Germany and Italy to join China-backed bank

Berlin - Germany and Italy have agreed to follow Britain's lead and join a China-led international development bank, dealing another blow to US efforts to keep Western nations out of the new institution, the Financial Times said on Tuesday.

The newspaper, quoting European officials, said the decision by the four countries to become members of the Asian Infrastructure Investment Bank (AIIB) was a major setback for Washington, which has questioned if the new bank will have high standards of governance and environmental and social safeguards.

The AIIB was launched in Beijing last year to spur investment in Asia in transportation, energy, telecommunications and other infrastructure. It was seen as a rival to the Western-dominated World Bank and the Asian Development Bank.