Serbia and the Backbone of Europe: Importance of the Danube for Serbia, Europe, and the United States


Traditional Importance of the Danube is Gaining New Momentum

The Danube River, stretching 2,857 kilometers across Europe, serves as an economic and environmental artery for more than 115 million people in 14 countries.

The Danube River has historically been a key civilizational corridor in Europe, serving as the northern frontier of the Roman Empire with major military and trade centers like **Singidunum (Belgrade), Viminacium, and **Aquincum (Budapest) along its banks. It acted as a strategic military boundary and a vital logistics route for Roman legions and goods. In the Middle Ages, the Danube continued to connect Western Europe with the Balkans and Byzantium, facilitating the movement of grain, salt, and timber, and supporting diplomacy and trade.

In the 19th century, the Danube’s role intensified with the introduction of steam navigation and the establishing of the **European Commission of the Danube (1856)**—a groundbreaking step in international governance. This made the Danube one of the first rivers to be managed multilaterally, decades before the emergence of institutions like the European Union. The importance of governing the Danube River comes even more into focus, with the fact that this is the first international organization in the world. Thus, from ancient times to modern geopolitics, the Danube has remained central to transport, defense, commerce, and cultural exchange, shaping the integration and stability of Central and Southeastern Europe.

The new momentum in Danube’s importance has been acquired since the Black Sea ports were blocked during the Ukraine war, with the Danube becoming a lifeline for Ukrainian grain exports—around 40 million tonnes shipped via ports like Izmail and Reni under the EU’s Solidarity Lanes initiative. The Port of Constanța in Romania has gained renewed importance, handling over 5 million tonnes of Ukrainian grain in the first nine months of 2024, following targeted EU-backed upgrades. Looking ahead, the Danube is expected to serve as a major logistics corridor for Ukraine’s post-war reconstruction, enabling the transport of materials via inland waterway while strengthening broader regional connectivity.

Governing the River: Institutional Frameworks of Danube Cooperation

Serbia’s Governance

Within its borders, Serbia manages the Danube through a structured institutional framework and strong public-private partnerships. Key governmental entities include the Port Governance Agency (AUL), responsible for port oversight and cargo operations, and Plovput, managing navigation safety, fairway maintenance, and River Information Services (RIS). Local harbor master offices administer day-to-day navigation and permissions.

Serbia’s Danube ports, notably Luka Beograd and **DP World Novi Sad**, are critical logistics hubs currently undergoing modernization and expansion, supported by specialized logistics companies (Enpeks, Rhenus Serbia, Kuehne+Nagel, AgentPlus) providing extensive cargo and fleet services.

Serbia deeply integrates its Danube governance with international bodies and cross-border frameworks. Serbia adopts EU Water Framework Directive standards and participates in cooperative initiatives. Its national waterway administration, Plovput, marked its 60th anniversary in 2023 at a major regional event where Danube Commission and River Information Services stakeholders met, demonstrating strong regional integration.

Through membership in the Danube Commission and active participation in expert groups, Serbia collaborates closely with Austria, Hungary, Croatia, Romania, Bulgaria, and Ukraine on navigation standards and hydro-technical works. These engagements reflect a high degree of success and alignment with transnational standards and shared infrastructure, positioning Serbia as a proactive and effective Danube stakeholder, though challenges remain in funding and coordinating full EU integration.

International Institutional Framework

Acknowledging its growing strategic importance, the European Union launched the EU Strategy for the Danube Region (EUSDR) in 2011. This initiative functions as a macro-regional framework to coordinate development and cooperation across national borders.

The EUSDR brings together 14 countries—from Germany and Austria in the west to Ukraine and Moldova in the east—and focuses on resolving shared challenges such as water pollution, flood risks, incomplete transport infrastructure, and fragmented energy connectivity. Importantly, the EUSDR is not a funding mechanism itself but instead aligns existing EU instruments like Cohesion Policy, Interreg, Horizon, and the Connecting Europe Facility with national and regional budgets.

Investments and Projects - A Sectoral Overview

Transport

The Danube, as Corridor VII of the TEN-T network, has long suffered from shallow waters and outdated infrastructure. EU and national investments—via CEF, Cohesion Fund, and IPA—now focus on improving navigability, building ports and bridges, and boosting multimodal connectivity. These efforts aim to position the Danube as a key corridor for sustainable freight and regional integration.

