The growing influence of BRICS+ and what it means for Europe
Thursday, 24 July 2025
The world economy is entering a new phase, one where the traditional dominance of Western powers is increasingly being challenged by a coalition of emerging economies: BRICS+. Originally formed by Brazil, Russia, India, China, and South Africa, this group has now expanded to include nations like Saudi Arabia, the United Arab Emirates, and Iran.
In our latest Future is Blue podcast episode, I sat down with Raymond Torres, Director of Funcas Europe, to explore how the rise of BRICS+ is shifting global power structures and what it all means for the European Union.
[You can access here the podcast episode.]From followers to major players
At first glance, BRICS+ is impressive for its sheer scale. The bloc now accounts for roughly 40% of global GDP in purchasing power parity terms and represents about 45% of the world’s population. But Torres warned that the real story is not just about size — it’s about leadership.
“These countries are no longer just growing fast,” Torres explained. “They are now leaders in key strategic sectors — especially technology — where they are shaping the future instead of simply following the West.”
China and India, in particular, are at the forefront of technological innovation, with notable advances in areas such as digital infrastructure, AI, and green energy solutions. This leadership represents a shift from the past, when emerging markets largely absorbed and adapted technologies developed in the West.
The geopolitics of trade and regional blocs
One of the defining features of this new global order is the move towards regional trading blocs. Torres emphasized that while the World Trade Organization used to provide a multilateral framework for global trade, the reality today is increasingly fragmented.
“We are witnessing the emergence of regional blocs, especially in Africa, Latin America, and Asia,” he noted. “BRICS+ countries are particularly keen on fostering free trade within these regions.”
The African Continental Free Trade Area, initiatives in Latin America, and new partnerships across Asia illustrate this trend. For Europe, the implications are profound. The EU must actively engage with these emerging blocs or risk being marginalized in global trade negotiations.
“It’s crucial for Europe to strike agreements with these blocs, as we’ve attempted with Mercosur,” said Torres. “But more than that, we need to rethink trade partnerships not just as a means to access raw materials, but as a way to build value chains together.”
The BRICS+ financial challenge
Beyond trade, BRICS+ countries are proposing an alternative financial architecture aimed at reducing dependency on the US dollar. While some speculate about the possibility of a new reserve currency, Torres remains cautious about such predictions.
“I don’t think replacing the dollar is realistic in the short term,” he clarified. “Creating a true reserve currency requires open capital markets, and BRICS nations still maintain significant capital controls.”
Nonetheless, diversification is underway. BRICS+ countries, many of which hold substantial external surpluses, are looking to diversify their investments away from the U.S., creating potential opportunities for Europe — if the EU plays its cards right.
“Europe could become an attractive destination for these investments,” Torres suggested. “But that will require smart policies and stronger financial governance.”
Additionally, BRICS+ nations are pushing for greater influence within multilateral institutions such as the IMF, World Bank, and regional development banks, areas where the West has traditionally held sway.
Europe’s strategic challenges
The EU is no passive observer in this shifting landscape — but it faces serious vulnerabilities, particularly in energy, critical minerals, and technology. Torres highlighted Europe’s dependency in these domains:
“We don’t have fossil energy resources, we lack critical minerals like lithium, and we’re behind in microprocessors,” he said. “These are real weaknesses that Europe must urgently address as part of its strategic autonomy agenda.”
Latin America, with its rich reserves of lithium — essential for batteries and electric vehicles — is a prime example of where Europe should rethink its approach. Instead of simply extracting resources, the EU could engage in partnerships that also foster local industrial development, such as co-producing technologies or even vehicles.
“Strategic cooperation must serve both sides,” Torres emphasized. “It’s not just about securing resources, but helping these countries move up the value chain.”
The way forward for the EU
So, how can the EU stay relevant in this multipolar world? For Torres, the answer lies in both internal integration and external engagement.
“Strengthening the EU single market is the most urgent priority,” he argued. “If Europe remains fragmented, it will lack the bargaining power to negotiate effectively with external partners.”
He also advocated for multiplying agreements with regional blocs, especially in Africa, where development cooperation could simultaneously address economic opportunities and the challenge of irregular migration.
“We need agreements that not only open markets but also align on broader goals like green technologies and climate change,” Torres said. “Asia, Latin America, and Africa all present avenues for this kind of strategic engagement.”
Implications for Europe
The BRICS+ expansion and the reordering of the global economy are not temporary shifts — they are structural. The EU can either adapt through reforms and new alliances, or risk fading in global relevance.
“This is Europe’s moment to reposition itself,” concluded Torres. “The window of opportunity is still open — but not indefinitely.”
As the global economic landscape continues to evolve, the EU faces a stark choice: to engage, adapt, and invest or to fall behind in a world where the rules of the game are being rewritten.
[You can access here the podcast episode.]Carlos Carnicero Urabayen