World
Italy May Withdraw From China's Belt And Road Initiative As It Commits To India-Middle East-Europe Economic Corridor
PM Modi with Italian PM Giorgia Meloni
Italian Prime Minister Giorgia Meloni has privately signalled to Chinese Premier Li Qiang that Italy intends to withdraw from China's Belt and Road Initiative (BRI).
It is worth mentioning that Italy is one of the signatory countries in the memorandum of understanding for the India-Middle East-Europe Economic Corridor (IMEC), which was signed during the first day of the G20 Summit on Saturday (9 September).
The IMEC comprises of an Eastern Corridor connecting India to the Gulf region and a Northern Corridor connecting the Gulf region to Europe.
It will include a railway and ship-rail transit network and road transport routes.
The BRI infrastructure deal, while intended to strengthen the infrastructure of middle and lower income nations, has resulted in several nations being pushed into debt trap.
Earlier this year, Bloomberg reported that Rome plans to exit the BRI, but Prime Minister Meloni faced a dilemma on how to communicate this to Beijing without risking trade retaliation from Xi Jinping.
She added that other European nations had been able to negotiate better relationships with Beijing without signing up to the initiative.
Italy finds the exit from BRI pact, which it signed in 2019, a sensitive issue sensitive due to a warning from the Chinese ambassador to the country earlier this year, who stated that there would be "negative consequences" if Italy were to withdraw from the agreement.
Prime Minister Meloni also has plans to visit China in the coming months.
Meloni has reportedly been waiting for the right moment to withdraw from the BRI deal, as current and former ministers have expressed concerns about the potential disadvantages it may bring to Italy.
Meloni has been carefully considering how to approach China and inform them of Rome's decision to withdraw from the infrastructure pact. Italy is concerned about potential trade retaliation as a result of its departure from the initiative.
