In September 2023, India, Saudi Arabia, the European Union, the United arabian Emirates and the United States signed a Memorandum of knowing with France, Italy and Germany to establish "India-Near East-Europe economical Corridor" (IMEC) and building an economical strategy linking the Indian Ocean to Europe.
IMEC is to connect the arabian Sea with Jordan and Israel through a railway line moving through the Arabian Peninsula. After completion, this corridor will likely include 3 major Mediterranean ports: Haifa in Israel, Pireus in Greece and Trieste in Italy. If the IMEC task is successful, it can shift Europe's economical strength from the northwest to the southeast, changing the economical balance in the EU.
IMEC represents the revival of the dominant Euro-Asian trade route, which flourished from ancient times to the 16th century. papers written in Greek in the first century C.E. attest to maritime trade between India and the Greek-Roman world. This sea and land connection functioned as part of the Silk Road until Vasco da Gama was the first to sail from Europe straight to India, circling the African Cape of Good Hope.
Italy and Greece gaining importance
Under Government Prime Minister Georgia Meloni Italy is trying to separate itself as a leader of change in the EU. Although growth rates are low, in terms of expansion, Italy has overdone France and Germany in fresh years.
The IMEC Corridor occupies an crucial place in Rome's economical policy. Italy has late established a peculiar an envoy to oversee the country's integration into IMEC, while stressing the function of the corridor in the plans to increase exports by EUR 700 billion (about PLN 2.9 trillion) in the close future. At the end of last year, Prime Minister Meloni announced that Rome's nonsubjective was to incorporate Trieste into the IMEC port system, stressing the importance of the Italian maritime manufacture for the country's economical future.
Italy besides supported its interest in IMEC strengthened diplomatic ties with India and the arabian Gulf States. The United arabian Emirates has late agreed to invest EUR 40 billion in Italy (about PLN 170 billion). Despite the force from France to make Marseille the western IMEC terminal station, Italian infrastructure and a tiny distance from the mediate East and India seem more favourable in this respect.
Greece, although not among the first signatories, tries to engage in IMEC due to the fact that This country is listed as the "gate of India to Europe". In February, Greek abroad Minister George Gerapetritis met with Indian abroad Minister S. Jaishankar to discuss bilateral investments. The importance of Greece in shipping and its expanding presence in the energy sector in the east Mediterranean make Athens a link between Italy and the mediate East and so benefit IMEC.
Chaos in the mediate East did not harm IMEC
Since the corridor was announced, Greece has diplomatically recalled the function of IMEC in its relations with both India and Israel. This country is crucial for the corridor due to the fact that almost all Indian shipments to Europe pass through Haifa. Trade between Israel and Greece increased by 41.3 percent between 2023 and 2024and this trend is to continue.
To date, external geopolitical factors specified as the Israel-Hamas war in the Gaza Strip, Huti attacks on maritime transport in the Red Sea, unrest in Syria and tensions in Iran and Turkey, did not halt advancement in IMEC development. Trade between India and the UAE has increased by 93 percent since 2022, while the UAE has allocated 2.3 billion dollars (about PLN 8.7 billion) to the construction of the railway line connecting them to Jordan. Saudi Arabia besides exceeded $4 billion (about PLN 15 billion) in investments for IMEC railway projects under the "Saudi imagination 2030".
IMEC was announced during Biden's administration in the US, but with Israel and the Gulf countries in the lead role, remains the central point of American diplomacy during president Donald Trump's second administration and is based on the abraham agreements that were concluded during his first word of office.
The ties between Italy, the United States and India flourished due to the fact that These 3 countries have late changed interior policy to more conservativewhich besides translates into diplomatic relations. Italy's commitment to IMEC coincided with the withdrawal of Rome from the Chinese Belt and way Initiative (BRI) in December 2023, 2 months after the IMEC announcement.
