Spain-Portugal: Strategic axis for EU-LatAm integration
Governors Escrivá and Pereira highlight Spain and Portugal's strategic role as bridges for economic and financial integration between Europe and Latin America. Their joint article in El País emphasizes the unique cultural and economic ties.
Iberian bridges to Latin America
Spain and Portugal, with their unique cultural and geographical proximity, strong economic ties, and historical openness, are uniquely positioned to bridge Europe and Latin American countries.
This role is crucial amid current geopolitical uncertainties that threaten multilateralism and global resource allocation efficiency.
The recent EU-Mercosur trade agreement, creating a market for 770 million people, exemplifies the potential for strengthening these transatlantic links.
The central banks of both nations maintain deep relationships with Latin American countries, fostering collaboration through initiatives like CEMLA and ASBA, and recently hosting the Banco de España LatAm Economic Forum, which gathered numerous central bank governors and economists.
This collaboration aims to promote greater economic and financial integration between the regions.
Deepening bilateral and digital cooperation
The Bank of Spain and the Bank of Portugal are actively pursuing a common agenda to deepen their economic integration, drawing lessons for broader exchanges between the Iberian Peninsula and Latin America. While bilateral trade has grown, significant potential remains in services, labor mobility, and cross-border investment.
The central banks also share experiences in financial stability, including borrower-based measures for mortgage and consumer credit, and the calibration of countercyclical capital buffers.
They promote investment in artificial intelligence and analyze digital sovereignty, emphasizing shared action plans to bolster the operational resilience of their interconnected financial system.
A blueprint for transatlantic ties
The joint article underscores a proactive stance by Iberian central banks to leverage their unique position.
While the vision is ambitious, concrete steps like regular high-level meetings and shared experiences in financial stability provide a solid foundation.
This initiative could serve as a practical model for fostering deeper economic and financial integration across the Atlantic.