LUXEMBOURG ACTIVISTS HAVE said they will “work with friends in Ireland” to prevent the European sale of Israeli bonds being facilitated in the country.

Protesters in Luxembourg have gathered outside the the headquarters of Luxembourg’s financial regulators in recent weeks to protest against its facilitation of the sale of Israeli bonds, while a protest is underway today outside the country’s Ministry of Foreign Affairs.

Until the start of this month, the Irish Central Bank facilitated the sale of Israeli bonds in the European market.

The Irish government was under pressure from activists and Opposition TDs and Senators to engage with the EU to amend the law so the Irish Central Bank could refuse to facilitate the sale of the bonds. 

However, this decision was taken out of the hands of the government and Central Bank when Israel decided to move its bond approval to Luxembourg at the start of September.

Opposition TDs hold up signs saying Stop funding genocide and Ban Israeli bonds during a vote seeking to prevent the sale in May. John Brady John Brady

The move came on the same day that the Irish Central Bank’s authorisation for the sale of Israeli bonds expired. 

In a document published by the Israeli government on 1 September, it noted that bonds would now be sold by the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (CSSF).

‘War’ bonds

Israeli bonds have to be registered with an international financial centre to meet technical requirements.

Previously, Israel got its bonds rubber-stamped in the European market by the UK, but after Brexit it shifted to Ireland to retain this access.

Sales of Israel Bonds have surpassed $5 billion since the 7 October attacks.

Israel Bonds are advertised as supporting the country’s economy and in recent times, websites promoting the bonds emphasise their role in supporting Israel’s war on Gaza.

Israel president Isaac Herzog has stated that Israel Bonds have a “crucial role during this time of conflict and war”.

‘Work with friends in Ireland’

Luxembourg campaigners today held a conference to discuss how best to oppose the approval of Israeli bonds in the country.

Franz Fayot, a member of the Luxembourg Parliament, said that while CSSF is “operationally independent”, it does “not act within a political void”.

He said he will be seeking a meeting with the CSSF and the Luxembourg Ministry of Foreign Affairs.

“This determination lies with the Ministry of Foreign Affairs, first and foremost,” said Fayot.

Fayot added that he “looks forward to continue working with my friends in Ireland to press this issue”.

Related Reads

Analysis: How Ireland’s Central Bank avoided making a decision on the sale of Israel’s ‘war bonds’

Israeli 'war bond' sales no longer facilitated by the Irish Central Bank

Ireland-Palestine Solidarity Campaign protest against Israel bonds outside Leinster House on 11 June Alamy Stock Photo Alamy Stock Photo

Meanwhile, Irish Senator Alice-Mary Higgins told the conference that during initial hearings with the Central Bank, the Oireachtas Finance Committee were “given very short and dismissive press reports about how their hands were tied”.

She added that while a move away from the Irish Central Bank in facilitating the bonds “seemed initially like a victory, we saw that they in fact had tried to pass the problem on to Luxembourg”.

Helen Mahony, who was the coordinator of a campaign to pressure the Central Bank to stop facilitating Israeli bonds, told that conference that “we need to ensure the bonds are not sold in Europe”.

She said it was “shameful and wrong”, both “morally and legally”, for any country to facilitate the sale of Israeli bonds.

She also accused the Irish Central Bank of “simply offshoring responsibility” to Luxembourg and the CSFF.

“We have a huge amount of work to do in, both Ireland and in Luxembourg,” said Mahony.

“It is heartening to see your response so quickly and so powerfully in Luxembourg, and we look forward to working with you.”