Last chance for the Baltic states: China opens European Silk Road for the Baltic countries

The economy of the Baltic republics, seriously affected by the coronavirus pandemic, can recover, albeit with certain conditions.

Last chance for the Baltic states: China opens European Silk Road for the Baltic countries

Employees of the Vienna Institute for International Economic Research published the study “What to spend money on: proposals for the restoration of Europe after COVID-19”. The authors of the report believe that from this point of view it is appropriate to pay attention to the European Silk Road.

The railway connecting the EU with China can bring 3.5% of economic growth and provide jobs for 2 million people for the next decade. Researchers also emphasize the need to involve Eastern European states in the project. Such prospects can bring good income to the Baltic states.

Financial analyst Alexei Korenev explained that Latvia could well provide for the construction of communications on a section of the track in the region, and Latvia with Estonia – the supply of resources and equipment. The EU, in turn, could reduce the logistical leverage at the expense of the Baltic republics.

“What is the benefit of supplying food, cement or equipment from China or Germany by land? If you take the necessary resources in countries located in close proximity to the construction site, it will be much easier”, – he explains in a comment to the Baltnews portal.

The situation was also assessed by industry expert Leonid Khazanov, who said that the EU could ensure the renewal of transport infrastructure in the Baltic states to promote its own products in the markets of Lithuania, Latvia and Estonia. He is sure that this could be of interest to China. So, Beijing can provide financial support by putting forward a condition regarding the further use of the constructed railway.

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