The Strategist

Europe approves China-led Asian investment bank

03/18/2015 - 06:25

China-led Asian investment bank has been garnering slow and steady support from western nations. Right after Britain showed support to the bank, Germany, France and Italy have also come to the front with their approval.

This combined support will be a blow to the US who is looking at any European engagement with China’s fast growing economy as a threat to the West-backed World Bank. Meanwhile, a joint statement by the foreign and finance ministers of Germany, France and Italy said they would endeavor to ensure the new institution "follows the best standards and practices in terms of governance, safeguards, debt and procurement policies".

The team also noted that further involvement by Europe in the new Asian Infrastructure Investment Bank (AIIB) is a way of tackling global investment needs and will also be an opportunity for EU companies.

European Union and Asian governments are frustrated that the US Congress has held up a reform of voting rights in the International Monetary Fund (IMF) that would give China and other emerging powers more say in global economic governance. Meanwhile, Washington has insisted that it is  not actively discouraging countries from joining the new bank, but it has questioned whether the Asian Infrastructure Investment Bank (AIIB) will have sufficient standards of governance and environmental and social safeguards.        


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