FT: Germany And Italy Urged To Return $245 Billion Worth Of Gold Stored In The US
- 23.06.2025, 18:17
The EU Taxpayers Association is calling for it to be withdrawn due to Trump's unpredictable policies.
Germany and Italy are being urged to withdraw U.S.-stored gold reserves totaling $245 billion to Europe amid "geopolitical instability" and President Donald Trump's criticism of Federal Reserve Chairman Jerome Powell, reports Financial Times.
The World Gold Council estimates that Germany and Italy have the world's second and third largest gold reserves (after the US), at 3,352 tons and 2,452 tons respectively. More than a third of the bullion is held in the United States, with both countries relying heavily on the Fed. This is largely due to historical reasons and the status of New York as one of the world's most important centers of gold trade along with London, writes FT.
In connection with the unpredictable policy of Trump in Europe increased calls for the export of gold. In particular, the Association of European Taxpayers insists on this, which appealed to the ministries of Finance and central banks of Germany and Italy. "We are very concerned that Trump is encroaching on the independence of the Fed," said the association's president Michael Jaeger. He emphasized that control over gold should belong to European regulators.
"We need to decide whether storing gold abroad has become safer and more stable over the last decade or not," said former Christian Social Union (CSU) deputy chairman Peter Gauweiler. According to him, "the answer to this question is obvious" because of geopolitical risks. A similar view is held by Fabio de Masi, a former Left Party Bundestag deputy and former German MEP.
The Italian newspaper Il Fatto Quotidiano published an article ahead of Prime Minister Giorgi Meloni's April trip to Washington to meet with Trump, saying that keeping 43% of Italy's gold reserves in America under the current US administration is "risky for national interests." In 2019, Meloni's right-wing Brothers of Italy party, while in opposition, favored repatriating the gold, the FT recalls. The politician herself promised to "bring Italian gold home" if she came to power, but has not revisited the issue since taking office as prime minister at the end of 2022. She wants to maintain good relations with Trump and prevent an escalation of the trade war, the newspaper said.
The German Federal Bank told the FT that it "regularly assesses the locations of gold reserves" and considers the Fed a reliable and trustworthy partner. The Bank of Italy did not respond to the publication's request.
According to a June report by the European Central Bank, gold has overtaken the euro to become the second most popular asset in the international reserves of the world's central banks. It accounted for 20% of reserves in 2024, the euro - 16% and dollars - 46%.