Spain and Portugal share a strong economic relationship and a deep historical vocation for openness to the world and international cooperation. Both countries have been in the European Union for four decades and joined the euro since its creation. At the same time, they maintain close historical, cultural and economic ties with countries on both sides of the Atlantic.
In relation to being in a uniquely advantageous position to act as bridges between Europe and Latin American countries, promoting greater economic and financial integration between the two regions. This is especially relevant given the current high geopolitical uncertainty, which can lead to setbacks in multilateralism and losses in efficiency in the global allocation of resources. The recent trade agreement between the , which creates a more integrated market for 770 million people, is a compelling example of the significant potential to strengthen these transatlantic links.
Those of Spain and Portugal maintain a deep relationship with Latin American countries, including a well-established tradition of collaboration in bilateral initiatives and multilateral forums, such as the Center for Latin American Monetary Studies (CEMLA) and the Association of Banking Supervisors of the Americas (ASBA). More recently, the Bank of Spain LatAm Economic Forumwhose first edition brought together, in May, dozens of central bank governors and renowned economists.
Both at the European level and in the relationship with Latin America, the Bank of Spain and the Bank of Portugal intend to play a more relevant role and promote a common agenda. To this end, in recent months we have organized regular high-level meetings (the most recent, this Friday), in which we have analyzed how we can make it more profitable and efficient for citizens. Valuable lessons can also be drawn from this bilateral analysis to strengthen exchanges between Latin America and the Iberian Peninsula, and with the rest of the European Union.
In trade, Spain and Portugal have considerably deepened their relations in recent decades, although there is still significant room for improvement, especially in services. There is still a way to go to achieve greater cross-border productive and financial investment. In the energy field, Spain and Portugal have also achieved great complementarity.
Once this analysis is completed, we will be in a position to propose recommendations to identify and overcome structural barriers to shared prosperity. This is an approach that can also be replicated between the Iberian Peninsula and , helping us to identify and eliminate obstacles to a more complete and profitable integration.
Our exchanges also extend to: we have shared, for example, experiences in the application of measures based on the payment capacity of borrowers for mortgage and consumer credit (Portugal) and in the calibration of the countercyclical capital buffer (Spain).
In the technological field, we have promoted (AI) and analyzed the importance of digital sovereignty. New developments in AI models and quantum computing accentuate the need to share action plans that reinforce the operational resilience of a highly interconnected Iberian financial system.
The possibilities do not end here: payment systems, regulatory simplification, financial education, fight against fraud, among other areas. The Bank of Spain and the Bank of Portugal are also willing to promote greater cooperation and integration of the financial systems of Latin America and Europe. If we know how to take advantage of our strengths, the Iberian Peninsula can become an engine of this transatlantic connection, promoting greater cooperation and economic integration, as well as the prosperity of our towns and citizens.
