European nations apply to help found a new Chinese development bank
The Asian Infrastructure Investment Bank, a China-led alternative to conventional international development banks, will add six developed economies to its 27 strong roster of existing founders. Britain, France, Germany, Italy, Luxembourg and Switzerland have all been accepted and China, already a contributor to the Japanese-led Asia Development Bank and the World Bank, will use the funds to finance construction projects in the ASEAN region.
Finance Minister Lou Jiwei told the China Daily newspaper he was "not surprised" by the decision of the European countries to join the new bank, which is scheduled to become offically incorporated by the end of 2015. When announced last year, the bank had just 21 founders, but has since become extremely popular with foreign investor nations.
Australia is reportedly considering a $2.3bn pledge to the bank, although it will be one of the last major developed countries to do so. Britain was the first Western nation to apply for founding member status and was shortly followed by France and Germany.