Against EU market rules to refuse Israel bond sales, says Makhlouf

The governor of the Central Bank will tell politicians that it cannot refuse to facilitate the sale of Israel war bonds as doing so would break EU capital markets rules.
Gabriel Makhlouf is due to outline the position to the Oireachtas Committee on Finance and Public Expenditure this afternoon.
In a written opening statement to the committee, which has been seen by RTÉ News, Mr Makhlouf is expected to say the Central Bank is "absolutely appalled" by what is happening in Gaza.
However, he will say that "we are required to perform" certain actions under EU rules, and that "we are established by law, we are empowered by law, and we must always act within and in line with the law".
Specifically, Mr Makhlouf will say that "one of the powers assigned to us is to perform the functions of a competent authority under the European Prospectus Regulation" and that "this means we must approve a prospectus once certain conditions are met".
He will say that: "We are required to approve a prospectus where it meets the standards of completeness, consistency and comprehensibility under the legislation.
"Our legal obligations are clear and we do not need guidance to follow them.
"For the avoidance of doubt the Central Bank does not issue, sell, trade or list these bonds. And in the case of Israeli sovereign bonds, we do not authorise or supervise them and they are not listed on a stock exchange we regulate.
"Under the Prospectus Regulation, it is up to the third-country sovereign to choose one EU member state to apply to for approval of its prospectus.
"The competent authority of the chosen member state is then obliged to discharge the relevant duties within the Prospectus Regulation. In effect the Central Bank is carrying out a role mandated by EU law."
Mr Makhlouf is also expected to say that while sanctions against Israel have been discussed in the Dáil, "the Central Bank has no mandate to impose sanctions on any state or person for breaches or alleged breaches of international law".
He will say: "Unlike the EU sanctions against Russia after its invasion of Ukraine, the EU has not, at this time, adopted sanctions against the state of Israel.
"The Central Bank would of course implement any sanctions adopted by the EU that are applicable to the Central Bank's functions, as we have with Russia."
The Central Bank's meeting with the committee is taking place on the same day as the Dail votes again on whether to ban the facilitation of Israeli war bonds in Ireland.
The cross-party motion was tabled during the Social Democrats speaking time this morning, with a Government counter-motion outlining the actions the Coalition has taken so far due to be voted on tonight.
During this morning's debate, Social Democrats deputy leader Cian O'Callaghan said "genocide, let's be clear, is taking place with the sale of Israeli war bonds" and that the Central Bank should "stop facilitating these bonds".
He was supported by a number of party colleagues, including Gary Gannon, who said he believes the Government's view is that "genocide is happening but Ireland must do nothing to affect GDP".
Sinead Gibney said whatever the rules may be "we have to try" as it could create a "domino effect" among other countries.
Sinn Féin Spokesperson on Finance Pearse Doherty described the Government's position as "shameful", alongside party colleague Sean Crowe, who responded to recent Coalition comments that Ireland's position is leading to tangible results.
"Gaza is flattened to the ground, people are starving, and you say you're getting tangible results?," he said.
"Ireland cannot be a conduit for blood money."
Labour TD Ged Nash said regardless of EU rules Ireland should not facilitate Israeli war bonds and should instead "challenge the state of Israel to take us to the international courts", a view repeated by Solidarity-People Before Profit TD Ruth Coppinger and Independent TD Catherine Connolly who said Government is engaged in "cognitive dissonance".
Responding to the Opposition's remarks, Minister for Finance Paschal Donohoe said there were "far more issues we agree on than do not agree on", before saying if he "refrained from charges of naivety" against some opposition TDs, then he would like them to "refrain from charges or complicity or collaboration" against Government.
Minister Donohoe said Government is in his view working "relentlessly" to "build a diplomatic coalition" on the issue, and outlined a number of measures the coalition has taken so far.
Responding to the key point being discussed, he said: "I want to again set the record straight, the Central Bank does not oversee the sale of Israeli war bonds" and that the opposition motion "wouldn't be consistent with EU law, it would undermine our obligations with the EU".
That view was also outlined by a number of Government TDs, including Fianna Fáil TDs Paul McAuliffe and Robert Troy.
Independent TD Barry Heneghan, one of a number of Independent TDs who are supporting Government, voted against the coalition on a similar motion last month.
During the Dáil debate, he said the world is witnessing "one of the darkest moments in modern history" in Gaza.
He said when a person living in his constituency, who is from Gaza and whose relatives are still there, asked him what Ireland is doing to end the violence, "I couldn't look him in the eye and say I was doing all I can".
"We've all seen the images. Gazan children are being starved to death, in full view ... It's not about a technicality, it's about us doing the right thing," Mr Heneghan said.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Irish Times

