critical 
infrastructure.  Universal  and  affordable  access  to  internet  is  a  proven  enabler  of  socio-
economic development.  

In its relations with Asian countries, the EU should promote a peaceful, secure and  open ICT 
environment,  while  addressing  cybersecurity  threats  and  protecting  human  rights  and 
freedoms  online,  including  personal  data  protection.  A  coherent  regulatory  approach  is 
needed  to  support  private  and  public  investment  in  the  ‘digital’  infrastructure16  as  well  as 
policies  and  incentives  to  bridge  the  digital  divide,  particularly  in  remote  regions  or  land-
locked countries. To this end, the Union will pursue, as appropriate, its Digital4Development 
strategy17  in  Asia  promoting  digital  technologies  and  services  to  foster  socio-economic 
development.  

13 The North-South rail connections link the Mediterranean, the Black Sea and the Gulf to the North Sea, the 
Baltic and the Arctic. 
14 The East-West rail connections link the EU to China and Central Asia. 
15  The  Intergovernmental  Organisation  for  International  Carriage  by  Rail  (OTIF)  and  the  Organisation  for 
Cooperation of Railways. 
16 See Communication ‘A Modern Budget for a Union that Protects, Empowers and Defends’, COM(2018)321, 
where the Commission has proposed to promote digital connectivity with Asian and other countries through the 
Connecting Europe Facility for the period of 2021-27. 
17  See  Staff  Working  Document  ‘Digital4Development:  mainstreaming  digital  technologies  and  services  into 
EU Development Policy’, SWD( 2017) 157. 

5 

 
 
 
                                                            
3.3. Energy connectivity 

The  liberalisation  of  the  EU  energy  market  coupled  with  renewables  and  energy  efficiency 
2020  targets  and  the  energy  union  strategy  have  spurred  a  market-driven  transformation 
towards  clean  energy.  They  have  resulted  in  a  more  decarbonised  and  interconnected 
electricity network, which is crucial for competition and a key enabler for the integration of 
variable renewable energy. Based on its experience, the EU should promote regional energy 
connectivity  platforms  that  focus  on  market  principles,  encourage  modernisation  of  the 
energy  system  and  the  adoption  of  clean  (decentralised)  solutions,  energy  efficiency  and 
support energy connectivity both between and with partners in Asia. 

3.4. People to people connectivity 

Connectivity  and  mobility  amongst  students,  academics  and  researchers  is  key  to  mutual 
understanding and economic growth. Since 2014, different programmes have financed the 
mobility  of  over  18000  students,  researchers,  and  staff.  The  EU  should  further  strengthen 
student and academic exchanges with Asian countries through the Erasmus programme, the 
Marie Skłodowska Curie actions, mutual recognition of diplomas, and regional exchange of 
researchers  and  innovators.  The  EU  should  encourage  city-to-city  cooperation,  including 
interaction between the EU Capitals of Culture and their counterparts in Asia, and increase in 
the mobility of artists and cooperation in sports. 

Key actions for Chapter 3 

The Commission will: 

  Develop  a  methodology  to  assess  the  levels  of  sustainable  connectivity  in  Europe 

and Asia and its economic impact within the EU and its regions. 

  Promote  the  exchange  of  data  for  customs  and  digital  transport  corridors  and 

assess risks. 

  Pursue  Air  Transport  Agreement  negotiations  with  the  Association  of  Southeast 
Asian  Nations  (ASEAN),  Azerbaijan,  Turkey  and  Qatar,  and  sign  Bilateral  Air 
Safety Agreements with People’s Republic of China (China) and Japan. 

  Promote  agreements  on  the  decarbonisation  of  transport  in  international  fora,  in 

particular in aviation and maritime sectors. 

  Promote  the  digitalisation  and  administrative  simplification  of  maritime  transport 
in Asia and the Black Sea countries as well as the adoption of the Rotterdam rules. 
  Explore  the  possibility  of  extending  the  mandate  of  the  EU  TEN-T  corridor 
coordinator(s) to the Enlargement and Neighbourhood region within the envisaged 
review of the TEN-T regulation which needs to be completed by 2023. 

  Work on standards for ethical use of forward looking technologies such as Artificial 
Intelligence and promote full compliance with responsible state behaviour online. 
  Further  promote  Erasmus  and  the  Marie  Skłodowska  Curie  actions  in  Asia  and 
related  reciprocity  arrangements  to  increase  opportunities  for  exchange  and 
mobility. 

