China has picked off Italy and nobody noticed. In what could be considered an appalling move the Italian Prime Minister signed a historic memorandum of understanding with Chinese President Xi Jinping Saturday morning in Rome. The agreement made Italy the first founding EU member, and the first G-7 nation, to officially sign on to Beijing's "One Belt, One Road" (OBOR) economic development initiative.

For Italy, this appears an "any port in a storm" situation. Italy struggling with a high level of debt and a stagnate economy has found the EU less than supportive and lacking answers as to how they might kick-start growth

The ramifications flowing from Italy's deal with China may, in the end, prove to be a deal with the devil that opens the floodgates that washes away much of the EU and breaks the euro. The article below delves into the current deal.

Comments (9)
No. 1-2
Latkes
Latkes

I don't see how this is a bad deal for Italy. EU certainly isn't treating them any better.

William Janes
William Janes

Or possibly, one of the final nails in China's debt coffin. The whole "Belt Them Throttle & Them" Project is nothing more than more "make work" projects for Chinese construction industries. No more airport or transportation projects left in China. Bribe local politicians in these countries to sign on to Chinese Debt Program and pay later for useful/useless infrastructure. Probability high that infrastructure won't pay for itself and these countries will default on the debt. Chinese then attempt to have World Bank or IMF rescue these countries so they can pay Chinese debt.