Of course, in order for IMEC to full mature, the policy of the arabian Sea will gotta work unchangeable adequate to offer Greece, Italy and another European countries the benefits of the trade link with India by this region. Although the war in the Gaza Strip worsened Israel's diplomatic relations, the abraham agreements signed in 2020 proved to be permanent. Trump Administration wants Saudi Arabia joined the agreements, and the inclusion of Riyadh is simply a central point in the diplomatic efforts of administrations, even though specified an agreement remains in the sphere of distant plans for the time being.
The Key function of India
In the east, India's economical growth gives additional importance to the endurance of the IMEC plan. New Delhi has an interest in not being surrounded by the Chinese Belt and Road Initiative. Abraham and IMEC agreements offer Indiam to complement the Four-sided safety dialog (known as Quad), i.e. partnerships with the US, Japan and Australia.
As countries worldwide retreat from China, India's possible as a production base focused on exports and the consumer marketplace is growing. Antonio Tajani, Italian abroad Minister, was in April in fresh Delhi to strengthen trade ties and advance IMEC. Since trade with the US is presently subject to duties, the EU and India are seeking to conclude a free trade agreement this year, following the fresh conclusion of an agreement with a group of countries in South America Mercosur.
European economies of the western Mediterranean may lose any impact on IMEC's maturation. The French authorities with president Emmanuel Macron at the head have made Paris' commitment to IMEC the nonsubjective of its abroad policy, working to safe France as the western end of the fresh economical trade system.
However, Greece and Italy strive to be leaders due to geographical proximity and appropriate multilateral links in the east Mediterranean. Today's EU policy shows different dynamics than in the 2008 financial crisis, erstwhile Italy and Greece were among the weakest economies in Europe and ridiculed by advanced levels of debt and fiscal imbalances.
How Greece and Italy can strengthen themselves at the expense of France and Germany
Greece and Italy have a better position to benefit from the IMEC than France and Germany due to their geographical location and core supply chain assets. Greece and Cyprus can usage their proximity to the Suez Canal and the port of Haifa, 2 main points connecting South East Europe to India. Furthermore, if Gaza rebuilds after the current war with Israel under fresh leadership, Europe will benefit from the addition of a 3rd port connecting the Mediterranean Sea with the inland rails to the Gulf.
Western European ports now dominate European trade, nevertheless Italy and Greece have a full of 4 ports with large capacity for expansion. Pireus, Genoa, Naples and Trieste are closer not only to emerging energy sources in the south-eastern Mediterranean but besides to developing economies in the east of the EU, specified as Poland.
Germany traditionally focused on trade with the North Atlantic, but is now looking at another markets. This gives Italy and Greece a fresh leverage in European policy, which is boosted by South-East European Gulf investments and trade with India. Rail infrastructure provides Germany with an contribution to IMEC development, but due to geographical location, infrastructure and supply chains, the impact of South-East Europe is likely to increase.
There is simply a historical precedent for this. As part of German abroad policy from 1903 to planet War I, Berlin sought to establish an crucial rail connection to the Persian Gulf via the Berlin-Bagdad railway to gain access to energy and limit British and Russian interests in Eurasia. Ironically, IMEC points to the anticipation of a revival of this plan, but with Germany as the northwestern end of specified a project, alternatively than its sole beneficiary.
However, it is worth remembering that Germany and France inactive have a number of factors in their favour. This can let them to stay at the heart of European politics and power, even if IMEC is full implemented. Both countries hold considerable organization power over decisions taken in the European Commission and the European Parliament.
In economical terms, France and Germany are integrated into the improvement of IMEC, both as a origin of possible investments and lucrative consumer markets for Indian products and services. Niemice's position towards Chinese BRI is more ambiguous than Italy, which withdrew from it and after IMEC. Bilateral investments between China and Germany fell in 2023, with the importance of China in the production of electrical vehicles and Beijing's alliance with Russia put Berlin in an awkward geoeconomic situation towards Beijing, which can strengthen the German IMEC interest.
In turn Athens faces obstacles due to the fact that The Chinese company Cosco is simply a majority shareholder in port operations in Piraeus. Athens insists that the Chinese invest in port to let it to become an IMEC terminal. India besides hopes that Greece's relations with China will not impede the improvement of the corridor.
