Opinion: How strengthening an EU-Latin America partnership is a win-win

The recent freeze of U.S. foreign aid under U.S. President Donald Trump, including cuts to programs funded by the U.S. Agency for International Development and the U.S. Department of State, marks a critical turning point for Latin America and the Caribbean, given the region's ongoing socioeconomic challenges. As the U.S. reduces its contributions, the European Union faces an unprecedented opportunity to step up as a key global player in Latin America and the Caribbean and deepen its engagement in the region. The region grapples with significant structural challenges. Limited access to affordable financing, high inequality, slow economic growth, and widespread violence shape the region’s complex socioeconomic landscape. These difficulties are especially pronounced for young people, who face increasing job market insecurity. Recent research by the Economic Commission for Latin America and the Caribbean and Ayuda en Acción estimates that more than 1.8 million young people will transition into the service sector in the coming years — posing evident challenges for education and social welfare systems. Traditionally, Latin America and the Caribbean has not been a top priority for EU development cooperation. However, the geopolitical landscape is shifting. The EU’s growing emphasis on promoting a rules-based multilateral system and defending democratic values provides a strong foundation for enhancing ties with the region. The 2023 EU-LAC Summit, held in Brussels after a seven-year hiatus, underscored the shared commitment to democracy, human rights, and collaboration on pressing issues such as climate change and trade. Notably, the EU’s “Global Gateway” strategy — which aims to mobilize up to €45 billion by 2027 to support sustainable development in Latin America — represents a pivotal initiative to address these challenges. Now more than ever, the EU must seize the opportunity to strengthen its partnership with Latin America, ensuring it is both resilient and sustainable. This will require a reassessment and reinforcement of its development strategies, prioritizing poverty reduction, human rights, and climate justice while pursuing long-term, mutually beneficial objectives. A fundamental aspect of this renewed partnership is tackling inequality and fostering social inclusion. Inequality in Latin America is systemic, undermining social cohesion and economic growth. Young people, women, and Indigenous populations are particularly vulnerable to social exclusion in education, labor markets, and political institutions. A more integrated and holistic approach — one that simultaneously addresses climate change, migration, and inequality while placing young Latin Americans at the center of shaping the region’s future — is essential for sustainable development. The EU should also focus on maximizing synergies between the public and private sectors. By linking development cooperation with market-based strategies, both regions can create a mutually beneficial dynamic that fosters economic growth while advancing the Sustainable Development Goals. This approach would help Latin America confront its key challenges and enhance social and environmental standards while offering Europe new economic opportunities in high-value sectors. For this partnership to be truly effective, civil society organizations must play a central role. A deep understanding of local priorities is essential to ensuring that development initiatives are not only well-funded but also tailored to on-the-ground realities. CSOs are crucial for identifying, designing, and implementing sustainable development projects that align private investments with the SDGs. Their long-standing relationships with local communities are instrumental in strengthening institutional and regulatory capacities in recipient countries. In conclusion, the EU should not hesitate to reinforce its ties with Latin America and emerge as a strong partner and leading force for sustainable development in the region. By prioritizing inclusive development, addressing inequality, and fostering green and digital transitions, the EU-LAC partnership can serve as a model for cooperative global governance in tackling the pressing challenges of the 21st century. Encouraging greater CSO participation will ensure stronger alignment with local needs, fostering a more inclusive and sustainable partnership for both regions.