We are experiencing a period of intense, profound change international stage, with the strategic alliances and institutions that have guided the world for the last half-century being called into question.
Conflicts that seemed to have been overcome are being reignited and leaders coming to power now will shape the world order for decades to come.
Against this backdrop, while some are rushing to build walls, we in the European Union are building bridges. We are reaffirming our commitment to an international order based on democratic values, human rights, mutual respect and win-win partnerships. This was the EU’s message at the recent summit with the Community of Latin American and Caribbean States.
Members of this particular transatlantic community have come a long way together, and in Santa Marta, Colombia – Latin America’s oldest city, colloquially known as “the heart of the world” – we strengthened our bond. The reasons for doing so were obvious. We know that, together, we can ensure a safer and more democratic world and promote fairer and more sustainable development for our societies.
Together, the European Union, Latin America, and the Caribbean represent more than one billion people, 14% of the world’s population, and 21% of global GDP. We account for one-third of all members to the United Nations, and we have one of the world’s strongest alliances, precisely because it is based on a common history, shared values, some of the densest trade networks in the world, and – above all – a will to move forward together. By strengthening it further, we can go from amplifying to multiplying our impact on the new international order that is taking shape.
A record year of EIB financing in Latin America and the Caribbean
The European Investment Bank is playing a key role in strengthening this relationship. Throughout our 45 years of work in Latin America and the Caribbean, we have built enduring relationships of trust, financing more than 350 high-impact projects to boost economic growth, raise living standards, and strengthen communities.
These investments are supporting major energy, transportation, and telecommunications infrastructure projects, improving climate-change adaptation and resilience, supporting small and medium-size enterprises and micro-enterprises, and promoting female entrepreneurship. We have helped fund microloans for women in Brazil; a green hydrogen platform in Chile; electrical interconnections in Colombia, Panama, and Costa Rica; and the construction of sustainable transportation networks such as the metros in Bogotá, Quito, and São Paulo.
By the end of this year, we will have reached a record level of EIB financing in the region, with the final figure exceeding $3 billion. That includes contracts just signed in Santa Marta for solar energy in Colombia and water sanitation in Ecuador, projects that will benefit more than two and a half million people. We have also announced a new $1.15 billion program to support electricity interconnections in Central America.
Joining forces on climate action
In parallel with the Santa Marta summit, the EIB is playing an active part at the COP30 meeting in Brazil, further consolidating its role as a climate bank. The recent losses and catastrophic damage inflicted by Hurricane Melissa in the Caribbean demonstrate the urgency of investing more in prevention and adaptation. And that is what we are doing: 70% of our investments in Latin America and the Caribbean are allocated to climate action.
At a time when many countries and political leaders want to take steps back and are looking inward, the EU and the EIB’s commitments to multilateralism and the green transition are stronger than ever. These are challenges that we can solve only if we work together. That is why our discussions in Santa Marta also focused on strengthening cooperation with the other multilateral development banks active in the region, especially CAF (the Development Bank of Latin America and the Caribbean) and the Inter-American Development Bank.
Such multilateral partnerships are essential to achieving our shared goals. If we continue to move forward in the spirit of partnership that was on display in Santa Marta, reinforcing our alliances and strengthening our friendships, I am convinced that shaping the international order for the better is well within our reach.
This article was first published by Project Syndicate.
