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.
Filter results
According to IE University’s Center for the Governance of Change, deeper and more integrated financial markets would strengthen the euro’s global role. This requires, among other elements, resilient and interoperable payment systems and completing the banking union.
Partnerships between banks and private credit: The winners will be those that combine bank underwriting discipline, distribution, and customer access with private capital’s appetite for long-dated, illiquid risk, according to Oliver Wyman.
Lucrezia Reichlin (CEPR): A CBDC is not a prerequisite for monetary sovereignty. Confusing money with payments can risk misdiagnosing the problem and misaligning economic policy efforts.
According to the World Economic Forum´s Global Risk Report 2026, geoeconomic confrontation, mis- and disinformation and societal polarization make up the top three short-term risks, while environmental risks dominate in the long term.
According to the World Economic Forum, over the last few years AI has moved from experimentation to workflow integration, promising systemic gains in productivity while also raising critical questions around economic inclusion, values, trust and resilience.
According to AFME, a clearer, more coherent, and proportionate regulatory environment, without unnecessary layers and focuses on growth and competitiveness, is keyl to increase investor confidence, unlock private capital and deepen European capital markets
According to the Center for the Governance of Change at IE University, Europeans support technological progress if it reinforces security, inclusion, and social welfare; but resist it when change feels imposed, opaque, or misaligned with their values.
According to a recent report released by CEPS, European financial regulators should adopt competitiveness as a formal secondary objective, following the precedent established by the UK's Financial Services and Markets Act 2023.
According to the OECD. SMEs and start-ups that grow rapidly contribute significantly to job creation, economic growth and competitiveness. Indeed, SMEs that grow by one-third over a three-year period, contribute about as much to job creation as large firms.
According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.