Germany’s vast gold reserves have become the focus of renewed political and economic debate, as calls grow for part of the stockpile to be used to support households, businesses and public investment.

The German Bundesbank holds 3,350 tonnes of gold, making it the world’s second-largest national reserve after the United States. With gold prices recently rising above $4,700 per troy ounce, the value of Germany’s holdings has climbed to nearly €440 billion.

Marcel Fratzscher, president of the German Institute for Economic Research (DIW), has suggested that some of this reserve could be put to practical use. He described the gold stockpile as a valuable resource in times of economic strain and argued that selling a portion could help fund investments in infrastructure and education, while also easing financial pressure on consumers and businesses.

The proposal comes as Germany continues to grapple with rising living costs. Consumer prices remain elevated, with sectors such as transport seeing particularly sharp increases. Official figures show that the Motorists’ Index, which tracks driving-related expenses, was 6.7% higher in March than a year earlier.

Germany’s gold reserves are not all held domestically. About one-third, or 1,236 tonnes, is stored at the Federal Reserve Bank of New York, while another 404 tonnes is held in London. The remainder is kept in Frankfurt. All reserves remain under the ownership and management of the Bundesbank.

The overseas storage arrangement dates back to the post-war Bretton Woods era, when Germany’s trade surpluses were converted into gold. Although the Bundesbank repatriated 374 tonnes from Paris in 2017, most of its foreign-held gold remains in New York.

That has prompted fresh political scrutiny. Some lawmakers and advocacy groups have questioned whether Germany should continue to keep such a large share of its reserves abroad, particularly in the United States.

The Alternative for Germany party has called for the full repatriation of the country’s gold, while also suggesting it could serve as backing for a future national currency. The proposal has been widely rejected by mainstream parties, which have defended both the security of the reserves and Germany’s commitment to the euro.

Others have focused less on location and more on whether some of the gold should be sold. Supporters of that view argue that the reserves could be used more actively during periods of economic difficulty.

The Bundesbank, however, has consistently opposed any sale. It regards gold as a cornerstone of financial stability and a long-term safeguard for confidence in Germany’s monetary system.

While no immediate policy change appears likely, the discussion reflects growing pressure on policymakers to consider every available option as Europe’s largest economy faces mounting economic challenges.

Fuel prices across Europe remain significantly higher than before the US and Israeli strikes on Iran, even after a ceasefire helped ease some of the market pressure.

Petrol and diesel costs surged in the weeks following the military action launched on 28 February, when the United States and Israel carried out strikes against Iranian targets. Iran responded with retaliatory attacks across the region, stoking fears of supply disruptions in global energy markets. Although Washington and Tehran agreed to a ceasefire on 8 April, fuel prices have yet to return to pre-crisis levels.

Data from the European Commission’s Weekly Oil Bulletin show that the average price of petrol across the European Union rose from €1.64 per litre on 23 February to €1.83 by 20 April, an increase of 12%.

Several countries recorded much steeper rises. Belgium, Czechia and Bulgaria each saw petrol prices jump by 22%. Among Europe’s largest economies, France posted the sharpest increase at 18%, followed by Germany at 15%. Italy experienced a 7% rise, while Spain saw a more modest 3% increase. Petrol prices in Malta remained unchanged.

Diesel prices climbed even faster. Across the EU, the average price of diesel rose from €1.59 to €2.01 per litre over the same period, marking a 26% increase. That is more than double the rise recorded for petrol.

Bulgaria experienced the largest diesel increase at 43%. France followed closely with a 36% rise, while Estonia and Belgium recorded increases of 35% and 33%, respectively. Spain’s diesel prices rose by 27%, exceeding the EU average, while Germany and Italy saw increases of 23% and 24%.

Despite the recent pullback, fuel prices remain high in many countries. The Netherlands currently has the highest petrol price in Europe at €2.28 per litre, followed by Denmark at €2.22. Germany, Greece and France all report petrol prices above €2 per litre.

For diesel, the Netherlands also tops the list at €2.30 per litre. Finland, France, Denmark and Belgium are close behind, all above €2.19.

At the other end of the scale, Malta has the lowest fuel prices in Europe. Petrol there costs €1.34 per litre, while diesel stands at just €1.21. Poland and Bulgaria also rank among the least expensive markets.

Fuel prices had already begun climbing before the strikes, but accelerated sharply in March and early April. Diesel briefly exceeded €2.10 per litre before retreating after the ceasefire announcement.

The latest price surge highlights Europe’s continued vulnerability to geopolitical shocks in energy-producing regions. With taxes accounting for a substantial share of pump prices and conventional vehicles still dominating European roads, households and businesses remain exposed to swings in global oil markets.