Key projects include:

Project

Financing

Who Financed

Short Summary

Goal of the Project

Rhine–Main–Danube Canal (Germany, 1992)

€2.3 billion

German federal government with EU policy support

171 km canal linking North Sea to Black Sea with 16 locks and environmental measures

Enable year-round barge transport and strengthen European inland navigation

Vidin–Calafat New Europe Bridge (Bulgaria–Romania, 2013)

€282 million (€106 million EU Cohesion Fund)

EU Cohesion Fund, EIB, national funds

1,971-meter road-rail bridge replacing a ferry bottleneck

Enhance cross-border mobility and regional trade

FAIRway Danube (2015–2021)

€23.4 million

EU Connecting Europe Facility (CEF)

Navigation harmonization across 7 countries with surveying, gauging, and WAMOS system

Boost navigation safety, efficiency, and data coordination

FAIRway Danube II (2023–2027)

€70 million (€47 million EU CEF)

EU Connecting Europe Facility (CEF)

Adds depth monitoring, adaptive engineering, and mooring upgrades

Modernize navigation and improve climate resilience

Green Port Giurgiu (Romania, 2017–2020)

€15.6 million (€13.3 million EU TEN-T/CEF)

EU TEN-T/CEF, national co-financing, private investment

Built a trimodal terminal with green standards, increasing capacity fivefold

Develop a sustainable and efficient Danube port

Sunken WWII Vessels Removal at Prahovo (Serbia, 2022–2025)

€30 million (€16 million EU WBIF grant)

EU WBIF, Serbian government, EIB support

Removing 21 German WWII shipwrecks at Iron Gates gorge

Clear a major navigation bottleneck and reduce environmental risk

Serbia Inland Waterway Modernization (2018–2025)

€474 million

EIB loan, EU WBIF grants

Modernizing Danube–Sava waterway with dredging and port upgrades

Boost freight traffic and align with EU standards

Energy Sector

The Danube remains vital for hydropower and cooling, but its role as an energy corridor is expanding. Countries now cooperate on pipelines, grid links, and renewables under EUSDR PA2, supported by major EU funds and financial institutions. The region has become key to both energy security and the green transition.

Key projects include:

Project

Financing

Who Financed

Short Summary

Goal of the Project

**Iron Gate Hydropower Plants (Romania–Serbia)**

N/A (modernization partly EU/KfW-funded)

Romania/Yugoslavia (initial); EU, KfW (modernization)

2,532 MW bilateral dams from the 1970s; crucial for electricity and navigation; now undergoing ecological upgrades.

Maintain generation while improving environmental performance (e.g. fish passages).

**Gabcikovo–Nagymaros Project (Slovakia, partial)**

State-funded; later EU-aligned upgrades

Slovak state; ecological improvements under EU

720 MW Gabcikovo dam completed; Hungary withdrew. Now includes wetland and turbine upgrades.

Balance energy and flood control with environmental protection.

Kozloduy NPP Decommissioning (Bulgaria)

Approx. €900 million

EU (KIDSF), EBRD

Shutdown of 4 nuclear units with EU support; includes district heating and energy efficiency upgrades.

Ensure nuclear safety and aid clean energy transition.

BRUA Gas Pipeline – Phase 1

€479 million (€179M CEF, €100M EIB, €50M EBRD)

EU CEF, EIB, EBRD, Romania

479 km gas pipeline linking Romania to Danube interconnectors and enabling diversified supply.

Strengthen energy security and enable regional gas flows.

Trans-Balkan Electricity Corridor

€200 million (€20M WBIF, €80M KfW, others)

WBIF, KfW, EIB, national governments

Grid integration across the Balkans with Romania–Serbia link; expanding toward the Adriatic.

Facilitate electricity trade and integrate renewables.

Energy Barge Project (2017–2019)

€2.32 million (€1.65M ERDF)

Interreg DTP, ERDF

Biomass barge logistics network and digital platform; promoted low-emission fuel supply chains.

Enable climate-friendly biomass transport via the Danube.

The Danube remains vital for hydropower and cooling, but now also serves as a key energy corridor for cross-border electricity and gas links. Through EUSDR Priority Area 2 and EU funding, countries collaborate on pipelines, grid integration, and renewables. The region is central to Europe’s energy security and green transition.

Environmental Sector

The Danube River Basin is an ecologically critical area, home to rare species and essential resources for millions. Decades of pollution and river engineering have degraded its habitats, but since the 1990s, coordinated efforts—especially through the ICPDR and EUSDR Priority Areas 4 and 5—have advanced restoration. EU and national projects now target wastewater treatment, pollution reduction, and biodiversity protection.

Key projects include:

Project

Financing

Who Financed

Short Summary

Goal of the Project

EU Urban Wastewater Investments (2000s–2020s)

€3.5 billion annually (e.g. €528M Budapest plant, 65% EU-funded)

EU Cohesion Fund, national co-financing

Wastewater infrastructure upgrades in cities like Budapest, Bucharest, Sofia, Zagreb, Novi Sad, etc.

Reduce water pollution and improve Danube water quality by treating municipal sewage.

Danube Pollution Reduction Program (1997–2003)

$90 million

GEF, EU PHARE, national sources

Basin-wide pollution control with over 100 infrastructure projects and the first water quality assessments.

Control pollution and align with future EU water management directives.

Lower Danube Green Corridor (since 2000)

Over €214 million

National budgets, EU PHARE, WWF

Protected and restored wetlands along the Lower Danube in 4 countries, covering over 1,000 km².

