EU to invest 45,000 million euros in Latin America and the Caribbean

This is an automated translation of the original release published in Spanish.

Release from the Development Bank of Latin America CAF

(July 17, 2023). The European Commission announced an investment of 45,000 million euros to take relations between the EU and Latin America and the Caribbean to another level. The new cooperation and investment agenda will focus on projects ranging from the production of clean hydrogen or the expansion of the high-performance data cabling network to the production of more advanced mRNA vaccines.

“Latin America and the Caribbean have a lot to contribute to the present and future of Europe. In the same way, Europe has the capacity to contribute to our region as a whole, thinking about the benefit of citizens and the planet”, said Sergio Díaz-Granados, executive president of CAF - development bank of Latin America and the Caribbean - one of the organizations that is actively promoting relations between the EU and the region, and that has identified 67 national and regional initiatives to carry out European investment.

Among the examples of investment projects in which CAF will participate are those related to bringing connectivity to 85% of Colombians by 2026, hydrogen production in Chile and Uruguay, sustainable mobility in San José, Quito, Bogotá, Montevideo and São Paulo, the spread of renewable energy in Jamaica, and water and sanitation projects to combat chronic child malnutrition throughout Ecuador, among others.

The agenda of the Global Gateway (the EU investment and cooperation platform at a global level) will focus on Latin America and the Caribbean in the fight against climate change, the promotion of renewable energies, digital services, electromobility and a new role for natural resources, with technology transfer and strengthening of agro-industry.

“We are interested in seeing relations between Europe and Latin America and the Caribbean reach their full potential. We share a common interest in seeing our industries grow, develop global value chains and have more and more people in the middle class. We do not want relations to be purely commercial, but we want to grow together," said Von der Leyen, President of the European Commission.

“To take advantage of the opportunities, it is necessary for the regions to deepen our trade agreements and our economic integration. I can confirm that the progress in the ratification of the European Union agreements is very close and this has a lot to do with the leadership of the presidency of the European Commission and we are therefore confident that it will occur during this semester of the European presidency,” said Pedro Sánchez, president of the Government of Spain.

“It is companies, universities and civil society that breathe life and continuity into relations between different countries. This meeting confirms that our entrepreneurs are fully committed to relaunching this historic alliance based on the certainty that the success of one of the parties is essential for all," said Luiz Ignacio Lula da Silva, President of Brazil.

“The new agenda of the European Union for Latin America and the Caribbean arises at a time when our region is developing in areas that are critical for the future of the entire planet. Latin America is now perfectly positioned to be part of the solution to the world's biggest challenges, including climate change, food insecurity and the protection of biodiversity. By working more together, the public and private sectors in our regions can make this opportunity a reality,” said Ilan Goldfajn, President of the IDB.

CAF is developing innovative financial instruments such as guarantees, insurance, financial coverage and debt swaps for nature conservation, and a better use of special drawing rights, and for this it is expanding its alliances with key players such as the European Central Bank and European directors at the International Monetary Fund.

“Latin America and the Caribbean have a proven ability to propose profitable and high-impact ideas, solutions and paths of action. Europe and Latin America and the Caribbean are compatible in their values, their vision of development and their understanding of the world. We are a common product of history. Our struggles for democracy and social movements go hand in hand. We live a shared essence”, concluded Díaz-Granados.