Israel Shifts Diaspora Bond Approval Amid Irish Opposition

Israel has moved its EU diaspora bond approval process to Luxembourg from Ireland. This follows growing opposition in Dublin, where Irish lawmakers and pro-Palestine groups have urged the central bank to oppose the bonds. The move aims to ease tensions related to Israel's military actions in Gaza.

In a strategic pivot, Israel has transferred the process of obtaining EU approval for its diaspora bond prospectus from Ireland to Luxembourg, following intensifying resistance in Dublin. This relocation reflects escalating objections from Irish lawmakers and pro-Palestine advocates, who have pressed the central bank to halt the approval process.

Over the past year, Irish protestors have consistently criticized Israel's military campaign in Gaza, which health officials claim has resulted in over 63,000 civilian deaths. The conflict has intensified scrutiny on Ireland's role in facilitating the sale of Israel's bonds, which support the state's budget amid rising deficits.

The Central Bank of Ireland has maintained its legal obligation to approve prospectuses that meet established conditions; however, the decision to transfer Israel's program approval to Luxembourg aims to mitigate diplomatic friction. As the new prospectus finds approval, the focus now shifts to Luxembourg's regulatory environment.

(With inputs from agencies.)