Two regions with a shared future. To reinforce this message with concrete announcements, as a dozen heads of state participate this Sunday in debates to produce the official declaration of the fourth summit between the 27 countries of the European Union (EU) and the 33 countries of the Community of Latin American and Caribbean States (CELAC), the Colombian city of Santa Marta, the Caribbean port that serves as the venue of the meeting, hosts in parallel the business forum convened by the EU, the Government of Colombia, the CAF and the IDB Group.
“We need each other,” recalled Sergio Díaz-Granados, executive president of the CAF-Development Bank of Latin America and the Caribbean, opening the event in his hometown. The event, he recalled, takes on particular importance since it is the first time that the EU-CELAC summit is held in the Caribbean. Evoking another illustrious Caribbean compatriot, the writer Gabriel García Márquez, he recalled that this region must be understood in its rich diversity. We need to bring the two blocs closer together and expand the relationship, underlined the lawyer from Samaria.
“We live in a much more fugitive world,” recognized Díaz-Granados, underlining this situation as a “unique opportunity” to build a relationship with mutual interests, around axes such as the green transition in one of the regions most vulnerable to climate change, the energy transition, interconnection with clean and renewable energies, the consolidation of a large and ambitious trading bloc or alliances between different development banks. “The rapprochement and expansion of our regions constitutes a commitment of several generations”, he underlined.
This alliance must “transcend trade and investments”, assured the Colombian Trade Minister, Diana Morales, inviting us to build together a vision of fair trade that includes territories and the popular economy in a new model that responds to “more horizontal” forms of cooperation. Government official Gustavo Petro welcomed the “heart of the world,” echoing how the president is wont to refer to the Sierra Nevada de Santa Marta – and by extension all of Colombia – for its spiritual significance to the indigenous Kogi. “This forum is not just a space for dialogue, but a platform for action and commitment,” he underlined.
“We want to be at your side. And not in any way. We are committed to creating quality wealth, in a way that respects people and territories, with local communities, beyond short-term strategies”, underlined the Executive Vice President for a clean, fair and competitive transition of the European Commission, Teresa Ribera. “We have worked together and on both sides of the Atlantic we have identified innovative and pioneering programmes, projects, investments, solutions, goods and services that benefit our economies and our societies,” the Spaniard said, pointing to two specific examples: a digital tool for physiotherapy in Brazil that is changing the treatment of Portuguese patients or European companies connecting remote communities in the Amazon.
Europe is the third trading partner and the largest investor in Latin America and the Caribbean, Ribera recalled, announcing that the EU is able to invest in several key interconnection projects. “Together we have identified more than 20 priority projects, for a total of around seven billion euros of investments,” he explained. In Colombia, European investors have identified 170 renewable energy projects of more than 30 gigawatts, he said with a nod to the host country.
“We are natural partners. We have come a long way together. And here in Colombia we have a unique opportunity,” confirmed Nadia Calviño, President of the European Investment Bank (EIB). The two regions represent more than a billion people, 14% of the world population and 21% of the planet’s GDP, he recalled. Together with the Commission and the European Council they will announce a €1 billion package to promote energy integration in Central America. It also included signing $200 million for a solar photovoltaic project in Colombia, and investing another $100 million in Ecuador for water, sanitation and waste management. “Europe is a beacon right now for the world,” Calviño said. “A beacon of trust, stability, respect and democratic values. And in this summit, we have the opportunity to strengthen our strategic alliance with the countries of Latin America and the Caribbean that share these values, which are also a beacon for the world in this moment in which we live.”
Over the last sixty years, the region’s average annual growth has been 1.8%, recalled economist Ana María Ibáñez, vice president of Sectors and Knowledge of the Inter-American Development Bank. “We have to grow more and we have everything to grow more,” said the Colombian. Growth is the key to reducing poverty, he stressed. “The central challenge is to create more formal employment,” he added in his diagnosis. “Our vision is of two regions working together to increase the dynamism and innovation of the private sector,” he added. From the IDB, he underlined, it is believed that the agreement between the EU and Mercosur “can be a powerful tool for a more productive insertion, with greater innovation, with greater sustainability and added value for all countries of both regions”.
Two investment announcements were made as part of the summit. The day before, CAF made official its decision to allocate $40 billion to promote green growth in Latin America and the Caribbean over the next five years, a commitment to climate action, the energy transition and the protection of biodiversity in the region. This news also comes as the massive United Nations climate change conference, COP30, takes place in Belém de Pará, in the Brazilian Amazon.
