SNAPSHOT2 min read

The bright lights emerging in European infrastructure

We expect infrastructure investment to be a key tool in restarting European economies after Covid-19, especially as the under-investment in some key areas is clear.



Charles Dupont
President, Schroder aida

Infrastructure is the backbone of economies around the world. Could we imagine a modern society without roads, ports, airports, electricity, water and gas networks? Numerous studies have been able to show the correlation between the performance of an economy and the quality of its infrastructure.

As the world sinks into crisis post Covid-19, we believe boosting economies by investing in transport, energy and the environment makes perfect sense. And there is no shortage of opportunities in Europe.

A number of studies have demonstrated that Europe, and France in particular, have long neglected the maintenance of strategic infrastructure, at times with tragic outcomes.

France: infrastructure scores versus the world


France score

(max 100)

Global ranking

(141 economies worldwide)

Transport infrastructure



Road connectivity



Quality of road infrastructure



Railroad density  km/1.0km2



Efficiency of train services



Airport connectivity



Efficiency of air transport services



Seaport/shipping connectivity



Efficiency of seaport services



Utility  infrastructures



Access to electricity (% of the population)



Electricity supply quality (% of output)



Exposure to safe drinking water (% population)



Reliability of water supply



Source : The Global Competitiveness Report 2019, Global Economic Forum.

Infrastructure also reflects the changes in our society. Current events and politics provide us with ever more examples of their strategic nature in tomorrow's world. How do we deliver energy transition against climate change? The answer lies in the construction of sustainable energies; wind power, especially offshore wind power, as well as solar farms, but also the modernization of our electricity grids and the construction of gas infrastructures capable of managing the intermittency of renewable energies. It is also in the installation of smart meters to make users more responsible for their consumption.

The period of lockdown we have just gone through has also shown our dependence on digital infrastructures, fibre networks and relay antennas, and highlighted the "digital deserts". Geopolitical tensions have demonstrated the importance of data centre locations. Locating these centres closer to users could preserve digital security.

Finally, in the very short term, the health crisis may also lead us to rapidly strengthen the equity capital of infrastructure companies, particularly in the transport sector, which, due to a lack of users, have suffered losses in recent months and thus seen their equity capital melt away.

Emergency measures, guaranteed loans and deferred charges, have provided them with the liquidity they need to survive and get through the crisis, but at the same time have increased their debt. Many of them will have to undertake a rapid capital increase to maintain their solvency at an acceptable level. These are all opportunities for infrastructure funds to support economies, support strategic companies and build the world of tomorrow.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.


Charles Dupont
President, Schroder aida


Infrastructure Finance
Private Assets
Private Asset Solutions
Europe ex UK

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.