Gary O'Callaghan: Gold profits in EU central banks should be used to alleviate crisis
Published 09/06/2011 | 05:00
As we stare down the barrel of a Greek default, the time has come for Europe's central banks to become more creative and constructive in their approach to the euro crisis.
An intriguing item on the consolidated balance sheet of those banks (at www.ecb.int) shows that they have revaluation earnings of €305bn, which have largely come from an increase in the price of gold since the system was formed.
Those profits are just sitting on account when the application of even one-third of this amount to some resolution mechanism could make a massive dent in Europe's spiralling debt.