Restore biodiversity, protect habitats, and enhance natural flood mitigation.

Danube Floodrisk (2009–2012) & Danube Floodplain (2018–2020)

€5.8M (Floodrisk), €3.67M (Floodplain)

EU South-East Europe Programme, Interreg DTP

Created flood hazard maps and promoted floodplain restoration across 12 countries.

Improve flood risk management through green infrastructure and harmonized planning.

Iron Gates Ecological Improvements (ongoing)

Approx. €7 million

EU IPA Cross-border, national partners

Ecological mitigation around Iron Gates dams, focusing on fish migration and turbine improvements.

Restore fish migration routes and balance hydropower with biodiversity protection.

EU programmes have transformed sewage treatment, while basin-wide coordination under EUSDR ensures upstream and downstream alignment. Though challenges remain, the river is now significantly cleaner and more resilient.

The Role of the Three Seas Initiative In Unlocking the Danube’s Potential

Earlier mentioned, FAIRway Danube is the only Danube‑focused project under 3SI that has been fully implemented. It modernized hydrological monitoring, signaling systems, electronic mapping, and water‑level forecasting across six countries: Austria, Slovakia, Hungary, Croatia, Bulgaria, and Romania. National administrations received survey vessels, sensors, and pilot channel rehabilitation works, all funded by the EU’s Connecting Europe Facility. This effort produced a safer, more efficient, and environmentally friendlier Danube transport corridor, built on a harmonized digital monitoring platform (WAMOS).

Other important discussed projects include the Danube-Black Sea Canal and Danube-Oder-Elbe Canal, both envisioned as the “missing links” to fully connect the three seas, which the initiative bears the name. Unfortunately, the projects have not commenced yet, but they present one more argument backing the Danube’s importance.

Given the fact that the 3SI’s engagement in maximizing the Danube’s strategic potential remains limited, further action is needed. Giving more attention to the river, the 3SI accomplishes its key interests:

  • Post‑war Ukraine recovery: The river is central to the “Solidarity Lanes” grain export corridor, and strengthening its navigation infrastructure can aid both humanitarian supply chains and reconstruction logistics.

  • Strategic autonomy vs Belt & Road: For 3SI to offer a European alternative to China’s Belt & Road Initiative, it must prioritize inland waterways—not just roads, rail, and energy—by pushing canal ambitions into funded projects.

  • Energy resilience & climate adaptation: Acting not only as a transport artery, the Danube also supports hydropower, grid interconnectivity, and sustainable logistics—crucial for a low-carbon, secure Europe.

Enhancing Strategic Awareness of the Danube: Policy Pathways for Domestic and International Stakeholders

Decision-makers in Serbia and across Europe should attach greater importance to the Danube, given its proven value for transport, energy, ecology, and tourism highlighted in this analysis. Above all, its geostrategic relevance will only increase as the war in Ukraine moves toward its end. Recommended actions include:

  • Launch an annual “Danube Future Forum” in Belgrade: Host ministers, port authorities, shippers, financiers, and think-tanks from all 14 Danube countries to showcase data on trade flows, climate resilience, energy corridors, and the river’s pivotal role in the EU-Ukraine “Solidarity Lanes.” The event would institutionalize Serbia’s convening power and keep momentum behind river-focused projects.

  • Create an international working group “Danube Vision Task Force”: This Task Force would design shovel-ready projects, digital twinning of the fairway, hydrogen-ready green ports, autonomous barge pilots, and funnel them toward Cohesion Policy, Interreg, Horizon, and CEF calls. Its remit: turn strategy into bankable pipelines.

  • Mount a diplomatic campaign toward the Three Seas Initiative (3SI): Present the Danube as the spine that can connect 3SI’s north-south corridors to Black Sea grain routes, and position Serbia for associate-member status or observer rights. This would inject a river dimension into 3SI’s €111 billion priority list and attract new capital for fairway and energy upgrades.

  • Embed Ukraine as a core partner in Danube modernization: Establish a Serbia-Ukraine “Danube Logistics & Energy Working Group” to integrate Solidarity Lanes traffic into long-term infrastructure (e.g., deeper Sulina channel, shared RIS data, joint port security drills). This amplifies Serbia’s relevance to post-war reconstruction logistics.

  • Intensify outreach across every Danube framework where Serbia already sitsICPDR, Danube Commission, EU Strategy for the Danube Region (EUSDR), Danube Region Programme / Interreg, and the Sava Commission, would all be suitable places for Serbia to voice the renewed role of the Danube in the future years.

  • Pursue targeted bilateral diplomacy with influential non-riparian states—the US, France, the United Kingdom, and Poland—to secure co-investment in climate-proof river infrastructure, leveraging their blue-economy funds and export-credit agencies.

Date:
July 9, 2025

Authors:
Aleksa Jovanović, Pupin Initiative
Petar Ivić, Pupin Initiative

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