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Italian government split over ‘Silk Road’ accord with China

Italian officials have confirmed they'll sign the New Silk Road 'memorandum' with China later this month, dividing opinion within the country's coalition government and prompting warnings from the US.

Italian government split over 'Silk Road' accord with China
Italian Interior Minister and League leader Matteo Salvini. Photo: Tiziana Fabi/AFP

The “memorandum of understanding” with China, officially supporting Beijing's massive Belt and Road Initiative (BRI), will be signed during the visit of Chinese President Xi Jinping to Rome on March 20, the Italian Undersecretary of Foreign Affairs said on Monday.

The signing will make Italy the first G7 nation to join the so-called “New Silk Road” project, Manlio Di Stefano told La Stampa.

But Italy's coalition government faces another split over the issue, with League leader and Interior Minister Matteo Salvini, telling reporters in Milan on Monday that the deal could mean foreign companies “colonising Italy.”

“It it's a matter of helping Italian companies to invest abroad we are willing to talk to anyone,” Salvini said.

“If it's a question of colonising Italy and its firms by foreign powers, no,” he said, adding that this was “the position of the whole League”.

However, his government coalition partners in the populist Five Star Movement (M5S), who are supporting the accord, said Industry Undersecretary Michele Geraci, also of the League, “strongly supports the agreement” and told news agency Ansa there was an internal split in the League, rather than a split between the two parties.

READ ALSO: Venice-themed ship cruises to burgeoning China market

Salvini's words echoed concerns voiced by the United States and other Western countries that the ambitious infrastructure project could be a Trojan horse for Chinese expansion.

Di Stefano pointed out that the memorandum is “not binding” and “does not have the status of an international agreement.”

Neither, he said, does it concern the telecoms sector, access to which critics fear could allow China to create “backdoors” allowing Beijing to spy on Western countries.

Tha US had already spoken to Rome about security fears around Chinese technology company Huawei.

The Chinese BRI plan is often called the “New Silk Road” as it aims to revive and extend the ancient trade routes.

A map shows how the former Silk Road routes could be extended today. Image:Belt and Road Portal, China’s National Development and Reform Commission

READ ALSO: Prada looks to China for growth after rough year for sales

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POLITICS

Italian minister indicted for Covid-era fraud

Prosecutors on Friday charged Italy's tourism minister with fraud relating to government redundancy funds claimed by her publishing companies during the coronavirus pandemic.

Italian minister indicted for Covid-era fraud

Opposition lawmakers immediately requested the resignation of Daniela Santanche, a leading member of Prime Minister Giorgia Meloni’s far-right Brothers of Italy party.

Santanche, 63, has strongly rejected the allegations, including in a defiant appearance in parliament last year.

“The Milan prosecutor’s office today requested the indictment of the Minister Santanche and other persons as well as the companies Visibilia Editore and Visibilia Concessionaria,” the office said in a brief statement.

They were indicted “for alleged fraud of the INPS (National Institute for Social Security) in relation to alleged irregularities in the use of the Covid 19 redundancy fund, for a total of 13 employees”.

According to media reports, Visibilia is accused of obtaining state funds intended to help companies struggling with the pandemic to temporarily lay off staff — when in fact the 13 employees continued to work.

Santanche sold her stake in Visibilia when she joined the government of Meloni, who took office in October 2022.

The investigation has been going on for months, but with the decision by prosecutors to indict, opposition parties said Santanche should resign.

“We expect the prime minister to have a minimum of respect for the institutions and ask for Daniela Santanche’s resignation,” said Elly Schlein, leader of the centre-left Democratic Party.

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