6 

 
 
 
 
 
 
 
 
 
 
4.  Building international partnerships for sustainable connectivity 

There  is  a  diverse  range  of  actors  and  dynamics  setting  the  parameters  for  cooperation  in 
sustainable  connectivity.18  To  pursue  connectivity  effectively  the  EU  should  strengthen  the 
existing  and  further  build  new  bilateral,  regional  and  international  partnerships  that  are 
sustainable, open, inclusive and rules-based.  

4.1. Bilateral cooperation 

The EU is a major development and investment cooperation partner in Asia. Development 
dialogues also address investment and sustainable connectivity and should include potential 
cooperation  with  third  countries.  In  this  context,  the  EU  and  its  Asian  partners  can  work 
better together to improve the regulatory environment, public financial management and the 
mobilisation  of  domestic  resources.  The  EU  will  also  offer  its  support,  inter  alia  through 
technical  assistance,  to  strengthen  the  planning  capacity,  to  develop  and  implement 
sustainable  connectivity  projects,  policies  and  regulatory  regimes,  based  on  international 
standards and best practices.  

Bilateral cooperation with individual countries should be adapted to their specific situation. 
For instance, with China, the EU should strengthen the existing cooperation on the respective 
infrastructure  and  development  cooperation  initiatives,  promote  the  implementation  of  the 
principles of market access and a level playing field, as well as rely on international standards 
within  initiatives  on  connectivity.  As  to  Japan,  the  EU  should  coordinate  closely  efforts  to 
promote international standards and regional cooperation in Asia,  notably  by reinvigorating 
the  EU-Japan  transport  dialogue.  In  South-East  Asia,  the  EU  should  continue  the  transport 
dialogue with Singapore started in 2011. 

At the same time, the EU should expand the dialogue on sustainable connectivity with other 
partners including  Afghanistan, India, Indonesia, Iran, Pakistan, Russia, Republic of Korea, 
Turkey, and countries of Central Asia, as well as Australia and the United States. 

Sustainable connectivity 
and EU enlargement and neighbourhood policies 

Connectivity  is  an  important  aspect  of  EU  enlargement  and  neighbourhood  policies.  As 
countries covered by these policies approximate or harmonise their approaches with those 
of the EU, sustainable connectivity is gradually being introduced in their legislation.  

In  the  context  of  the  EU  new  Western  Balkans  policy,19  the  Commission  has  recently 
launched flagship initiatives for increased connectivity and a Digital Agenda for the region. 
Also,  the  Sofia  Declaration  of  the  May  2018  EU-Western  Balkans  Summit  pledges  to 
substantially  increase  connectivity  in  all  its  dimensions:  transport,  energy,  digital,  and 
human20. An action plan for investment in transport in the Eastern Partnership  countries is 
currently being prepared in addition to the recent engagement to step up cooperation in the 
area of digital economy.  

18 See Joint Staff Working Document SWD (2017) 436, ‘Euro-Asian Connectivity Mapping Exercise — Main 
Findings’ on the various connectivity initiatives pursued by EU partners. 
19 Communication ‘A credible enlargement perspective for and enhanced EU engagement with the Western 
Balkans’, COM(2018) 65. 
20  Sofia  Declaration 
declaration_en.pdf. 

(May  2018).  Available  at:  http://www.consilium.europa.eu/media/34776/sofia-

7 

 
 
 
                                                            
In  this  context,  the  Commission  will  ensure  that  sustainable  connectivity  is  more  widely 
taken  into  account  in  EU  enlargement  and  neighbourhood  policies  and  promote  further 
technical  and  regulatory  convergence  in  this  field.  It  will  also  provide  further  assistance 
with  the  implementation  of  public  procurement  legislation  and  promote  transparency  and 
best practices. 

4.2. Regional cooperation  

The EU has experience in establishing regional cooperation structures, such as those around 
the  Baltic  Sea  region.  Working  with  its  partner  countries,  international  organisations  and 
financial institutions, the EU should consider developing regional connectivity cooperation 
approaches  for  Asia,  providing  an  analysis  of  connectivity-related  activities  in  specific 
regions,  connectivity  gaps  and  opportunities  for  cooperation  to  support  the  EU-Asia 
connectivity. 

