Dublin’s latest obsession: Israel’s European bond distribution

The Irish government appears to feel saddled by that most inconvenient of institutions, an independent central bank. That is, at least, when it comes to the Central Bank of Ireland’s role as the competent authority mandated to approve prospectuses issued as part of the State of Israel’s European bond distribution programme. When it comes to Israel, of course, Dublin has a different set of standards.

EU law provides the context. Bonds marketed to the public in various European countries must clear an administrative hurdle. Under EU law, a “competent authority” must approve the prospectus to ensure completeness, consistency and comprehensibility of the information. For bond prospectuses relating to the State of Israel, the CBI was appointed competent authority, replacing the UK’s FCA after Brexit. The CBI’s independence in this role is causing the Irish government much discomfort.

That discomfort is now about to come to a head. Last year, the CBI approved the transfer of prospectus approval for Israel bonds to the CSSF in Luxembourg. The CSSF approved a new prospectus for the State of Israel on 1 September 2025, but that approval will expire at the end of August 2026 and will need to be renewed. The CSSF appears to not want to continue in that role.

Aware its legislative hands are tied domestically the Irish government wants to change EU law to better suit its politics of hate for Israel. Changing EU law to allow Dublin to use what is an administrative process as a political opportunity to erect a barrier to Israel’s continued use of European bond markets would disrupt the orderly functioning of the markets, remove investor choice and cast the markets in the image of Dublin’s anti-Israel agenda. This is, of course, exactly what Hamas, Hezbollah and the IRGC would want.

For the issue it faces at the end of August, behind the scenes talks may result in responsibility reverting to the CBI, staying with the CSSF or switching to another competent authority. We will find out in the coming days. Regardless of the outcome, huge damage has already been done to Ireland.

The fact that Ireland is even attempting to change the playing field raises questions over whether it is willing to circumvent the independence of its own central bank. Preferring its own political agenda to the proper functioning of the European debt capital markets is a red flag for investors everywhere.

This has echoes of a certain Europe-wide song contest. Dublin didn’t want Israel participating in that either. Ireland’s response was to boycott herself in the foot by not participating, while the contest went ahead. By that same school playground logic, rather than try to block Israel, Ireland could always decline to access the EU debt capital markets for its own financing needs.