On the occasion of the Spanish Presidency of the Council of the European Union (EU), the Government of Spain and CAF -development bank of Latin America- will promote a meeting between the 60 ministers of economy and finance from both continents, with the aim of aligning interests, synchronising development agendas, strengthening geopolitical ties and boosting trade relations between Europe and Latin America and the Caribbean. The event will take place within the framework of the meetings of the Eurogroup and the informal Economic and Financial Affairs Council of the European Union (ECOFIN) to be held in the north of Spain, specifically in Santiago de Compostela (Galicia).
Nadia Calviño, Spain's First Vice-President and Minister for Economic Affairs and Digital Transformation, who will chair the summit of ministers, said that "since joining the EU, Spain has intensively promoted relations with Latin America, a continent that is an ally of the Union with shared values and interests, which will be clearly demonstrated at this summit where we hope to give political impetus to issues of mutual interest and attract European investment in strategic areas such as the ecological transition, digital transformation, education and health".
"The first meeting of EU Ministers of Economy and Finance with Latin American and Caribbean countries is a unique opportunity to strengthen economic, trade and political ties between the EU and Latin America and the Caribbean, and should help the two regions to address major global challenges such as the green transition, economic recovery and digital transformation. This joint work will help us find innovative solutions, new financing mechanisms and more opportunities for integration between the two regions," said Sergio Díaz-Granados, Executive President of CAF.
At the request of the Spanish Presidency of the European Union, the identification of projects throughout Latin America and the Caribbean will be promoted in which European institutions can participate together with multilateral financial institutions in transnational investment projects to promote the integration of the continent's economies. In principle, these projects would focus on green transition, digital transformation and basic social services (education and health).
CAF has set itself the goal of becoming the region's green bank to promote green growth through greater positioning and financing of environmental, forestry, energy, agricultural, climate and water projects. To this end, it will allocate USD 25 billion to green finance over the next five years, which will increase its green operations from 26% today to 40% by 2026. This includes USD 1.25 billion for ocean conservation.
As a sign of support for this new strategy, CAF's Board of Directors and Assembly approved by consensus, in March 2022, a historic capitalisation of USD 7 billion, which will double the portfolio by 2030 and, with it, promote equitable and inclusive economic reactivation, more actively support subnational governments, foster regional integration, strengthen the role of the private sector and promote alliances with national development banks.