Amid a global scenario marked by geopolitical conflicts, volatility, and trade tensions, the European Union is accelerating its commitment to Latin America and, in particular, to Mexico. Just days before the modernization of the trade agreement between the EU and the Latin American country and the announcement of a disbursement of 5 billion euros in strategic projects, the president of the European Investment Bank (EIB), Nadia Calviño (A Coruña, 57 years old), visited Mexico City to launch the bilateral roadmap towards 2030. The EU’s financial arm plans to contribute nearly 3 billion euros — 60% of the total committed — to finance energy transition plans, water infrastructure, transportation, loans for small and medium-sized enterprises, among others.
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As part of a high-level agenda, which will include a meeting with Mexico’s president, Claudia Sheinbaum, the former vice president of the Spanish Government has taken the time to address the challenges and opportunities of this renewed partnership between Europe and the second-largest Latin American economy. “The European Union is the second-largest investor in Mexico, and I am sure that this dynamism will be boosted by this new agreement,” she states.
Question. Can you give us more details about the plan that the EIB will launch in Mexico?
Answer. Last week we had a very successful summit where the modernization of the trade agreement between the European Union and Mexico was signed, an agreement that is an example from the perspective of a strategic relationship, and the European Investment Bank is the financial arm of the European Union. So I come, four days later, to start implementing the investments and projects that have been agreed upon at the political level.
Q. The European Union announced that 5 billion euros will be invested in Mexico in strategic projects…
A. The European Investment Bank is one of the largest development banks in the world, probably the largest in the world. It is the bank of the 27 member states of the European Union, so we provide the money and also the technical support where the political priorities are, and we currently have a portfolio of projects in Mexico that we are analyzing which could amount to about 3 billion euros of investment, so yes, we expect the European Investment Bank to mobilize the majority of the investment that was agreed upon last week.
Q. Would this EIB disbursement have been possible without the modernization of the agreement between the EU and Mexico?
A. It is not a legal issue, really I am here to relaunch the activities of the European Investment Bank in Mexico. For years we have had no activity here and thanks to this strengthening of the strategic alliance between the European Union and Mexico, the European Investment Bank is relaunching its activity and financing. Mexico is a strategic priority for the European Union and what we want is for the European Investment Bank to also be a priority and strategic partner for the Mexican economy.
Q. What kind of characteristics will this financing have compared to the credit provided by other multilaterals?
A. The main characteristic of the European Investment Bank is that we mobilize a large volume of private investment. We have a triple A [the highest credit rating], we are a very solid financial entity that provides long-term financing, with good financial conditions, and we serve as an anchor investor, that is, we mobilize private investors, because we not only provide financing, we also give a quality seal. The standards of the European Investment Bank are very high, so when the EIB decides to invest in a project, many investors decide to join that project.
Q. Will this be the spearhead to make a similar type of financing in Latin America?
A. The agreement and the strengthening of activity in Mexico are part of the strengthening of our strategic activity throughout Latin America. Last year at the European Union and CELAC [Community of Latin American and Caribbean States] summit, we already agreed on significant investments in Latin America and the Caribbean. It is clear that the current geopolitical context makes the strategic alliance across the Atlantic more important than ever. I believe that the relations between the European Union and Latin America and the relations between the European Union and Mexico are better than ever.
Q. To what extent have Trump’s protectionist policies changed the EIB’s roadmap?
A. Fortunately, we have as shareholders the 27 member states and they are united, unanimous in supporting the strategic roadmap of the European Investment Bank. For example, we have consolidated ourselves in recent years as the climate bank and that is unanimously supported by the 27 member states. That the EIB is a major investor in the field of energy transition, a topic, by the way, that is a priority here in Mexico and is at the heart of the Government’s Mexico Plan and that we will decisively support.
Q. In this vein, will you sign a Memorandum of Understanding with Mexico’s Ministry of Energy…
A. Four days after the political summit, we are already taking the first steps to boost investment in Mexico with this agreement with the Ministry of Energy to jointly identify where the priorities aligned with the Mexico Plan and the energy transition are, in the field of large electric transmission networks, distribution, deployment of renewables, etc. In parallel, we will sign a loan to Bancomext, the Mexican development bank, of 150 million euros to provide financing to small and medium-sized enterprises in the areas of energy efficiency, decarbonization, and also gender equality.
Q. In the area of infrastructure, what kind of projects are you interested in supporting in the country?
A. We are looking, but well, there are areas where it is clear that the EIB is very well positioned, for example, in energy, transport, water; in the digital field these are also areas where we have a very strong position at the European and global level. But I want, above all, to listen to the Government [Mexican], to the companies, to know where our clients’ priorities are, because we provide financing on demand from the client.
Q. In this project evaluation, will the country’s insecurity be a factor you consider?
A. What I see is that European companies are very interested in investing in Mexico. Europe is the second-largest investor in Mexico and I see a very strong message of confidence from European institutions and European companies. At this moment, Mexico is on a very positive path and, from the EIB, we want to be a partner that supports that shared prosperity.
Q. How much has global geopolitical uncertainty influenced the European Union to seek to build new bridges across the Atlantic?
A. It is clear that in the current geopolitical context it is very important that all of us who share the same values and have the same vision of the world unite, that we defend a multilateral framework, a world order based on mutual respect, on cooperation. These are European values and they are also the values of Mexico and the countries of Latin America, so it is logical that in this context of conflict and volatility we all unite who have the same vision to try to promote a better future.
Q. In recent months there has been a rapprochement not only between the European Union and Mexico, but also relations between Mexico and Spain have been smoothed…
A. I will answer this question as president of the European Investment Bank, but also as a Spaniard, and it is evident that Mexico is a brotherly country, we share values, we share a way of seeing life, we share a common history, we have very strong economic and financial ties and, therefore, I am very happy that relations between the European Union and Mexico are probably at their best moment and that relations between Spain and Mexico are also excellent.
Q. With so many affinities, why has this strategic alliance between the EIB and Mexico only now been realized?
A. In the case of Mexico, fortunately, we have strengthened an alliance that already existed and it is not only political reasons, there are also economic reasons. In Mexico, perhaps there has been a very clear decision not to access financing like that provided by the European Investment Bank until now, that is, it also has to do with the decisions taken by the Mexican Government itself and Mexican companies. But now a new stage opens in the relations and we, from the European Investment Bank, will provide financing and technical support to strengthen the alliance.
Q. And overall, do you foresee an even closer relationship between the European Union and Latin America?
A. What we are doing from the European Union in this international context is weaving strategic alliances with those countries that have the same vision. We are talking about Latin America, but the same happens with Canada, Australia, South Africa, and India.
It is clear that the European Union is a peace project, it is a commercial superpower and it is a project based on multilateral cooperation and at this moment of so much international turbulence, I believe Europe is an anchor and a beacon of human rights, security, mutual respect and that explains why many countries want to strengthen their relations with the European Union and, at this moment, that is what we have to do, build. Where some build walls, close markets, we are building bridges and opening doors to all those who share our values.
Q. Two years after your arrival at the presidency of the EIB, what has been your greatest challenge and satisfaction at the helm of this institution?
A. For me it is a great satisfaction that the European Investment Bank continues to be the climate bank, but is also strengthening its financing in two areas that are strategic and priority for Europe, in technological leadership, everything that is digital, artificial intelligence, new technologies, and in security and defense. So, maintaining the essence and that priority, we have managed to significantly strengthen our financing in two areas that are key for Europe at this moment and for the future.
