BRICS Summit Implications for the European Union

Last week, Russian president Vladimir Putin hosted the annual BRICS summit where the coalition sets priorities and welcomes new members. The BRICS coalition was founded in 2009 by Brazil, Russia, India, China, and South Africa; In 2023 five member states joined — Iran, Egypt, Ethiopia, Saudi Arabia and the United Arab Emirates. The group was created to challenge the monopoly the West has on economic and political power and to offer an alternative source of aid, besides the World Bank and International Monetary Fund (IMF), to emerging economies. As this coalition continues to assert its influence, the European Union (EU) must carefully evaluate the implications of its growth. The summit’s outcomes hold particular relevance for the EU, given the bloc’s strategic interests and increasing involvement in global affairs, including the ongoing conflict in Ukraine. How is BRICS going to impact the EU’s strategic interests?

The recent BRICS summit was a platform for significant discussions and decisions, particularly concerning currency dynamics. One of the summit’s main outcomes was a proposal to reduce reliance on the US dollar in international trade. This decision reflects the bloc’s ambition to create a more multipolar world order, less dominated by Western financial systems. Russia and China played pivotal roles in steering these discussions, with both nations advocating for alternative trade currencies to enhance economic sovereignty and resilience against Western sanctions. This move is a direct response to the geopolitical tensions that have arisen, including those involving Ukraine and to a lesser extent Taiwan.

For the EU, the evolving dynamics within BRICS present both challenges and opportunities. Geopolitically, the EU is keen on maintaining its influence in a world where power is increasingly distributed among multiple blocs. Economically, the EU has vested interests in stable global markets and is wary of disruptions that a shift away from the dollar could entail. The growing influence of BRICS challenges the EU’s global standing, particularly as BRICS nations seek to expand their economic networks and influence in regions traditionally aligned with the EU. As BRICS draws more and more emerging economies, the EU seems to be getting left behind. Currently, BRICS member states make up 45% of the global population and their combined economies are worth 28% of the global economy. Conversely, EU member states make up 5.6% of the global population and have an outsized share of 15.2% of the global economy.