Western Europe Still Treats Us Like Children: On the Three Seas Initiative’s Tenth Anniversary

Western Europe still does not treat the Three Seas countries as equal partners, despite the initiative demonstrating its maturity and significance on Europe’s economic map. “We must not allow that catching up with Western infrastructure would take another hundred years”, says Beata Daszyńska-Muzyczka, the Ambassador for the Three Seas Initiative, as she emphasizes the necessity for further investments and collaboration. The interview touches upon the core issues facing the region, including challenges in relations with the West and the infrastructural needs, as well as the groundbreaking projects orchestrated by the Three Seas Initiative, discussed during the Energy Security in Central and Eastern Europe 2024 conference.

The Three Seas Initiative will celebrate its tenth anniversary in 2025. How would you summarize the current state of this project?

Ten years is both a lot and a little. Compared to the Visegrad Group, which has existed for over 30 years, the Three Seas Initiative is relatively young. Nevertheless, the initiative has gained recognition in political and business circles, both in member states and throughout Europe and the world.

The majority of the Three Seas countries were part of the former Eastern Bloc, and this origin still influences their geopolitical perception. Despite being a part of the EU for over 20 years, our region still struggles with historical stigma.

The Three Seas Initiative responds to challenges arising thereof and aims to enhance the role of this part of Europe through economic and infrastructural development along the North-South axis.

Is Western Europe beginning to better understand the needs of the Three Seas region?

I often compare our relationship with Western Europe to that of a parent with an adult child. When we joined the EU, we were treated somewhat condescendingly – as if we were children, requiring guidance and advice.

After 20 years, however, we are saying: “We have grown up. We know what we want and have our own initiatives and goals that serve both the region and Europe”.

Western Europe still does not treat us as equal partners and such a treatment clashes with our expectations. For many Western countries, it was difficult to accept the emergence of an entity that demonstrates our – Central and Eastern European – ambitions. The Three Seas Initiative is created by countries that know what they want to achieve and strive to shape the EU’s future on an equal footing with others. This is a new dynamic that the West must understand and accept.

What would you name as the most significant achievement of this project?

At the heart of the Three Seas Initiative lie regular presidential summits, which show that there is engagement and interest in the project at the highest political level. Even during challenging times like the COVID-19 pandemic, the initiative maintained its momentum.

The summit in Tallinn was held remotely during the strictest lockdown, showcasing the participants’ determination. By contrast, the Visegrad Group experienced a seven-year hiatus in full leadership meetings.

Another challenge was Russia’s full-scale invasion of Ukraine in 2022, which could have disrupted regional cooperation. However, the Three Seas Initiative not only stood fast on its objectives but also confirmed its credibility as a key link in supporting Ukraine.

I would name the establishment of the Three Seas Fund in 2019 as a landmark achievement. It demonstrates that development institutions can create an international financial vehicle and that the region is attractive for investment.

The first investments began in February 2020, at the very beginning of the pandemic. Within a year of signing the agreement with the investment advisor, over 300 projects were analyzed, and five key concepts were selected for implementation. The Fund’s main investment areas are energy, digitalization, and transportation.

Examples include leasing cargo locomotives through CargoUnit to support regional logistics and the dynamic development of the port in Burgas, Bulgaria. In energy, the Fund invested in photovoltaic farms through companies like Enery and R.Power, which operate in over 7 countries and thus accelerated the energy transition.

Whereas in Estonia the Fund supported the establishment of one of the most eco-friendly data centers in the region, Greenergy, which is capable of efficiently managing data across the Three Seas region.

The total value of these investments exceeds 6 billion euros to date, with a rate of return reaching 12–15%. This demonstrates the Fund’s effectiveness in attracting and efficiently investing capital. Notably, the U.S. partook in the Fund with the International Development Finance Corporation’s investment of 300 million dollars, which thus highlighted the initiative’s significance.

