Germany and Italy are under increased pressure to bring back roughly $245 billion worth of gold kept in the Federal Reserve’s vaults in New York, as reported this week.
Concerns among European politicians and taxpayer advocacy groups have risen, particularly following verbal attacks on the Federal Reserve by U.S. President Donald Trump. They highlight that holding gold reserves overseas can jeopardize European financial sovereignty.
Germany and Italy possess the second and third largest gold reserves globally, with 3,352 tons and 2,452 tons, respectively, while the U.S. holds the largest share at 8,133 tons.
Fabio de Masi, a former European Parliament member aligned with Germany’s new leftist BSW party, is advocating for the repatriation of German gold. He mentioned to that there is a “strong debate” about bringing more of Germany’s bullion back home.
Historically, Germany began storing most of its gold in the U.S. during the post-World War II economic boom, with about a third of its total still held at the New York Federal Reserve.
Earlier this year, German media reported that senior members of the center-right Christian Democratic Union (CDU) have discussed the idea of relocating gold reserves out of the United States given the current political climate.
Concerns Over Fed Independence
The European Association of Taxpayers (TAE) echoed these worries, with President Michael Jager advocating for both German and Italian financial authorities to lessen their reliance on the Federal Reserve. “Trump wants to control the Fed,” he emphasized during a recent interview. “It’s our money; we should take it home.”
Meanwhile, Italian economic commentators have voiced similar sentiments. Enrico Grasini warned in Il Fatto Quotidiano that keeping 43% of Italy’s gold reserves in the U.S. under an unpredictable Trump administration poses a significant risk to national interests.
Since returning to office, Trump has made strong and at times offensive critiques of Federal Reserve Chairman Jerome Powell, which poses risks to the independence of the U.S. Central Bank and could negatively impact the gold situation in Europe, according to TAE.
