Italy's Gold Reserves: Sovereignty or Sale?

Italian lawmakers are revisiting the ownership debate over the central bank's $300 billion gold reserves, proposing they belong to the state. Stored primarily in Italy and partly abroad, these reserves are central to financial stability. Critics argue this move could hinder the central bank's independence.

In a renewed push to assert state ownership, Italian lawmakers have proposed that the central bank's substantial $300 billion gold reserves officially belong to the state. The motion, supported by five senators from Prime Minister Giorgia Meloni's party, was introduced as an amendment to next year's budget.

The Bank of Italy ranks third globally in national gold stockpiles, following the U.S. and Germany. With 2,452 metric tons of gold, Italy's reserves represent about 13% of its national output. Despite financial crises, Italy has refrained from selling its gold, contrasting with other countries like Britain and Spain.

Stored mainly at Palazzo Koch in Rome, with portions in the U.S., Britain, and Switzerland, the ownership and potential sale of the reserves have been contentious topics aimed at reducing Italy's public debt. Critics argue such moves challenge the central bank's autonomy mandated by EU treaties. Meanwhile, proposed amendments aim to utilize unrecorded gold holdings to boost state revenue.

(With inputs from agencies.)