Germany and Italy are under growing pressure to repatriate a combined $245 billion worth of gold reserves currently stored in the vaults of the US Federal Reserve in New York, according to the Financial Times. The call is being driven by concerns over the political stability and independence of the US central bank, particularly in light of recent comments by former President Donald Trump.
Sovereignty and Safety at Risk
European politicians and taxpayer advocacy groups have voiced worries about the vulnerability of their gold assets stored abroad. They argue that political interference in the US Federal Reserve could pose a risk to Europe’s financial sovereignty. The push comes amid Trump’s ongoing criticism of the Fed, raising questions about its independence and reliability as a custodian of foreign gold reserves.
Germany and Italy hold the second and third-largest gold reserves in the world—3,352 tonnes and 2,452 tonnes, respectively—after the United States, which holds 8,133 tonnes.
German Lawmakers Lead the Charge
Fabio De Masi, a former member of the European Parliament and current figure in Germany’s left-wing BSW party, is leading the campaign to repatriate Germany’s gold. He told the Financial Times that “strong arguments” exist for bringing more of the country’s bullion back from the US.
Currently, around one-third of Germany’s gold—approximately 1,200 tonnes—is still stored in the Federal Reserve Bank of New York, a practice that began during the post-WWII economic rebuilding period. But in today’s political climate, even members of Germany’s conservative CDU party have reportedly floated the idea of recalling the gold.
Warnings from Taxpayer and Economic Groups
The Taxpayers Association of Europe (TAE) echoed these concerns. Its president, Michael Jäger, called on the German and Italian governments to reduce their reliance on the US for safeguarding their gold. “Trump wants to control the Fed, which would also mean controlling the German gold reserves in the US,” Jäger warned. “It’s our money. It should be brought back.”
In Italy, financial analyst Enrico Grazzini added to the debate, writing in Il Fatto Quotidiano that leaving 43% of Italy’s gold reserves in the US under the “unpredictable Trump administration” is a serious threat to national interests.
Confidence in the Fed Under Scrutiny
Since returning to the political spotlight, Trump has made repeated and sharp criticisms of Federal Reserve Chair Jerome Powell. According to the TAE and other observers, this rhetoric undermines the credibility of the Fed’s independence and increases the urgency for European nations to take control of their own gold.
As calls grow louder, Germany and Italy may be forced to reconsider long-standing arrangements with the US regarding the safekeeping of their gold reserves—decisions that could have far-reaching implications for international trust in US financial institutions.
