Spain and CAF to Hold Latin American-European Union Finance Ministers Summit

November 08, 2022

Spain—holding the presidency of the EU Council —and CAF will gather the 27 Ministers of Economy and Finance of the European Union and their 33 counterparts from the Community of Latin American and Caribbean States (CELAC) in a meeting to be held in Santiago de Compostela in September 2023. This summit aims to create new transatlantic synergies on key issues such as green transition, inclusive growth, digital transformation and human development. 

Leveraging Spain’s presidency of the Council of the European Union (EU), the Government of Spain and CAF—development bank of Latin America—will advance a meeting with the 60 Ministers of Economy and Finance of both continents, with a view to aligning interests, synchronizing development agendas, strengthening geopolitical ties and reinforcing trade relations between Europe and Latin America and the Caribbean. The event will be held within the framework of the meetings of the Eurogroup and the Economic and Financial Affairs Council of the European Union (ECOFIN) to be held in northern Spain, specifically in Santiago de Compostela (Galicia).

“The first meeting of Economy and Finance Ministers of the EU and Latin American and the Caribbean is an unparalleled opportunity to strengthen economic, trade and political ties between the EU and Latin America and the Caribbean, and should help the two regions address major global challenges such as green transition, economic revival and digital transformation. This collaboration will help us find innovative solutions, new financing mechanisms, and more opportunities for integration between the two regions,” said CAF executive president Sergio Díaz-Granados. 

At the request of Spain’s Presidency of the European Union, the parties will promote the identification of projects throughout Latin America and the Caribbean in which European institutions can participate together with multilateral financial institutions in transnational investment projects to favor the integration of the economies of the continent. In principle, these projects would focus on ecological transition, digital transformation and basic social services (education and healthcare).

CAF, the green bank of Latin America and the Caribbean

CAF has set out to become the green bank in the region to promote green growth through better positioning and financing of environmental, forestry, energy, agricultural, climate and water projects. To this end, it will allocate USD 25 billion over the next five years to green financing, which will grow its green operations from the current 26% to 40% by 2026. This amount includes USD 1.25 billion for ocean preservation. 

As a sign of support for this new strategy, the Board of Directors and the Shareholders’ Meeting of CAF approved by consensus in March 2022 a historic capital increase of USD 7 billion, thus doubling the portfolio by 2030 and promoting economic, equitable and inclusive recovery, supporting sub-national governments more actively, fostering regional integration, enhancing the role of the private sector and advancing partnerships with national development banks.