The Spanish newspaper 20 Minutos has recently published an article by our president, Núria Vilanova, titled “Certidumbre en la incertidumbre” (Certainty in Uncertainty). As we step into 2023, Latin America is facing a range of problems due to the crisis. However, it is also overflowing with opportunities that offer a glimmer of certainty in these times of global uncertainty. A strategic alliance between the EU and Latin America, led by Spain, can not only help us open up these windows of opportunity but also develop them as a catalyst for the future of both regions.
«During a recent meeting with the presidents of companies and business families comprising the Business Council Alliance for Ibero-America (CEAPI), which he chairs, Pablo Hernández de Cos, governor of the Bank of Spain, highlighted some very positive surprises in the Latin American economy at the end of the last year.
During a recent meeting with the presidents of companies and business families that comprise the Business Council Alliance for Ibero-America (CEAPI), Pablo Hernández de Cos, the governor of the Bank of Spain, who also chairs the organization, highlighted some very positive developments in the Latin American economy at the end of last year.
One of the surprises that the governor referred to is the improvement in economic policies, which are now being implemented in most of the countries that make up Latin America to combat low growth and high inflation. This is a consequence of the pandemic and the war in Ukraine. Although organizations such as ECLAC predict a regional growth projection of only one-third of the rate achieved in 2022 (an expansion limited to 1.3%) due to the context of uncertainty, the progress highlighted by Hernández de Cos provides a reason for optimism for the future.
As we move into 2023, Latin America has a chance to reclaim its position as a significant global player and a preferred destination for foreign investment, which it has lost in recent decades. Consolidating a strategic alliance between Latin America and the European Union has become more decisive and necessary than ever for both parties. It can play a crucial role in achieving this goal.
Do we face uncertainty? Yes. Are we witnessing political changes? Yes. Does a significant underground economy limit the fiscal margin for public policies? Yes. However, we must recognize Latin America’s vast wealth of raw and energy materials and abundant human capital, which can play an irreplaceable role in the new sustainable technological economy. The pressure on global supply chains, the need for the United States to create closer chains (nearshoring), and access to raw materials make the region strategically important. Furthermore, Latin America’s substantial natural resources, agriculture, and weight in international markets make it an essential component of global food, nutrition, and environmental security.
The role of Spain and Europe in this growth scenario is crucial. We must leverage all our tools, including the Spanish Presidency of the EU and our shared Ibero-American history and culture, to achieve a critical objective: to unite forces with Latin America and create a partnership of enormous significance in the new political and economic landscape shaped by the global crisis.
To achieve this objective, we must become an integral part of Latin America’s growth and emerge as a key and necessary partner in a region where China currently has a strong foothold over the US and Europe. CEAPI aims to contribute to this collaborative effort by providing a platform in the form of the VI Ibero-American Business Congress (scheduled from May 30 to June 1 in Madrid) for the presidents of the leading companies and business families of Ibero-America to exchange ideas and initiatives to promote a stronger partnership between the two regions.
The EU is currently the leading direct investor in Latin America and its third-largest trading partner. The shared commitment to environmental, governmental, and social sustainability sets this relationship apart from others. Europe must seize this opportunity to invest in future sectors that will become platforms for building a more balanced Ibero-American society with modern and competitive economies and sustainable and inclusive production strategies».
To read the full article, originally published in 20 Minutos, click here.
