Investor confidence in the Philippine economy is receiving a significant boost from ongoing government initiatives to combat corruption and enhance governance, according to a top foreign diplomat. European Union Ambassador to the Philippines Massimo Santoro made these remarks during a key business event in Makati City on Thursday, January 22, 2026.
Reforms Fueling Economic Optimism
Ambassador Santoro emphasized that policy reforms, including liberalization measures, are playing a crucial role in assuring businesses that the country's investment environment remains robust and attractive. He stated that efforts in good governance and accountability are precisely what draw and retain investors in the Philippines.
Launch of Business Guide Highlights Progress
The comments were delivered at the launch of the Doing Business in the Philippines 2026 report, where Santoro expressed optimism that the current momentum could lead to increased investment flows in the coming year. He noted that such investments are vital for job creation, technology transfer, and the development of sustainable, high-value industries beyond mere trade and investment.
Free Trade Agreement Talks to Resume
In a significant development, Ambassador Santoro announced that negotiations for the Philippines–European Union free trade agreement are expected to restart by March 2026. These talks will be accompanied by smaller dialogues between the two parties, focusing on creating a stable and predictable framework for economic relations.
Comprehensive Negotiation Agenda
The discussions will cover a wide range of areas, including trade in services, investment, intellectual property, digital trade, and sustainability. Santoro described these elements as crucial for modern and high-quality economic partnerships, highlighting the FTA's potential to foster shared growth and bring both sides closer to a prosperous and sustainable future.
He added that the agreement could also generate substantial job opportunities within the Philippines, further underscoring its importance for the domestic economy. The resumption of FTA talks signals a renewed commitment to strengthening bilateral ties and enhancing economic cooperation between the Philippines and the European Union.
