Why are pro-Palestine groups calling for Ireland to prevent the sale of Israeli 'war bonds'?
PRESSURE HAS BEEN mounting on the Government to introduce legislation that would effectively stop Ireland facilitating the sale of Israeli bonds across the EU.
In recent weeks, there have been protests at the Central Bank of Ireland
calling for action
, while in Leinster House, Sinn Féin TD and chair of the Oireachtas Finance Committee, Maireád Farrel,l has said it is a priority for her to get the Central Bank in before the committee to discuss the issue.
Here's a rundown of where things stand.
What is an Israeli bond and why are some people calling it a 'war bond'?
Governments issue bonds as a way to raise money to fund things like new projects and infrastructure.
Government bonds are considered to be some of the safest types of investments globally because there is relatively low risk involved.
Following October 7, 2023, Israel has considered itself at war with Hamas.
The CEO of Israel Bonds (the organisation that sells the bonds), Dani Naveh has
spoken in the media
about how money generated from the sale of Israeli bonds has been used to fund these military operations.
In recent times, websites promoting the bonds emphasise their role in supporting Israel during the war – leading some to dub them 'Israeli war bonds'.
What does Ireland have to do with this?
Government bonds – like those sold by Israel – are generally sold to investors on international stock exchanges. Their sale is facilitated by central banks.
As Finance Minister Paschal Donohoe said in the Dáil recently, Israeli bonds are not listed for sale on the Irish Stock Exchange.
However, the Irish Central Bank has a special role in facilitating their sale in the EU.
To be sold in the EU, bonds from non-EU countries must have their bond prospectus (a legal document setting out details of the bond) approved by the Central Bank of a country that is in the EU.
Before Brexit, the UK carried out this work for Israel. After they left the EU, Israel chose Ireland to be its 'home country' for this purpose, meaning the Irish Central Bank is responsible for approving its bond prospectus.
Why is this an issue?
Pro-Palestinian campaigners and most Opposition political parties in Ireland argue that by carrying out this work, Ireland is facilitating Israel's actions in Gaza.
Their argument is that our Central Bank is allowing Israel to raise money for its war effort by enabling the sale of bonds through approving the country's bond prospectus.
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Over the last year, there has been a growing campaign calling on the Central Bank to stop approving the sale of the bonds in the EU.
However, the Central Bank has said it can only do this where it has the legal basis to do so i.e. in a situation where sanctions are introduced against Israel at an EU level or where there are 'National restrictive measures to the same effect'.
This is disputed by many, including Sinn Féin.
Helen Mahony, co-ordinator of Stop Funding Genocide, a campaign that is being run by the Ireland Palestine Solidarity Campaign (IPSC), told
The Journal
that she believes the Central Bank is wrong in its interpretation of its obligations.
'The thing about this EU Prospectus Regulation is that it's designed to set out technical standards that a prospectus has to reach. But implicit in that is that the prospectus is for at least lawful reasons. I mean, no EU regulation is designed to legitimise genocide or to legitimise criminal intent,' O'Mahony said.
'It makes no sense to say that an EU regulation is forcing somebody to become complicit in genocide. No organisation, neither a business nor a bank nor an educational institution, for that matter, or any institution is not bound by the Genocide Convention and not bound by international humanitarian law,' she added.
Is there an appetite to change the law nationally?
Within the Irish Government, currently, there is not.
But pressure has been mounting from the Opposition, with Sinn Féin, the Labour Party, Social Democrats and People Before Profit all in favour of introducing legislation that would enable the Central Bank to stop facilitating the sale of the bonds.
Sinn Féin's Pearse Doherty is due to introduce a bill on the issue in the coming weeks, although it is unlikely to get the support of the Government.
Finance Minister Paschal Donohoe was asked why the Government has not introduced its own legislation on the matter in recent weeks, and he said he did not intend to introduce legislation that would forbid the Central Bank from fulfilling its regulatory duties at EU level.
A cross-party motion is expected to be brought before the Dáil in the coming weeks, which will call on the Government to take action.
The motion has been campaigned for by the IPSC, which has said they have had positive interactions with political parties on it to date.
While the IPSC and O'Mahony support Sinn Féin's proposed bill on the matter, O'Mahony still believes the Irish Government and the Central Bank could act now to stop the sale of the bonds without any legislation being necessary.
O'Mahony made the point that Israel's blockade of Gaza is 'in part funded by Israeli bonds'.
'They wouldn't be going to Israel from Europe, but for the Central Bank of Ireland. So there's a direct line.
'The [Irish] Government could tell the Central Bank of Ireland that they must honour their obligations under the Genocide Convention, but instead they're both playing this game of smoke and mirrors and just kind of hiding behind what they claim are technicalities, but it's a complete misreading of the EU Prospectus Regulation as far as I can see,' she said.
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