Asia counts several international organisations and mechanisms with mandates touching upon 
connectivity.21  The  nature  of  EU  involvement  with  these  organisations  depends  on  their 
activities  and  scope  of  action.  ASEM  is  an  important  platform  for  collaborating  with  key 
Asian partners. The EU should continue strengthening its cooperation with ASEAN, a central 
player  in  connectivity  in  Southeast  Asia,  in  support  of  the  Master  Plan  on  ASEAN 
Connectivity  2025  and  the  convergence  of  standards  within  it,  including  via  the  ongoing 
transport dialogue.22 Finally, the EU should also promote regional cooperation on sustainable 
connectivity as a key aspect of its Central Asia strategy. 

4.3. International cooperation  

International cooperation has a central role in determining the legal frameworks and concrete 
forms that connectivity takes. It plays an important role in strenghtening the sustainability of 
these frameworks, as demonstrated by the recent EU ocean governance initiative. 

Ocean governance 

The EU is committed to the freedom of navigation and a sustainable governance of oceans and seas. 
In  November  2016,  a  Joint  Communication23  proposed  50  actions  for  safe,  secure,  clean  and 
sustainably  managed  oceans  around  the  world,  seeking  ‘ocean  partnerships’  with  key  players. 
Together with the World Bank, the EU devised a ‘Blue Economy Development Framework’ which 
will help coastal states, regions and communities make the transition to blue economies by setting 
up a financial blending mechanism for public-private partnership investments over 30 years.  

International  organisations24  develop  international  agreements  and  standards,  the 
enforcement  and  recognition  of  which  is  required  to  fight  against  climate  change, 

21  Including  ASEM,  ASEAN,  the  Bay  of  Bengal  Initiative  for  Multi-Sectoral  Technical  and  Economic 
Cooperation,  Central  Asian  Regional  Economic  Cooperation,  the  South  Asian  Association  of  Regional 
Cooperation, South Asia Subregional Economic Cooperation and the Shanghai Cooperation Organisation. 
22 When relevant,  the  EU  could  engage  at  technical  level with  the Eurasian  Economic  Union and  its Member 
States,  with  the  aim  of  achieving  closer  convergence  of  their  technical  regulations  and  standards  with  the 
international ones. 
23 Joint Communication ‘International ocean governance’, JOIN(2016) 49. 
24  Including  the  Organisation  for  Economic  Cooperation  and  Development,  UNECE  and  its  Inland  Transport 
Committee;  in  rail  transport,  OTIF  and  OSJD;  in  energy,  the  International  Energy  Agency  and  International 

8 

 
 
 
 
 
                                                            
 
environmental  degradation,  to  promote  market  access,  free  and  fair  trade  and  to  ensure  the 
interoperability  of  networks.25  Commonly  adopted  international  standards  provide    for 
technical harmonisation enabling for interoperability of the different networks. International 
and  European  Standardisation  Organisations26  are  essential  partners  of  the  EU,  ensuring 
technical  harmonisation  in  Europe  and  Asia,  based  on  a  consensus-based  elaboration  of 
industry-led standards. The Commission will work with these organisations and the relevant 
industries to review the need for connectivity-related standards. The Commission will expand 
the provision of technical assistance and coordinate more closely with relevant international 
organisations and foreign partners to secure the commitment of key third countries for those 
standards  and  their  wider  adoption.  Overall,  the  EU  should  strengthen  its  engagement  with 
international  organisations  and  strengthen  its  external  representation,  participation  and 
coordination. 

Key actions for Chapter 4 

The Commission will: 

  Step  up  cooperation  with  relevant  third  countries,  including  in  EU-China 
Connectivity  Platform,  to  promote  the  digital  economy,  efficient  transport 
connectivity  and  smart,  sustainable,  safe  and  secure  mobility,  based  on  the 
extension of the TEN-T network, and promote a level playing field in investment.  
  Support  sustainable  connectivity  in  policy  and  development  dialogues  with  third 

countries. 

  Deepen cooperation with relevant regional organisations in Asia and pilot regional 

connectivity cooperation approaches for Asia. 

  Cooperate  with  European  and  International  Standardisation  Organisations  and 
their national members in view of efficient and joint development of the necessary 
technical  standards,  including  through  targeted  technical  assistance  and  technical 
cooperation. 

