Italy is intensifying its effort to claim state ownership of its gold reserves, provoking strong reactions from the European Central Bank (ECB), which argues that such actions undermine the independence of national central banks.
This clash reveals a deeper tension in the euro system, as control of national gold had already become more centralized years ago based on the rules and agreements of the Eurosystem, raising questions about what “autonomy” truly means today.
What the government of Italy is attempting
The government of Italy is moving forward in its attempt to officially claim state ownership of the approximately 300 billion dollars in gold held by the Bank of Italy, pursuing a political claim over the world’s third-largest national gold reserve despite warnings from the European Central Bank that such actions may violate EU protections for the independence of central banks.
Lucio Malan, head of the Brothers of Italy party and top vote-getter in the Senate, stated that the amendment aims to prevent the gold from being misused in the future.
He stressed that “not even the Bank of Italy can do whatever it wants with the gold,” presenting the proposal as a safeguard rather than an attempt to use the gold for fiscal purposes.
The amendment, submitted with the cooperation of four allies from the governing coalition, declares that the reserves “belong to the state, on behalf of the Italian people,” placing political ownership above the role of the Bank of Italy as custodian.
What gold Italy possesses
Italy holds 2,452 tons of gold, a quantity corresponding to approximately 13% of its annual economic output, placing the country behind only the United States and Germany in total gold reserves.
The proposal comes at a time when Italy is handling heavy public debt and political pressure to clarify who controls the national gold.
Over the past twenty years, politicians from various parties have questioned whether the gold could be sold to reduce debt or finance tax cuts.
A government official stated that the government will seek input from both the Bank of Italy and the ECB before moving forward with legislation, ensuring that the process remains aligned with European requirements for the independence of monetary authorities.
Reaction from the ECB
The European Central Bank had already reacted to a similar effort in 2019, warning that restrictions on the management of gold reserves would conflict with the principles governing the European System of Central Banks (ESCB).
The ESCB statute prohibits central bankers from accepting instructions from national governments or EU institutions, placing the management of gold clearly under the authority of the central bank.
Lucio Malan denied any intention to sell the metal and stated that the aim is to remove future uncertainty regarding its ownership.
The Bank of Italy has noted that gold can be used as collateral to secure liquidity or, in extreme cases, be sold to obtain euros and stabilize the currency.
This confrontation comes at a time of increasing fragmentation within the EU, with differences among European nations becoming more evident regarding the management of gold.
The issue of controlling gold reserves has now become a symbol of a deeper confrontation, as many EU member states question the centralized management of their strategic assets under the shadow of the ECB’s fiscal and monetary policies.
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