The move helps ease concerns about the independence of the Bank of Italy, which holds the world's third-largest gold reserve.
Italy's Finance Ministry said Rome had reached a consensus with the European Central Bank (ECB) after a controversy over a draft budget clause. The clause, sponsored by lawmakers on the right wing of Prime Minister Giorgia Meloni, states that the amount of gold held by the Bank of Italy belongs to the people of Italy.
This expression has prompted the ECB to express concern, saying it could undermine the independence of the Bank of Italy - a core principle within the institutional framework of the European Union (EU). The ECB stressed that national central banks are not subject to direction or intervention from member governments.
According to sources, Italian Economy Minister Giancarlo Giorgetti and ECB President Christine Lagarde directly discussed and resolved the issue on the sidelines of a meeting of eurozone finance ministers in Brussels. After this meeting, the two sides agreed on a new approach to address ECB concerns.
The Bank of Italy is a public institution but operates independently of the government. The bank currently holds the world's third largest gold reserves, behind only the US and Germany. In total, Italy owns about 2,452 tons of gold. With the current world gold price of about 4,300 USD/ounce, the estimated value of Italy's gold reserves is over 300 billion USD, equivalent to nearly 13% of the total national economic output.
In response to ECB concerns, Minister Giorgetti reassured that Italy has no plans to move this amount of gold out of the Bank of Italy's accounting balance sheet. This commitment means that Rome will not seek to circumvent the regulation prohibiting central banks from directly funding the public sector - one of the "red lines" of EU monetary policy.
Senator Lucio Malan - one of the sponsors of the controversial provision - said that the government has worked to adjust the draft wording, ensuring it is consistent with the concerns raised by the ECB.
In a letter to ECB President Christine Lagarde before the meeting in Brussels, Minister Giorgetti clearly stated the content of the new amendment. He affirmed that this clause has been reconstructed with the consent of the Bank of Italy.
Accordingly, the goal is not to change ownership or control gold reserves, but only to clarify in national law that the holding and management of gold reserves by the "Italyans" is the responsibility of the Bank of Italy, in accordance with EU treaties.
According to EU and ECB rules, national central banks and their decision-making bodies are not allowed to seek or receive instructions from member state governments. Italy's quick adjustment of the proposal is seen as a signal that Rome wants to avoid an unnecessary confrontation with the ECB, especially in the context of the eurozone's economy and finance still facing many potential risks.