  Work with United Nations Economic Commission for Europe (UNECE) to unify the 
legal  regime  for  the  carriage  of  goods  by  rail  across  the  Eurasian  continent,  and 
with the Intergovernmental Organisation for International Carriage by Rail (OTIF) 
and the Organisation for Cooperation of Railways (OSJD) to extend the application 
of the EU's technical specifications and safety management frameworks. 

5.  More and better investment in sustainable connectivity 

Globally, investment needs for connectivity are not being met. A World Bank study suggests 
that the poorest countries have, proportionally speaking, the highest needs (12.5 per cent of 
GDP  on  average)  and  the  largest  gaps  (7.5  per  cent  of  GDP)  in  infrastructure  spending.  A 

Renewable Energy Agency. Other key organisations with a global mandate would include the IMO, ICAO, ITU 
and the ILO for social rights. 
25  Including,  but  not  limited  to,  the  UNECE  Convention  on  Access  to  Information,  Public  Participation  in 
Decision-making  and  Access  to  Justice  in  Environmental  Matters  and  the  UNECE  Espoo  Convention  on 
Environmental Impact Assessments and its Protocol on Strategic Environmental Assessments. 
26  The  International  Electrotechnical  Commission,  the  International  Organisation  for  Standardisation  and 
International Telecommunication Union; the European Committee for Standardisation, the European Committee 
for Electrotechnical Standardisation and the European Telecommunications Standards Institute. 

9 

 
 
 
 
 
 
                                                                                                                                                                                         
comprehensive  approach  to  finance  is  needed  to  address  this  sizeable  investment  gap.  This 
starts with better domestic resource mobilisation, pricing models for the use of infrastructure, 
and  regulatory  frameworks.  This  is  true  for  Asia  as  well,  where  regional  disparities  are 
wide.27   

5.1. New and innovative EU financing for connectivity  

This  Communication  does  not  aim  at  establishing  an  investment  plan,  although  the  EU's 
existing and future financial instruments could offer some perspectives for supporting private 
investment in connectivity-related projects.  

The  EU  already  has  a  solid  track  record  in  financially  supporting  connectivity.28 
Geographical investment facilities, such as the Neighbourhood Investment Facility (NIF), the 
Investment  Facility  for  Central  Asia  (IFCA)  and  the  Asia  Investment  Facility  (AIF),  have 
been  providing  financing  and  technical  assistance  for  infrastructure  and  connectivity.  The 
Asia Investment and Central Asia Investment facilities alone, have leveraged more than EUR 
4.2  billion  of  investments  between  2010  and  mid-2018  through  blending  of  grants  and 
loans.29  The  Investment  Plan  for  Europe  also  presents  concrete  opportunities  for  co-
investments in Europe. 

For  the  next  multiannual  financial  framework  (2021-2027),  the  Commission  has  proposed 
several  innovative  measures  that  could  spur  public  and  private  investment  in  connectivity. 
The  Commission  proposal  notably  includes  an  investment  framework  for  external  action, 
building on the current European Fund for Sustainable Development30 (which is part of the 
EU’s  External  Investment  Plan  and  applies  to  Africa  and  the  Neighbourhood),  to  provide 
financing to catalyse additional public and private capital. While its primary focus will be on 
Africa  and  the  EU’s  Neighbourhood,  part  of  its  resources  will  also  be  devoted  to  other 
geographical areas.  

Moreover,  the  Commission  supports  all  efforts  to  render  the  institutional  and  operational 
framework for the EU's external investments even more effective and operational, to respond 
to our main investment challenges. A recent Communication of the Commission31 highlights 
the need for international cooperation to be able to rely on a combination of funding sources, 
especially  by  crowding  in  more  private  investment,  stressing  the  need  to  make  the  most  of 
existing  instruments,  starting  with  the  European  Fund  for  Sustainable  Development.  The 
Communication  also  calls  on  the  main  financial  and  development  institutions  active  in 
development financing to strengthen their cooperation. 

