Italy Declares Gold Reserves 'People's Treasure'

Italy's parliament committee approves an amendment declaring the central bank's gold reserves as public property. This has drawn criticism from the ECB, which fears it could affect the central bank's independence. The amendment is seen as a political statement rather than a policy change.

An Italian parliamentary committee has approved an amendment to next year's budget stating that the gold reserves held by the country's central bank belong to "the people," lawmakers said, ignoring criticism from the European Central Bank.

The ECB had twice intervened, warning against potential threats to the Bank of Italy's independence since the Brothers of Italy party proposed the amendment. "Gold reserves managed and held by the Bank of Italy, as recorded on its balance sheet, belong to the Italian people," read the approved text.

Economy Minister Giancarlo Giorgetti claims the issue is resolved following discussions with ECB chief Christine Lagarde. The amendment is described as a political principle, clarifying foreign entities' lack of claims on Italy's gold stockpile, said to be the world's third-largest.

(With inputs from agencies.)