Since the 1980s, we have witnessed an intense globalization process that has generated significant challenges but has also fostered economic and financial integration.
While the elimination of barriers to global trade marked the beginning of globalization, the liberalization of capital movements has been a determining factor in driving growth and also contributing to reducing disparities among countries.
Greater financial openness favors lower financing costs, stimulates productive and innovative investment, and strengthens the discipline of authorities in the design and implementation of economic policies.
To understand this, there are three types of capital flows: direct investment, which seeks control of a company; portfolio investment, involving the purchase of fixed-income securities or shares; and loans. All are relevant, although the first is associated with greater confidence and a long-term perspective.
The eurozone is a net exporter of capital abroad. In 2023, it exported more than €283 billion. Why not invest these savings in internal competitiveness? This would involve promoting and encouraging innovative and sustainable projects for the future. International investment in the area could also be facilitated, which would likewise be supported by decisive progress in the integration of the European capital market, to provide it with greater appeal and depth.
It is true that uncertainty regarding global trade behavior is a factor that weighs on short-term economic forecasts. However, investment flows are truly decisive when we speak of the long term. And it is on these that we must focus our attention.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
