Israel Shifts Diaspora Bond Approval to Luxembourg Amid Irish Opposition

In a strategic move, Israel has transferred the process of obtaining EU approval for its diaspora bond prospectus from Ireland to Luxembourg. This shift comes as opposition mounts in Dublin, largely driven by Israel's military actions in Gaza over the past two years.

Protests from Irish lawmakers and pro-Palestine groups have intensified the pressure on the Irish central bank, which was previously responsible for approving Israel's bond program under EU regulations. These bonds, primarily marketed within Jewish communities globally, support Israel's state finances, which have been strained by ongoing conflict.

Luxembourg, already part of Israel's tradable sovereign debt program, has agreed to handle the bond program's approval, ensuring uninterrupted global investor access. As Ireland remains one of the most vocal EU supporters of Palestine, this relocation maintains Israeli financial objectives while circumventing political adversity.

(With inputs from agencies.)