However, the beginnings were challenging. Many investors perceived the Fund as political and our region continues to be classified by many as being of higher risk compared to Western European countries.

International financial analysts still view our countries as part of the former Eastern Bloc. There is much work ahead to ensure that we are treated as full members of the European Union, which we already are.

What is your assessment of the Fund’s results so far?

As a definite success! Starting with its creation in record time – just eight months from the start of work – while similar international funds usually take around 2–3 years. We managed to make the first investments already within a year of the Fund’s establishment.

What are the biggest challenges associated with it?

Their scale is considerable. The early years were particularly difficult due to the challenging political environment and the skepticism of the investors.

The issue is not the lack of projects, since there are indeed many of them in this region – over 300 projects have been identified for the Fund alone. It is a bustling region with great potential, but we need more resources and capital for investments.

Initially, many people in Western Europe treated the Fund with reserve, seeing it as working against the EU goals. I even encountered accusations that the initiative would divide Europe, even though the region’s actual needs far exceed the EU’s financial capabilities within its regular multiannual financial framework.

Our region requires around 650 billion euros by 2030 just to close the infrastructure and quality gaps compared to the infrastructure already in place in Western Europe.

Relying solely on existing EU funds would mean that, in terms of infrastructure, we would constantly be chasing Western countries, which could even take 100 years. Therefore, we must increase the pace of closing these gaps.

What was the volume of investment that the region received in recent years?

Aside from the Fund, which is a commercial undertaking, between 2018 and 2022, Three Seas member states invested around 80 billion euros in the energy, digital, and transportation sectors.

As you can see, we are not passively waiting for private investors but are actively building the necessary infrastructure. Projects include the development of roads, railways, digitalization, and energy systems. A list of priority public projects can be found on the Three Seas Initiative website

Such engagement demonstrates that the Three Seas countries invest in their own development and create stable foundations for future private investments. Infrastructure is key, as private investors expect the right conditions, such as roads and railways and they wait for the state to build them before any other investment can take place.

Large infrastructure projects are at the heart of the Three Seas Initiative because their implementation attracts capital and strengthens the region.

What about the development of infrastructure projects like Via Carpatia or Rail Baltica?

Via Carpatia has gained momentum – you can already travel through Poland along this route, although delays are still visible in places like Slovakia. Rail Baltica is also progressing, though at different speeds depending on the country.

Delays are often due to concerns from some Western European countries, which see the development of infrastructure in the eastern part of the continent as a potential threat to their economic dominance.

Yet, in fact, all of Europe will benefit from the development of these corridors – a stronger and better-connected region will enhance the European economy as a whole. To achieve this we must promote cooperation between Central and Eastern Europe and Western Europe, which will combine Western experience and capital with the dynamism and potential of the eastern EU countries.

The map of key transport routes in Europe. Source: European Commission.

How is this cooperation developing in the energy sector?

Among the priorities of the Three Seas Initiative are investments in energy security, including the construction of gas and energy interconnectors. Examples include the connection between Poland and Lithuania and the Poland-Slovakia gas interconnector.

LNG ports, such as those in Świnoujście and the floating terminal on Krk Island, are also of great importance, along with the development of gas connections with Romania, which is becoming a regional leader in this field thanks to its vast gas reserves.

The energy market situation highlights the importance of these investments. Drastic price increases, at times soaring to 17,000 euros per megawatt-hour, expose gaps in European energy policy.

Germany, forced to save its industry, is reopening coal and oil power plants, undermining the dogma of reducing CO2 emissions. As a result, Europe exports production to China, strengthening the Chinese economy without delivering real environmental benefits.

How does European competitiveness fare in this context?

Europe, once associated with high-quality industry and specialized agriculture, is struggling with rising energy prices that are fundamental to these sectors. Unlike China or the United States, where economic decisions are made within days or months, the European Union takes years, which results in a loss of competitiveness. While China is building nuclear, coal, and hydrogen power plants, Europe remains trapped in regulations, unable to respond quickly.

