Germany proposes to Spain and Italy to sell gold to reduce debt

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by SS & SS

Germany proposes to Spain and Italy to sell gold to reduce debt

German political parties CDU and FDP, which part of the coalition government, proposed that European Union countries in financial difficulties to sell part of its gold reserves to reduce their debt before resorting to its European partners, as recorded by the Financial Times Deutschland. The German newspaper notes that, due to the sharp increase in the price of gold, both of which have added this new demand in countries with problems in order to reduce its deficit. The vice chairman of the CDU parliamentary group, Michael Fuchs, noted that those economies that have to sort out their budgets may resort to privatization or sale of its gold reserves, while the FDP financial expert, Frank Schäffler said these countries “should use their assets before asking others for help.”

Germany and the International Monetary Fund (IMF) , whose value would be approximately 134,000 million (93,800 million euros) the current price. However, financial experts warn that the sale of gold reserves would not solve the structural problems that exist and which would only be “a drop in the sea,” while dynamite investor confidence, according to analyst Commerzbank raw materials, Eugen Weinberg.