Legal action launched against Central Bank over Israel bonds investments
Lawyers for Gary Gannon lodged legal papers against the Central Bank in Dublin on Thursday.
It is alleged that the Central Bank's failure to ban the marketing, distribution and sale of Israeli bonds exposes investors to risks that have not been disclosed to them.
(The) continued issuing and trading of those bonds gives rise to significant investor protection concerns, in light of the complicity of Israel in genocide in Gaza, and the use of the proceeds of the Israeli bonds to facilitate same
Letters, seen by the PA news agency, sent to Gabriel Makhlouf, the governor of the Central Bank, in recent weeks by McGarr Solicitors, acting on behalf of Mr Gannon, claim that these risks were not made known to investors in prospectuses for bonds, which had been approved by the Central Bank.
The letter warns Mr Makhlouf that the 'continued issuing and trading of those bonds gives rise to significant investor protection concerns, in light of the complicity of Israel in genocide in Gaza, and the use of the proceeds of the Israeli bonds to facilitate the same'.
It goes on to say that the Central Bank is empowered under EU law to prohibit the marketing, distribution or sale of the Israeli Bonds.
'We call upon it to do so,' the letter adds.
There have been ongoing calls for the Central Bank to end its role in approving Israel Bonds for sale in the EU.
The bank is the designated authority in relation to the sale of Israel bonds in the EU, and has determined the securities meet the standards of the bloc's prospectus regulations.
Israel bonds have been advertised as supporting the country's economy and, more recently, websites promoting the securities emphasise their role in supporting Israel's military operations in Gaza.
Protesters and opposition parties have called for legislation that would give Ireland the power to refuse the sale of Israeli 'war bonds' over human rights concerns.
They say the bonds are intended to fund the war in Gaza, while Ireland has an obligation under the Genocide Convention to use all means likely to have a deterrent effect on those suspected of preparing genocide.
'Politicians have spoken too long, all the while a genocide is being inflicted upon the population of Gaza. The demands today are clear – act
Mr Gannon issued the letters to the bank about investor protection concerns relating to the bonds, as well as the use of the bonds to finance the war in Gaza at the end of last month.
In response, the Central Bank, through its solicitors, said that there is 'no valid legal basis' to support Mr Gannon's purported judicial review proceedings.
They claimed that Mr Gannon lacked locus standi to bring the proceedings and that the bank is satisfied it does not meet the relevant criteria to exercise its powers under EU law.
The letter also claims that judicial review proceedings would lead to court time being 'expended unnecessarily and substantial costs being incurred'.
However, Mr Gannon said the Central Bank has the power to stop the sale of the bonds.
The judicial review was formally issued on Thursday afternoon.
Speaking at a pro-Palestinian rally on Saturday, Mr Gannon said: 'Politicians have spoken too long, all the while a genocide is being inflicted upon the population of Gaza. The demands today are clear – act.
He added: 'On Tuesday, I'll be lodging papers against the Central Bank. Genocide can never be considered a technical matter – our only duty is to prevent it and punish those responsible.'
