Central Bank ‘cannot impose sanctions on Israel', Oireachtas committee to be told over approval of Israeli bonds
Governor Gabriel Makhlouf is to tell the Oireachtas Finance Committee that it is up to international bodies including the UN and the EU to respond to breaches of international law by Israel, and to determine if sanctions are necessary.
'The Central Bank cannot impose sanctions on Israel – for example by refusing to approve the Israeli bond prospectus – in circumstances where the EU has not imposed any such sanctions itself,' he will tell TDs and Senators.
The Committee is to question the Central Bank over its role in approving a prospectus – a legal document that bond issuers are required to prepare.
To be sold in the EU, bonds from non-EU countries must have their bond prospectus approved by an EU country. Israel traditionally had its European bond prospectuses approved in the UK, but turned to the Central Bank in Ireland for authorisations after Brexit.
In his opening statement to the Finance Committee, Mr Makhlouf will say he is 'absolutely appalled by the horrific loss of life and destruction we are seeing in Gaza and the occupied Palestinian territories.'
But he says the EU is responsible for trade policy: 'The Central Bank cannot impose sanctions on Israel – for example by refusing to approve the Israeli bond prospectus – in circumstances where the EU has not imposed any such sanctions itself,' he says,
'Unlike the EU sanctions against Russia after its invasion of Ukraine, the EU has not, at this time, adopted sanctions against the State of Israel. The Central Bank would of course implement any sanctions adopted by the EU that are applicable to the Central Bank's functions, as we have with Russia,' he says.
He will dismiss opposition party claims that the Central Bank could refuse to approve the Israeli bond prospectus on the basis the International Court of Justice ruling that Israel's presence in the Occupied Palestinian Territories is unlawful.
'This is incorrect,' his opening statement will say. 'The Central Bank cannot decide to impose sanctions for breaches or alleged breaches of international law.'
The Bank 'must carry out the statutory tasks and functions' assigned to it, he will say. 'We have to work within the law and the prospectus issued by the State of Israel meets the standards of completeness, consistency and comprehensibility required by the law. We will continue to carefully and comprehensively discharge our obligations under the EU Prospectus Regulation.'
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