27 Inderst, George (2018), ‘Infrastructure Investment, Private Finance, and Institutional Investors: Asia from a 
Global Perspective’, Asian Development Bank Institute. 
28 Between 2014 and mid-2018, the Western Balkans Investment Facility has leveraged around EUR 2.4 billion 
of investments in connectivity, whereas the Neighbourhood Investment Facility has leveraged around EUR 2.9 
billion of investments in connectivity in Eastern partner countries. 
29 For example, the EIB contributes with € 70 million to Central Asia South Asia Electricity Transmission and 
Trade  Project  (CASA-1000),  which  enables  electricity  transmission  between  Kyrgyzstan,  Tajikistan  with 
Afghanistan and Pakistan.   
30 Regulation (EU) 2017/1601 of the European Parliament and of the Council of 26 September 2017 establishing 
the European Fund for Sustainable Development (EFSD), the EFSD Guarantee and the EFSD Guarantee Fund. 
31 Communication from the Commission to the European Parliament, the European Council, the Council and the 
European Investment Bank. Towards a more efficient financial architecture for investment outside the European 
Union, COM (2018) 644. 

10 

 
 
 
                                                            
Innovative financing for international cooperation  
in the next multiannual financial framework (2021-2027) 

In  May  2018,  the  Commission  put  forward  its  proposal32  for  the  next  EU  multiannual  financial 
framework, which includes measures to promote investment, including in sustainable connectivity. 
The  Commission  is  proposing  a  new  external  investment  architecture,  with  expanded  global 
coverage,  including  Asia.33  Like  its  predecessor,  it  will  mobilise  public  and  private  financing 
through a reinforced EU guarantee, which may be complemented by grants and loans. If agreed, the 
new architecture will promote further investment, including in sustainable connectivity. A proposed 
expansion  of  the  EU's  research  budget  will  help  the  transition  towards  more  sustainable  forms  of 
connectivity. 

The  EU  should  strengthen  cooperation  with  the  EU  Member  States’  public  and  private 
finance institutions, including sovereign funds and strive towards a closer concertation of 
activities  with  them.  To  promote  sustainable  finance,  the  EU  and  European  lending 
institutions should also improve dialogue with the public and private finance institutions of 
third countries, in line with the Action Plan Financing Sustainable Growth.34 The Action Plan 
is a blueprint for discussions in international fora, aiming at a more sustainable management 
of the financial system. The Commission encourages cooperation on sustainable finance and 
the  exchange  of  best  practices  between  European  banks,  including  public  banks,  and  other 
non-EU  country  banks.  It  will  also  support  corporate  social  responsibility  initiatives  to 
implement international standards for the financing of connectivity-related projects. The EU 
will  support  the  processes  in  the  G7,  G20,  and  OECD,  to  align  lending  practices  of  public 
finance institutions with the principles of sustainable connectivity. 

5.2. International partnerships in finance 

International Financial Institutions (IFIs) and Multilateral Development Banks (MDBs) 
are a central component in the global architecture for financing connectivity. The European 
Investment Bank (EIB), as the EU Bank and investment partner, and the European Bank for 
Reconstruction  and  Development  (EBRD),  have  both  been  expanding  their  lending,  which 
provides new avenues for cooperation. The IMF and the World Bank are important partners 
for  cooperation  in  debt  sustainability  and  connectivity.  The  EU  should  also  deepen  its 
cooperation  with  the  Asian  Development  Bank  (ADB)  and  the  Asian  Infrastructure 
Investment  Bank  (AIIB),  while  ensuring  that  EU  priorities  are  fully  respected  in  these 
relationships.  The  support  of  MDBs  is  essential  in  implementing  the  G20  ‘Roadmap  to 
Infrastructure  as  an  Asset  Class’,  and  a  wider  adoption  of  infrastructure  management 
platforms would help improve the implementation of projects.35 Enhanced coordination of the 
EU membership within the MDBs should also be pursued. 

32  Communication  ‘A  Modern  Budget  for  a Union  that Protects,  Empowers  and  Defends  —  The  Multiannual 
Financial  Framework  for  2021-2027’,  COM(2018)  321.  The  Commission  Communication  ‘Towards  a  more 
efficient  financial  architecture  for  investments  outside  the  European  Union’,  COM(2018)  644  sets  out  the 
proposed external investment architecture. 
33 See Communication referred above, in footnote 30. 
34 Communication on ‘Action Plan: Financing Sustainable Growth’ COM(2018) 97. 
35  For  example,  for  the  management  platform  SOURCE,  see  the  website  of  the  Sustainable  Infrastructure 
Foundation, https://public.sif-source.org/. 

