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Italian Government wanting to nationalise the central bank and take ownership of the gold

Summary:
I had blogged on Italian government wanting the gold managed by the central bank. They have prepared a draft law and asked ECB for its view: The draft law on Banca d’Italia’s ownership structure provides that the capital shares of Banca d’Italia currently held by private sector entities shall be purchased by the Ministry of Economy and Finance at a nominal value of 1000 lire as set by specified provisions of Italian law dating from the 1930s. The draft law further provides that, after such transfer, the Ministry of Economy and Finance may transfer its shareholding, or part of it, only to public sector entities. A governmental delegated regulation to be enacted within three months from the entry into force of the draft law will regulate the procedures for transferring the shares. …..

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I had blogged on Italian government wanting the gold managed by the central bank.

They have prepared a draft law and asked ECB for its view:

The draft law on Banca d’Italia’s ownership structure provides that the capital shares of Banca d’Italia currently held by private sector entities shall be purchased by the Ministry of Economy and Finance at a nominal value of 1000 lire as set by specified provisions of Italian law dating from the 1930s.

The draft law further provides that, after such transfer, the Ministry of Economy and Finance may transfer its shareholding, or part of it, only to public sector entities. A governmental delegated regulation to be enacted within three months from the entry into force of the draft law will regulate the procedures for transferring the shares.

…..

The explanatory note states that, without prejudice to compliance with international obligations deriving from the Treaties, spelling out explicitly that the ownership of the gold reserves remains with the Italian State seems necessary in light of the hybrid nature acquired by Banca d’Italia over time due to several
legislative interventions. The reference to the hybrid nature of Banca d’Italia seems to refer to the Banca d’Italia’s nature as a public law institution predominantly owned by private sector entities.

Battles continue..

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Amol Agrawal
I am currently pursuing my PhD in economics. I have work-ex of nearly 10 years with most of those years spent figuring economic research in Mumbai’s financial sector.

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