This inertia poses a significant challenge to the future of energy and industry on the continent.

Which countries are key players in the Initiative, and which seem more skeptical?

The Baltic States, Croatia, Slovenia, and Romania have actively supported the initiative from the outset. Poland and Romania, as founders of the Three Seas Fund, played a crucial role in its creation.

Bulgaria is also actively participating in projects and, during the Three Seas summit in Sofia in 2021, proposed the idea of the Three Seas Innovation Fund, which aims at preventing brain drain and supporting innovative ideas.

Hungary supports the initiative through its involvement in the Three Seas Fund. Slovakia, while highly active in the beginning, now seems less engaged. The Czech Republic participates passively in the Three Seas Fund project, and its activity is also limited.

Austria remains a neutral observer, perhaps waiting to see the initiative’s development and its ultimate direction.

What about Greece, the newest member of the Three Seas Initiative?

Greece is a new member of the Three Seas Initiative with significant business and infrastructure potential. Thanks to its strategic location and access to key maritime corridors, it could play a crucial role in North-South connections, especially since Via Carpatia ends in Thessaloniki.

This natural link is advantageous for both transport and business development. Greece is still getting acquainted with the format and the opportunities provided by the Three Seas Initiative, but its involvement could bring significant benefits to the entire project.

It is worth mentioning strategic partners, such as the United States. Has their support for the Three Seas Initiative wavered in recent years?

No, not at all. U.S. support for the Three Seas Initiative remains bipartisan. Both Democrats and Republicans back the initiative, from resolutions passed through Congress to the contributions to the Three Seas Fund, which came, admittedly, after a long and challenging process.

Nevertheless, meetings with congressmen and U.S. ambassadors in the region have always shown their openness to cooperation.

From a geopolitical perspective, however, the Biden administration seemed more focused on relations with Berlin, as seen in suggestions to locate the Three Seas office in Berlin or Brussels. For us, such a solution is unacceptable.

The Three Seas Initiative is meant to voice our regional identity and needs, and to understand them, one must be present here. Additionally, I think that the initiative could be an interesting project at the European Parliament level by involving representatives from various countries.

Today, the Initiative has four strategic partners. In addition to the U.S., the European Commission and Germany, Japan joined as a partner at the Vilnius summit this year. Japan is a valuable partner for the Initiative since this Asian country is showing interest in increasing its business presence in the Three Seas region.

Which countries are interested in joining the Three Seas Initiative?

The Three Seas Initiative is constantly gaining interest. Georgia, Azerbaijan, and the Western Balkan countries have expressed the desire to join the project, while Ukraine and Moldova are already associated states.

It is also worth considering inviting Finland as a permanent member, since the inclusion of this country would complete the strategic corridor from Scandinavia to the Peloponnese, thus further strengthening NATO’s eastern flank.

Does funding remain the greatest challenge for the Initiative?

Funding is undoubtedly crucial for the continued development of the Three Seas Initiative, though I would not call it the greatest challenge. It is important to keep securing resources from national budgets and European funds and subsequently to effectively channel them into cross-border infrastructure projects.

The Three Seas Fund has proven its value as a commercial investment tool, paving the way for attracting key financial partners who recognize the region’s potential.

Maintaining the development’s momentum, advancing infrastructure projects, and strengthening international cooperation remain our priorities. Strategic political leadership will also play a crucial role since it is key not only in attracting investors but also in ensuring cohesive action across multiple levels.

The Three Seas Initiative has the potential to become a driving force for Europe’s economic growth, provided that public and private efforts are effectively integrated, including those stemming from strategic partners like Japan and the U.S.

This article was created in collaboration with the Poland with Nature Foundation, a member of the Our Common Home network, as part of the project organizing the conference Energy Security in Central and Eastern Europe 2024. Green Conservatism’s Role in Building a More Competitive EU. The event report is available here.