Israel Shifts EU Bond Approval From Ireland to Luxembourg Amid Gaza Opposition

Israel has shifted the approval of its diaspora bond prospectuses within the European Union from the Central Bank of Ireland to Luxembourg's financial regulator amid increasing political and public opposition in Ireland. Irish lawmakers and pro-Palestine groups had pressured the Central Bank of Ireland to stop facilitating the sale of these bonds, citing Israel's military campaign in Gaza and the resulting civilian casualties. Although Ireland's central bank stated it was legally obliged to approve any compliant prospectus, the growing protests and political pressure led to the transfer of responsibility to Luxembourg's Commission de Surveillance du Secteur Financier. Ireland is one of the most pro-Palestinian EU states, having officially recognized Palestinian statehood and considering trade restrictions with Israeli settlements. The bond proceeds are intended for Israel's general financing purposes, but critics argue that the bonds indirectly support Israeli military actions. The move relieves the Central Bank of Ireland of a contentious role amid calls for changes in EU regulations to allow individual central banks to refuse such approvals.