Imagine a country’s gold reserves, a symbol of its economic strength, suddenly becoming the center of a heated political debate. This is exactly what’s happening in Italy right now, as Giorgia Meloni’s right-wing party, Brothers of Italy, pushes to declare the nation’s gold reserves as the ‘property of the people.’ But here’s where it gets controversial: critics argue this move could be a precursor to the government selling off the gold to tackle Italy’s massive debt or fund underfunded social services. Could this be a bold step toward transparency, or a risky gamble with the country’s financial stability? Let’s dive in.
Italy boasts the world’s third-largest gold reserves, trailing only the U.S. and Germany, with approximately 2,452 tonnes of gold valued at a staggering €285 billion, according to the Bank of Italy. This gold is part of the country’s foreign exchange reserves, which the central bank claims bolster confidence in Italy’s financial system and the euro. But Brothers of Italy sees it differently. They’re advocating for a provision in the upcoming budget law that explicitly states, ‘The gold reserves managed by the Bank of Italy belong to the Italian people.’
And this is the part most people miss: Senator Lucio Malan, the party’s chief whip, emphasizes that this gold is the ‘fruit of the labor of our people,’ a principle they believe must be enshrined in law. This debate isn’t new; it’s been simmering since a decade ago when a restructuring of the Bank of Italy made financial institutions, including private lenders, nominal shareholders in the central bank. Since then, right-wing parties have repeatedly tried to clarify that the gold belongs to the state, but these efforts have always stalled.
Meloni herself, long before becoming prime minister, warned against any ‘expropriation’ of Italy’s ‘monetary sovereignty,’ insisting the gold should never be ‘touched by these new owners of our central bank.’ The issue gained traction again in 2019 when the far-right League party proposed turning the central bank into a mere custodian of the gold. The European Central Bank (ECB) swiftly warned that such a move would violate EU treaties by circumventing the prohibition of monetary financing. The proposal fizzled out after the League’s coalition government collapsed.
Now, the ECB is once again in the spotlight, stating it’s been consulted on the draft amendment and is ‘currently considering the matter.’ Economists are sounding the alarm, warning that declaring the gold as public property could make it easier for future governments to liquidate it, potentially undermining Italy’s financial credibility. ‘Selling gold to relieve public finances is like admitting we’ve run out of other options,’ economist Salvatore Rossi wrote in La Stampa last month.
Malan counters that the government has no plans to sell or relocate the gold, half of which is stored in the U.S. He argues that recognizing public ownership is a matter of principle and transparency. ‘If we record ownership for every car and boat, why not for an asset worth nearly €300 billion?’ he told the Financial Times. Senator Claudio Borghi of the League party agrees, calling the current ownership structure an ‘anomaly’ that needs correction.
But here’s the counterpoint: The opposition Democratic Party accuses Brothers of Italy of reviving this issue to distract from pressing concerns like the soaring cost of living and healthcare challenges. ‘Italians need answers on wages, businesses, and investments, not nostalgic battles,’ said Antonio Misiani, the party’s economic chief.
So, what do you think? Is this a principled stand for transparency, or a risky move that could backfire? Should Italy’s gold reserves be explicitly declared public property, or is the current arrangement sufficient? Let us know in the comments—this debate is far from over.