Read More
EU agrees €93bn worth of counter tariffs against the US if trade talks fail
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
2 hours ago
- Irish Examiner
Jim Power: Budget countdown begins with big promises
The publication of the summer economic statement has set the budgetary process in motion, and the destination will be reached in early October. The two relevant ministers have outlined a budget package of €9.4bn, with a net tax package of €1.5bn, and an expenditure package of €7.9bn. This expenditure package will be comprised of current expenditure increases of €5.9bn or almost 75% of the total; and capital spending of €2bn or just over 25% of the total. Proposed Vat cut On the tax side, the Government has given a commitment to reduce the Vat rate for part of the hospitality sector — the food element — to 9% and this would cost around €580m in foregone taxes. If this is delivered and applies from January 1 next, it means that effectively less than €1bn would be available for personal tax changes. To put this in context, it is estimated that a 1% indexation of the employee tax credit would cost around €230m in a full year, so to index for projected inflation in 2026 would cost somewhere in the region of €460m; or a 1% decrease in the 40% tax rate would cost around €540m. If the government delivers the Vat cut from the beginning of 2026, which it has committed to, the tax package will be small. So not surprisingly, there are suggestions that the cut might be delayed until July, thereby significantly reducing the cost in 2026. If this transpires, the hospitality sector would have every right to be aggrieved. Restaurants and food businesses are the most crucial element of our tourism product, and many businesses are struggling to stay afloat. Inflation Data released by the CSO last week show that in 2024, Irish food prices are the third highest in the EU-27 and are 12% above the EU average. In the year to May, agricultural output prices increased by 20.7%, with cattle prices up by 48%. These prices obviously feed into restaurant input costs, but the pressures are compounded by labour costs, insurance, water charges, commercial rates etc. I am a supporter of the reduced Vat rate, and I think it is now more appropriate to provide some limited support to a key employer of people all over the country, and a vital part of the tourism offering, rather than to pump money through excessive expenditure into an economy that is still doing quite well. Does the Irish economic cycle need a continuation of out-of-control current expenditure now? I think not. Even if the Vat cut is pushed out, the extent of the easing of the personal tax burden will be miniscule. We should have learned from the past We should have learned our lessons from the pro-cyclical policies of the past. The summer economic statement projects planned expenditure of €108.7bn this year, which is €3.3bn higher than planned in Budget 2025, and it is likely to turn out even higher than this latest projection. Not surprisingly, the Irish Fiscal Advisory Council is not happy and has justifiably accused the Government of 'poor planning and budgeting.' Obviously, the ability of the two ministers to deliver the proposed budgetary package, and indeed to deliver the ambitious, but detail lacking, revised National Development Plan, will be heavily contingent on the future performance of the economy, and especially the actions of Donald Trump. Downward creep in projections There is not a lot of detail in relation to economic assumptions in the summer economic statement, but it is interesting to note that for 2025 the Department of Finance is projecting growth of 2% in modified domestic demand (MDD), down from 2.5% in April, and 2.9% in Budget 2025 last October. For 2026, MDD is projected to grow by 1.8%, down from 2.8% in April, and 3% in Budget 2025. There is downward creep occurring in Ireland's economic projections, which seems logical in the context of Trump-induced uncertainty. In relation to the National Development Plan, it is quite amazing that we must await detail on the projected spend until close to budget time. What in the name of God has been happening since January? The aspirations outlined in the revised plan — such as energy, water, housing, transport infrastructure, and climate change — are difficult to argue with, but delivery on time and on budget will be essential. One hopes there will be greater control, transparency and accountability in relation to National Development Plan delivery than we have seen with major infrastructure projects such as the children's hospital and the infamous bicycle shed.
RTÉ News
4 hours ago
- RTÉ News
Trump, EU's von der Leyen to meet to clinch trade deal
European Commission President Ursula von der Leyen is set to meet US President Donald Trump to clinch a trade deal for Europe that would likely see a 15% baseline tariff on most EU goods, but end months of uncertainty for EU companies. Before the meeting, expected at around 4pm on Mr Trump's golf course in Turnberry, western Scotland, US and EU teams were in final talks on tariffs for crucial sectors like cars, steel, aluminium or pharmaceuticals. US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland yesterday and EU Trade Commissioner Maroš Šefčovič arrived this morning. Mr Lutnick said that the EU must open its markets for US exports in order to convince Mr Trump to reduce a threatened 30% tariff rate due to kick in on 1 August. He added that the EU clearly wanted to make a deal. "The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30% tariffs that he set," Mr Lutnick told 'Fox News Sunday,' adding that Mr Trump was looking to increase access for US firms. He said the ultimate decision would be up to Mr Trump, who has said there is a 50:50 chance a deal can be reached with the EU. Mr Lutnick said the US tariff deadline of 1 August is firm and that there would be no extensions. "So no extensions, no more grace periods. 