A budget dispute over Italy’s massive gold holdings ended Thursday when officials from Rome and the European Central Bank reached an understanding in Brussels, according to Italian Treasury sources.
The controversy stemmed from a Brothers of Italy proposal that would formally declare the nation’s gold reserves belong to “the Italian people.” Economy Minister Giancarlo Giorgetti settled the matter with ECB President Christine Lagarde during eurozone finance talks, though neither the ECB nor Italian officials immediately disclosed specific terms.
Brothers of Italy lawmakers, part of Prime Minister Giorgia Meloni’s coalition, initially introduced the amendment to Italy’s 2026 budget. The ECB challenged the measure twice, arguing it threatened the Bank of Italy’s institutional independence.
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Party officials defended their position through internal communications, warning that “Italy cannot run the risk of private investors claiming rights over the Italian gold reserves.” They pointed to foreign ownership stakes in the Bank of Italy held by entities such as Credit Agricole of France and Germany’s Allianz.
Italy maintains the third-largest sovereign gold position globally at 2,452 tonnes, trailing only the United States and Germany. Current market valuations place the reserves at $336 billion, equivalent to 13% of Italian economic output.
The central bank keeps three-quarters of its official reserves in gold, a significantly higher proportion than most European nations. Italy has declined opportunities to sell its holdings during past financial crises, unlike Britain and Spain.
Lagarde warned that European treaty law assigns reserve management exclusively to national central banks. Moving gold off the Bank of Italy’s balance sheet would violate prohibitions against central banks financing government operations, she noted.
The League party sparked similar tensions in 2019 when it questioned gold reserve ownership, making this the second time in six years Italian politicians have challenged the central bank’s control over the assets.
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