No Israeli bonds on sale in EU for now, in de facto €2.2bn sanction

No one is trading Israeli bonds in Europe for now in a de facto €2.2bn per year sanction, even as the EU cannot formally agree to block even €250m of imports from illegal settlements. Israeli state-owned firm Israel Bonds needs an EU member state’s financial regulator to approve its bond prospectuses in order for sales to go ahead. The Central Bank of Ireland (CBI) used to do this for Israel under a 2017 EU law, until it passed the mandate to Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) in 2025, which also stopped doing it on 31 August, amid public disgust in both countries over Israel’s actions in Gaza. That meant the mandate legally reverted to the CBI on 1 September, giving it three options: 1. to resume doing the approvals itself; 2. to pass on the baton again to a more Israeli-friendly country, such as Germany; or 3. to refuse to pass on the mandate, but also not to issue any more prospectus approvals. The process is shrouded in secrecy due to financial privacy rules and its political sensitivity. To read this story, log in or subscribeEnjoy access to all articles and 25 years of archives, comment and gift articles. Become a subscriber for as low as €1,75 per week.Read without limitsAlready a subscriber? Login