Germany refuses to use gold reserves for Eurozone bailout
08 November 2011
Gold is fast becoming a “currency” in Europe with many nations clearly aggressive about their gold holdings. The latest is Germany’s rejection of using its gold to fund the bailout. Though Germany has contributed billions of dollars in the bailout fund, the very action of rejecting to sell its gold highlights the importance nations have attributed to the yellow metal-that of safety in these turbulent times.
-Germany rejected proposals by France, Britain and the US to have German gold reserves used as collateral for the Eurozone bailout fund. German Economy Minister Philipp Roesler said on Monday that the German people’s gold reserves cannot be touched and “must remain off limits.”
“German gold reserves must remain untouchable” said Roesler, who is head of the Free Democrats (FDP), a partner in Chancellor Angela Merkel’s coalition. Roesler added his voice to opposition to an idea proposed at the G20 summit of using reserves including gold as collateral for the euro zone bailout funds.