Luxembourg Stops Selling Israel Bonds, Says Finance Minister
Luxembourg Drops EU Approval of Israel Bonds
The finance minister of Luxembourg confirmed that the country will no longer approve sales of Israel bonds in the European Union. He said the decision was made by Luxembourg’s financial regulator, the CSSF, which chose not to extend the bond programme after its 31 August deadline.
Campaign groups across Europe have long argued that these bonds help fund Israel’s wars in Gaza, Lebanon and Iran. They say the money raised goes straight into the Israeli treasury as general funding while military spending rises sharply.
The minister defended the regulator, claiming it followed European rules and that critics were unfairly targeting it. He insisted the move was about regulatory compliance, not political pressure.
However, activists point out that the regulator’s decision came at a time of intense legal and political campaigns against the bonds. In May, groups like Amnesty International held a conference in Luxembourg to warn that selling these bonds could make EU states complicit in Israel’s actions in Gaza.
Israel bonds are issued by the Development Corporation for Israel, marketed with slogans such as “Stand with Israel. Israel is at War.” They are sold to the public and religious organisations, not directly by the Israeli government. Since October 2023, they have raised about $7.7 billion for Israel’s general budget.
The bonds were originally regulated in Ireland, but after pressure from Irish lawmakers and civil society, the central bank withdrew its approval. Luxembourg then stepped in to act as the EU regulatory home for the bonds, a role it later decided to abandon.
If no other EU member state accepts responsibility for the bond programme, Israel will be unable to sell them within the bloc. Campaigners aim to prevent a transfer to Germany or any other willing host, hoping to cut off this source of war funding.
Amnesty International and other groups argue that allowing these bonds to be sold would amount to supporting genocide. They call on EU states to refuse any transfer or new approval, stressing that the financial impact could hurt Israel’s economy and its ability to import weapons.
The decision reflects growing pressure on European regulators to align financial practices with international law and human rights concerns. It also highlights how market tools can be used to influence geopolitical conflicts.
