We are experiencing a period of intense, profound change on the international stage, as the strategic alliances and institutions that have guided the world for the last half-century are being called into question. Conflicts that once seemed resolved 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, the European Union is building bridges. They are reaffirming their 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” – they strengthened their bond. The reasons for doing so were obvious. We know that, together, they can ensure a safer, more democratic world and promote fairer, 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. They account for one-third of all United Nations members and share one of the world’s strongest alliances, rooted in 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 this partnership, they can go from amplifying to multiplying their impact on the emerging international order.
The European Investment Bank (EIB) is playing a key role in strengthening this relationship. Throughout 45 years of work in Latin America and the Caribbean, they 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-sized enterprises and micro-enterprises, and promoting female entrepreneurship.
They 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, they will have reached a record level of EIB financing in the region, with the final figure exceeding $3bn. That includes contracts just signed in Santa Marta for solar energy in Colombia and water sanitation in Ecuador – projects that will benefit more than 2.5mn people. They have also announced a new $1.15bn programme to support electricity interconnections in Central America.
In parallel with the Santa Marta summit, the EIB is playing an active part at the concurrent United Nations Climate Change Conference (COP30) 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 they are doing: 70% of their investments in Latin America and the Caribbean are allocated to climate action.
At a time when many countries and political leaders are taking steps back and looking inward, the EU and the EIB’s commitments to multilateralism and the green transition are stronger than ever.
These are challenges that they can solve only if they work together. That is why their discussions in Santa Marta also focused on strengthening co-operation 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 shared goals. If they continue to move forward in the spirit of partnership that was on display in Santa Marta, reinforcing their alliances and strengthening their friendships, shaping the international order for the better is well within our reach. — Project Syndicate
