Bloomberg News

Germany Says Gold Reserves Are Off Limits for Euro Rescue Plans

November 07, 2011

Nov. 7 (Bloomberg) -- The German government said its gold reserves are off limits for any euro-area rescue measures and will remain under the independent oversight of the Bundesbank, rejecting reports that such a plan is being considered.

“There is no reason to start speculating about Germany’s gold reserves,” government spokesman Steffen Seibert told reporters today in Berlin. Economy Minister Philipp Roesler told ARD television earlier that the reserves must be “untouchable.”

Seibert denied a Frankfurter Allgemeine Sonntagszeitung newspaper report yesterday that using the Bundesbank’s gold and currency reserves was mooted as part of a debate on boosting the rescue fund, the European Financial Stability Facility, at the Group of 20 summit in Cannes, France.

Chancellor Angela Merkel rejected a proposal by some participants in the Nov. 3-4 summit to use the International Monetary Fund’s special drawing rights to bolster the EFSF, Seibert said. The German leader pointed out that the German reserves are under the Bundesbank’s administration.

“She made it clear that she could not support such a proposal,” the spokesman said.

“We are familiar with the plans and we oppose them,” the Frankfurt-based Bundesbank said in a statement.

--With assistance from Gabi Thesing in London. Editors: Eddie Buckle, Leon Mangasarian

To contact the reporters on this story: Tony Czuczka in Berlin at aczuczka@bloomberg.net; Patrick Donahue in Berlin at pdonahue1@bloomberg.net

To contact the editor responsible for this story: Alan Crawford at acrawford6@bloomberg.net


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