1 August, the tariffs are set. They'll go into place. Customs will start collecting the money, and off we go." "We're cautiously optimistic that there will be a deal reached," said a Trump administration official, who spoke on condition of anonymity. "But it's not over till it's over." Ambassadors of EU governments, on a weekend trip to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officials to agree on the amount of leeway Ms von der Leyen would have in the talks. In case there is no deal and the US imposes 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93 billion ($109 billion) of US goods. EU diplomats have said a deal would likely include a broad 15% tariff on EU goods imported into the US, mirroring the US-Japan trade deal, along with a 50% tariff on European steel and aluminium for which there could be export quotas. The EU deal would be a huge prize, given that the US and EU are each other's largest trading partners by far and account for a third of global trade. EU officials are hopeful that a 15% baseline tariff would also apply to cars, replacing the current 27.5% auto tariff. Possible exemptions Some expect the 27-nation bloc may be able to secure exemptions from the 15% baseline tariff for its aerospace industry and for spirits, though probably not for wine. The EU could also pledge to buy more liquefied natural gas from the US, a long-standing offer, and boost investment in the United States. Mr Trump told reporters there was "not a lot" of wiggle room on the 50% tariffs that the US has on steel and aluminium imports, adding, "because if I do it for one, I have to do it for all." The US President, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival on Friday evening that Ms von der Leyen was a highly respected leader and he was looking forward to meeting with her. He said that Brussels wanted to "make a deal very badly". The EU now faces US tariffs on more than 70% of its exports, with 50% on steel and aluminium, an extra 25% on cars and car parts on top of the existing 2.5% and a 10% levy on most other EU goods. Mr Trump has said that without a deal, he would hike the rate to 30% on 1 August, a level EU officials said would wipe out whole chunks of transatlantic commerce. Further tariffs on copper and pharmaceuticals are looming. The uncertainty and higher tariffs have already hit profits of EU companies in several sectors. A 15% tariff on most EU goods would remove uncertainty but would be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal on all industrial goods. Seeking to learn from Japan, which secured a 15% baseline tariff with the US in a deal earlier this week, EU negotiators spoke to their Japanese counterparts in preparation for Sunday's meeting. For Mr Trump, aiming to reorder the global economy and reduce decades-old U.S. trade deficits, a deal with the EU would be the biggest trade agreement, surpassing the $550 billion deal with Japan. So far, he has reeled in agreements with the UK, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days."
Irish Daily Mirror
4 hours ago
- Irish Daily Mirror
Bob Geldof in furious Gaza rant as he shouts 'shut up' in live interview
Sir Bob Geldof has revealed that footage of malnourished youngsters in Gaza "enrages" him whilst condemning the UK Government for failing to take sufficient action. The Band Aid founder accused Israel's administration of "lying" about the absence of "no famine caused by Israel", declaring: "They're dangling food in front of starving, panicked, exhausted mothers." During an impassioned Sky News interview, an incensed Sir Bob questioned how Britain could develop a cutting-edge supercomputer this month whilst infants in Gaza were forced to survive on mere teaspoons of salt and minimal water supplies, demanding: "Shut up. What have we become that we can do this miracle and perpetuate this agony?". He also criticised the UK administration, claiming they had achieved "not enough". Sir Bob dismissed the idea that recognising Palestinian statehood - something Keir Starmer faces mounting pressure to do - would make any "difference" to the humanitarian crisis, reports the Mirror. Palestinian Yezen Abu Ful, 2, whose health has deteriorated due to lack of access to food and nutritional supplements. (Image: Anadolu via Getty Images) A charity organization distributed food to Palestinians facing severe difficulties accessing basic necessities due to Israel's ongoing blockade and military operations in the Gaza Strip on July 24, 2025. (Image: Anadolu via Getty Images) He urged Labour MPs to cease signing correspondence calling for recognition, branding it a form of "virtue signalling" at this stage, stating: "Enough. Guys, focus on the issue to hand." The political activist emphasised that the most urgent matter is to prevent starving mothers and infants from being exploited as "instruments of war". Regarding the Israel-Hamas conflict, he stated: "I'm really not interested in what either of these sides are saying. When you target infants and children, when their wounds are no longer capable of healing, when breastfeeding mothers can no longer do this, then everything goes out the window." Sir Bob expressed his views on the situation in Gaza, suggesting that Israelis who disagree with their government's actions should take direct action: "What's unfair is what's happening to these babies.... What's unfair is that one hour from the hunger, people are sitting down to their unthreatened dinners to turn on the next Netflix show." He boldly proposed a solution for Israeli protesters: "So if Israelis want to protest, get in your cars. This is very bold stuff, I know, sorry about that. Get in your car, stuff your cars full of food and drive through that border and let your own army stop you." Subscribe to our newsletter for the latest news from the Irish Mirror direct to your inbox: Sign up here.
