GOVERNMENT HAS REJECTED a joint-proposal from the opposition which called on the Central Bank to stop facilitating the sale of Israeli bonds within the EU, an issue that has moved up the political agenda in Ireland in recent months. 

The motion, put forward by the Social Democrats and supported by Sinn Féin, People Before Profit and the Labour Party, sought the reversal of a previous government decision to block a bill calling for the same measure last month.

Members of those parties on Monday requested that a free “vote of conscience” take place on the issue – meaning that government TDs would not have to vote with their party.

The motion was defeated this evening 85 to 71 in the government’s favour.

Israeli State Bonds have been advertised as a method to support the country’s economy and, more recently, websites promoting the investments have emphasised their importance to Israel’s military operations in Gaza.

Some TDs, as a result, have dubbed the securities as “Israeli war bonds”.

Coalition-supporting TDs, independents Barry Heneghan and Gillian Toole, repeated their vote to support the opposition’s call.

Both TDs previously said that they had a right to vote, as independents, in a manner they agreed with, pointing out that the programme for government does not include references to the issue.

Bonds from countries outside the EU must have legal documents approved by a central bank from a member state in order for the securities to be sold within the European single market. In the case of Israel, the country is Ireland. 

A protest outside the Dáil today calling on government to support the opposition's motion. Alamy Alamy

The Central Bank itself is responsible for assessing whether the products it offers are compliant with these EU requirements.

Since Hamas’s attack on Israel on 7 October 2023 and Israel’s subsequent bombardment and siege of Gaza, there has been mounting pressure on the Government from pro-Palestinian activists in Ireland to stop the facilitation of the sale of these bonds. 

But, Governor of the Central Bank Gabriel Makhlouf today defended its offerings, telling TDs at an Oireachtas Committee that the UN’s Genocide Convention applies only to the Irish State, not the country’s banking regulator.

Activists have demonstrated at the site in Dublin over the last number of months and have called for legislation that would give Ireland the power to refuse the sale of Israeli “war bonds” over human rights concerns.

Speaking during a Fine Gael parliamentary party meeting this evening, finance minister Paschal Donohoe told members that oppositional TDs wanted the government to tell the state’s banking regulator what to do, despite its mandated independence.

The Dublin Central TD said government cannot approve legislation that impedes on the independence of the Central Bank for legal purposes. 

Opposition TDs argued this evening that, as the bonds are intended to fund the war in Gaza, Ireland has obligations under the UN’s Genocide Convention to use “all means likely to have a deterrent effect” on those suspected of committing such crimes.