Economic integration in Euro-Mediterranean region lagging despite potential for sustainable growth and development, UfM report finds

September 15, 2025
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12 September 2025, Barcelona. The 2nd UfM report on the state of economic integration in the Euro-Mediterranean region, developed in partnership with the OECD with the support of the German Development Cooperation (GIZ), was presented today at Barcelona’s Palau Reial palace. Coinciding with the 30th anniversary of the Barcelona Process, it builds on the previous edition and provides key findings and policy recommendations in five domains: trade, finance, infrastructure, movement of people, and higher education and research. The launching ceremony of the report also brought together representatives of different regional integration processes and stakeholders to showcase best practices that can be adapted and replicated in the Euro-Mediterranean region.

 

The report highlights the complex geopolitical context in which Euro-Mediterranean economic integration processes occur, pointing to the severe repercussions caused by the ongoing conflicts in Ukraine and the Middle East, disrupting supply chains, energy security and prices as well as efforts to foster investment attractiveness and socioeconomic growth and resilience. At the same time, it takes stock of the positive trend of increasing ties between UfM Member States and the Gulf region, now an important source of foreign direct investment especially in MENA countries, as well as Pan-African initiatives.

 

Infrastructure connectivity is described as central to boosting not only regional trade and investment, but also R&I collaboration and economic diversification in countries that need it the most. Strengthening transport networks by integrating road, rail and maritime links can optimise routes and promote sustainability in a region responsible for 13.4% of global transport emissions, a 40% increase since 1990. Likewise, cross-Mediterranean renewable energy exchanges, which offer significant potential given the MENA region’s capacity to support the EU’s ambitious climate goals, will depend on expanding infrastructure and its integration into local and regional energy grids.

Countries covered:

  • Algeria
  • Egypt
  • Israel
  • Jordan
  • Lebanon
  • Libya
  • Morocco
  • Palestine *
  • Syria
  • Tunisia