Is it really true that Britain's gold reserves would be transferred to Germany in the event of monetary union?
The arrangements for Economic and Monetary Union are set out in a Protocol annexed to the Maastricht Treaty signed by the British Government in 1992. Article 30 of the Protocol would require Britain, on joining EMU, to transfer around £8,000 million of our gold and dollar reserves irrevocably to the European Central Bank in Frankfurt, Germany.
Article 42 provides that more of our remaining reserves could be transferred to the European Central Bank if a majority of the other EMU countries required it.
Britain would not be able to veto this process.
If so, perhaps holders of these German gold bonds from between the two World Wars might end up with Britain's bullion!
Good luck, Tampa investors.
UPDATE
The suit for German gold was brought by a farmer called Ronnie Fulwood. Here's the (English edition) German Spiegel article from 2004. His attorneys seem to have a history of long-shot claims, as this blog from May 2007 explains.
2 comments:
but we are not joining the emu.
there is a good list of economics blogs on currencytrader. net
Hi CU:
We are not joining emu... YET. These people are devious, patient and persistent. Look at how they have reheated the dinner we rejected, minus one or two of the vegetables, and expect HMG to persuade us to eat it. It's all for the Cause, in which they passionately believe. They are unlikely to be stopped by our shilly-shallying government.
Will look at CurrencyTrader - thanks.
By the way, what will currency traders do when the euro (or the gold dinar) is the world's money?
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