A major financial standoff is growing between Europe and the U.S. Germany and Italy want $245 billion worth of gold returned from vaults under Manhattan. These two countries hold the second and third-largest gold reserves in the world. Their demand reflects growing distrust in U.S. politics, especially after President Trump’s attacks on the Federal Reserve.
Experts say this is the biggest threat to the dollar’s global status since World War II. Once a quiet concern, the issue has become a united campaign. To understand why this matters so much, we have to go back to how this all began.
Why Europe’s Gold Ended Up in the U.S.
After World War II, Europe sent gold to New York for safety. At the time, it made sense. During the Cold War, countries feared a Soviet attack. New York was seen as the safest place on earth for storing gold. It also made trade easier, since the U.S. was the world’s financial hub.
Today, the New York Fed holds around 6,330 tons of gold. Most of it belongs to other countries. Germany keeps about 1,200 tons there, and Italy about 1,177. But what once seemed safe now feels risky. And that shift is starting to change everything.
Trump’s Federal Reserve War Triggers European Gold Panic
President Trump’s recent remarks about the Federal Reserve have shaken trust across Europe. He said he might “force something” if interest rates don’t fall. He’s also pushing for the Fed to act more in line with his White House. This has caused deep concern among European leaders.
According to Reuters, Michael Jaeger from the Taxpayers Association of Europe warned that Trump’s control over the Fed could mean control over German gold, too. If U.S. monetary policy becomes political, so might decisions on foreign gold. That fear has pushed gold security to the top of Europe’s agenda.
European Taxpayer Groups Sound the Sovereignty Alarm
European taxpayer groups are now leading the charge to bring gold home. The Taxpayers Association of Europe has sent formal requests to German and Italian officials, calling for immediate action. President Michael Jaeger said central banks must always have full control over their gold. The group speaks for 29 taxpayer organizations, giving it strong influence.
According to the Financial Express, Jaeger also suggested full audits if gold is not returned. For them, this isn’t just about trust. It’s about being ready in case of a financial emergency. The push is also gaining traction with a growing political force.
Populist Movements Across Europe Amplify Repatriation Demands
Gold repatriation is gaining support from both left- and right-wing populist parties.
In Germany, Fabio De Masi from the BSW party told the Financial Times there are “strong arguments” for moving gold back during “turbulent times.” In Italy, the issue is also catching fire. Commentator Enrico Grazzini warned that leaving nearly half of Italy’s gold in America is risky, especially under Trump.
These parties are using gold to highlight national pride and economic control. Their message is simple: Europe should manage its own reserves. As support spreads, more leaders are being pulled into the debate.
Italy Escalates the Stakes with Parallel Gold Campaign
Italy’s move to join Germany has made this a Europe-wide campaign. Italy holds 2,451 tons of gold worth around $196 billion. About 48% of that is stored in New York, with the rest in Rome, London, and Switzerland. Italy’s economy is fragile, so access to its gold is vital during hard times.
Economist Michele Geraci says direct control would offer “greater flexibility during financial crises.” The push comes as Prime Minister Giorgia Meloni faces pressure to show more independence from both Brussels and Washington. Now, with two major economies involved, the pressure on the U.S. is growing.
Mainstream Conservative Leaders Quietly Back the Gold Exodus
This issue is no longer driven by fringe voices. Key conservatives are now backing gold repatriation. Peter Gauweiler, a former lawmaker from the Christian Social Union, said the Bundesbank “must not take any shortcuts” in protecting gold. Markus Ferber from the Christian Democrats wants officials to count the gold bars in person. Marco Wanderwitz, another CDU figure, confirmed that gold discussions are back on the table.
Since the CDU is likely to lead Germany’s next government, their support adds real weight. With both populists and mainstream parties on board, the movement is turning into real policy pressure.
Financial Experts Warn of Cascading Global Gold Exit
Experts now believe more countries may follow Germany and Italy’s lead. A 2025 survey by the Official Monetary and Financial Institutions Forum found that 70% of central banks now see U.S. political risk as a reason to move away from the dollar, twice as many as last year. German MP Peter Boehringer says 15 countries have repatriated or plan to repatriate gold.
The World Gold Council confirms central banks are buying over 1,000 tons of gold yearly. UBS now calls gold the second-largest reserve asset after the dollar. This growing shift may be just the beginning.
America’s Financial Prestige Faces Its Greatest Challenge
If nations start pulling their gold from the U.S., the impact could be massive. Since World War II, the Federal Reserve’s role as gold custodian has been a symbol of American trust and strength. That trust is fading.
The dollar’s share of global reserves has already dropped from 44% to 40%. UBS says the dollar looks “unattractive,” especially as the U.S. economy slows. A wave of withdrawals could rattle markets and hurt confidence in the Fed. Beyond money, the bigger hit might be symbolic. If allies stop trusting the U.S., it signals a major shift in global finance.
The End of Financial Colonialism and Birth of Monetary Multipolarity
The gold campaign by Germany and Italy is part of a much bigger change. It’s not just about moving gold. This about moving away from U.S. financial control. Trump’s policies sped up this shift, but it was already starting. The freezing of Russian reserves showed the world how fast political decisions can affect financial security.
Now, 76% of central banks expect gold to become more important in the next five years. Countries want assets they can trust. As confidence in the dollar weakens, the global financial map is changing. This may be the start of a new era.