11 

 
 
 
 
 
 
                                                            
5.3. A level playing field for business 

The  key  prerequisites  for  businesses  to  develop  and  promote  EU-Asia  connectivity  are 
adequate  level  playing  field  in  market  access  and  foreign  direct  investments;  fairness  and 
transparency  in  public  procurement;  non-discriminatory  market  practices;  and  balanced  the 
protection  of  intellectual  property  rights.36  Strong  macroeconomic  and  fiscal  stability 
frameworks,  sound  sector  policies  and  reforms,  comprehensive  annual  and  medium-term 
fiscal  and  budgetary  frameworks  and  sound  public  financial  management  systems  are 
therefore essential. The EU will continue to support initiatives ensuring level playing field for 
business. A wider accession to the Agreement on Government Procurement (GPA) of the 
WTO would be a concrete step forward. The swift adoption of the Commission proposal on 
the International Procurement Instrument37 would encourage partners to join and to be more 
forthcoming on market access commitments. The EU should continue to encourage partners 
to use of the quality criteria and lifecycle cost in public procurement procedures. Achieving a 
level  playing  field  will  also  require  improving  the  transparency  of  export  credit  systems. 
Discriminatory practices should be eliminated. The International Working Group on Export 
Credits  should  establish disciplines to  ensure a level playing field  between  exporters of the 
different countries.  

The EU intends to step up its efforts in economic diplomacy38 in Asia. It intends to support 
platforms for matching European and Asian businesses, with a focus on SMEs and envisages 
creating a Business Advisory Group for Euro-Asian connectivity. The EU should continue to 
promote  its  European  Investment  Project  Portal  (in  the  future,  InvestEU  Portal),  which 
enables visibility on investment opportunities in EU to all interested investors.  

Key actions for Chapter 5 

The Commission (and where appropriate the High Representative) will: 

  Facilitate  investment  for  Euro-Asian  connectivity  through  the  investment  facilities 
and guarantees, involving European public banks (EIB, EBRD and Member States' 
national banks and institutions), and IFIs, in line with international standards and 
level-playing field. 

  Step up the EU's cooperation on investment with the Asian Development Bank and 

the Asian Infrastructure Investment Bank. 

for  enhanced 

  Establish a Business Advisory Group for Euro-Asian Connectivity.  
  Press 
transparency  of  public  procurement 

in  Euro-Asian 
infrastructure,  including  through  wider  accession  to  the  WTO  Governement 
Procurement  Agreement  and  the  adoption  of  GPA  standards  and  support  to  the 
establishment of dedicated public procumenet  websites. 

36 Report from the Commission to the European Parliament and the Council on Trade and Investment Barriers, 
1 January 2016 to 31 December 2016. 
37  Commission  proposal  for  a  Regulation  on  the  access  of  third-country  goods  and  services  to  the  Union’s 
internal  market  in  public  procurement  and  procedures  supporting  negotiations  on  access  of  Union  goods  and 
services to the public procurement markets of third countries, COM (2016) 34. The proposal is currently under 
consideration by the European Parliament and the Council. 
38 The Commission’s Reflection paper on harnessing globalisation, COM(2017) 240. 

12 

 
 
 
 
 
 
 
                                                            
6.  Conclusions 

This Joint Communication provides the basis for an EU strategy on connecting Europe and 
Asia.  The  principles  of  sustainable,  comprehensive  and  international  rules-based 
connectivity  inform  this  strategy.  Through  this  approach,  the  EU  will  enhance  regulatory 
quality and level playing field of connectivity, drawing inspiration from its internal market. It 
will contribute to the development of transport, energy and digital networks, on the basis of 
its experience with cross-border connectivity. It will seek to strengthen its partnerships with 
third  countries,  regions  and  international  organisations.  It  will  increase  cooperation  in 
education, research, innovation, culture, sport and tourism, helping to promote diversity and 
the free flow of ideas. To support these different policies and actions, the EU should use all 
levers  and  tools  in  its  financial  framework  to  mobilise  public  and  private  investment  in 
sustainable  connectivity.  A  joint  effort  of  the  EU  and  its  Member  States  for  better 
communicating,  branding  and  marketing  connectivity  projects  and  programmes  with  Asian 
partners will also play a crucial part in the success of the strategy.   

The  Commission  therefore  invites  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee,  the  Committee  of  the  Regions,  the  European  Investment 
Bank  and  relevant  stakeholder  to  discuss  and  support  the  actions  presented  in  this  Joint 
Communication. 

13