Instituto Español de Estudios Estratégicos
Revitalizar el espacio inversor iberoamericano con España como puente y país vertebrador con la Unión Europea

Spain as a Bridge Between Latin America and the European Union

The Spanish Institute for Strategic Studies (IEEE) has published a paper by Ramón Casilda Béjar that presents a renewed strategic vision of the economic relations between Spain, Latin America, and the European Union. The report proposes a “New International Economic Policy of Spain toward Ibero-America for the 21st Century,” based on strengthening investment flows in both directions — from Spain to Latin America and from multilatinas to Spain — and on the opportunity to reinforce Spain’s role as a bridge and key connector between the EU and Latin America, a strategy that is particularly relevant in today’s international geopolitical context.

Key Highlights

  • Spain, the Main European Investor in Latin America: Spain has consolidated its position as the leading European investor in Latin America and the second largest globally, behind only the United States.
    In 2022, the stock of Spanish investment in the region reached €160.4 billion, representing 29.3% of Spain’s total foreign investment, with Mexico, Brazil, Argentina, Chile, and Uruguay as the main destinations. Spanish investment has been crucial for the development of key sectors such as banking, insurance, telecommunications, energy, infrastructure, transport, and tourism, while also driving the internationalization of thousands of SMEs (around 6,000 in Mexico alone).
    However, investment flows have slowed down in recent years, as illustrated by Telefónica’s strategic decision to reduce its presence in the region.
  • Multilatinas: Spain as the Gateway to Europe: Currently, over 600 Latin American companies operate in Spain, generating 32,000 direct jobs and accounting for a total investment of €45.7 billion. Spain has become a natural hub for the expansion of multilatinas, providing direct access to the European Single Market, with its 450 million consumers.
    - By country, Mexico leads with €28.4 billion (62% of the total), followed by Argentina (€9.2 billion) and Brazil (€3.1 billion).
  • Geo-Economic Competition with China: China’s presence in Latin America has expanded dramatically: trade between China and the region rose from $2 billion in 2000 to $515 billion in 2024, underscoring its growing influence. Chinese investments — exemplified by the Chancay megaport in Peru — pose a strategic challenge for both Europe and Spain, which need to put forward a more ambitious and sustainable investment agenda. At the Fourth China–CELAC Ministerial Forum (Beijing, May 13, 2025), President Xi Jinping called for deeper cooperation with Latin America in energy, technology, and trade, as well as in clean energy, 5G telecommunications, the digital economy, artificial intelligence, and cybersecurity.
  • Global Gateway and the New EU–CELAC Agenda: The European Union’s Global Gateway strategy aims to mobilize public and private investment in areas such as green energy, digitalization, and education, in order to establish a balanced cooperation framework in the face of Asia’s growing influence and North American protectionism. According to the report, the upcoming EU–CELAC Summit, to be held in Santa Marta on November 9–10, 2025, together with the XXX Ibero-American Summit in Madrid next year, represents a unique opportunity to consolidate Spain’s role as a strategic bridge between Europe and Ibero-America, in a context of increasing global fragmentation, and to redefine the bi-regional agenda in response to emerging global challenges.

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