ECB President Christine Lagarde has cautioned Italy against a plan to proclaim the nation’s gold to be the people’s property. The action is in response to a proposed budget amendment by the ruling Brothers of Italy party that aims to alter reserve management.
Lagarde highlighted that, in accordance with European legislation, the national central bank of each member state is solely responsible for the keeping and administration of reserves in response to a question from Italian MEP Pasquale Tridico of the Five Star Movement.
According to Lagarde, “the Bank of Italy is no different from any other national central bank.” “Italy is the third-largest central bank in terms of gold holdings, so this is not a trivial issue. Statements about the ownership of gold reserves touch on the core ideas guiding central bank independence in the eurozone, making them more than just regulatory adjustments.
In a legal opinion released on Tuesday, the European Central Bank stated that “the Italian authorities are able to attend reconsider the draft provision, also with regard to preserving the independent fulfilment of the basic ESCB-related tasks of the Banca d’Italia under the Treaty.”
Reserves are held and managed by national central banks in accordance with European conventions. Formal ownership is not mentioned, but it is pretty evident who is responsible for accounting and operations.
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