German Gold Reserves ‘Untouchable’ for EFSF, Roesler Says

Germany won’t let its central bank’s gold reserves be used to bolster the power of the rescue fund for indebted euro-area countries, Economy Minister Philipp Roesler said.

“The German gold reserve must be untouchable,” Roesler said in an interview on Germany’s ARD television network today, echoing Chancellor Angela Merkel’s chief spokesman, Steffen Seibert.

Seibert denied a weekend newspaper report that using the Bundesbank’s gold and currency reserves was mooted as part of a debate on boosting the rescue fund, known as the European Financial Stability Facility, at the Group of 20 summit in France.

Germany rejected a proposal by some participants at the Nov. 3-4 meeting in Cannes to use the International Monetary Fund’s special drawing rights to bolster the EFSF, Seibert said in an e-mailed statement on Nov. 5, responding to the report in the Frankfurter Allgemeine Sonntagszeitung newspaper. “At no point in time” were the Bundesbank reserves on the table, he said.

“We are familiar with the plans and we oppose them,” a spokesman for the Frankfurt-based Bundesbank said.

To contact the reporter on this story: Tony Czuczka in Berlin at aczuczka@bloomberg.net’ Gabi Thesing in Frankfurt at gthesing@bloomberg.net

To contact the editors responsible for this story: James Hertling at jhertling@bloomberg.net; Craig Stirling at cstirling1@bloomberg.net

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