an hour ago

• Irish Times

Evacuation of 15 Irish citizens from Israel under way, Tánaiste says

An operation is ongoing on Sunday evening to evacuate a group of 15 Irish citizens and their dependents from Israel, Tánaiste and Minister for Foreign Affairs Simon Harris has confirmed. He also said Irish diplomats were working to assist a small number of Irish citizens from Iran but did not specify the number. Speaking to the media at Government Buildings on Sunday afternoon, Mr Harris said the evacuation operation was being done in partnership with other EU countries. 'There is an evacuation under way of Irish citizens and their dependents, 15 in total. We've been working closely with EU counterparts in relation to that 'I hope to be in a position to issue further details on that shortly,' he said.. READ MORE Mr Harris said the Department of Foreign Affairs had been working with a 'small number of citizens in Iran who have expressed a wish to be evacuated'. He said the challenges in evacuating citizens from both countries was 'not easy'. 'The airspace is closed, and the only way of being evacuated is over the land border, involving long journeys that are not only difficult (to navigate) but also dangerous,' he said. He praised the 'extraordinary work' being done by Irish diplomats in difficult and 'often very dangerous' circumstances. He said consular staff in both countries had a citizens' register and some 200 citizens had registered in Israel and 29 in Iran. Mr Harris also spoke by phone on Sunday afternoon with Iran's deputy foreign minister Majid Takht-Ravanchi about the US bombing of Iran. The call took place following a request from Iran's government. The Tánaiste said he got no indication from the Iranian minister that it would change its stance on refusing to return to negotiations. 'Being very honest, during the call I was met with an Iranian counterpart (who was) full of anger, and talking, in his words, about the aggressor. 'I made the point that he was talking to a representative of a European country that hasn't in any way been an aggressor, and in fact, that the European Union has been consistent in our approach and united in our approach across 27 member states that we need to see de-escalation, diplomacy and dialogue.' He said he did not get any indication as of now that the position of Iran has changed. 'That's not a reason enough to keep engaging the talks shortly,' he added.

Irish Examiner

2 hours ago

• Irish Examiner

15 Irish citizens being evacuated from Israel, Tánaiste says

15 Irish citizens are being evacuated from Israel amid the escalating conflict with Iran, Tánaiste Simon Harris has confirmed. The Government is working to evacuate a number of citizens from Israel and Iran, with approximately 200 based in the former and 29 in the latter. 'Right now there is an evacuation underway of 15 Irish citizens and their dependents, so 15 in total,' Mr Harris said. 'We've been working closely with EU counterparts in relation to that, and I hope to be in a position to issue further details on that shortly.' When the evacuation is complete, Mr Harris said the Government will have dealt with all current evacuation requests for Israel. The Tánaiste confirmed there were a number of citizens in Iran who wished to be evacuated, with work underway to try and get them out of the country. 'It's not easy work as you can imagine, the airspace is closed and the only way of being evacuated is over land border with often long journeys that are not without difficulty and not without danger,' Mr Harris said. The Fine Gael leader said the actions of the US President overnight had 'added a new layer of complexity and volatility to an already very dangerous tinderbox'. He added there is a 'real risk of spillover' in the conflict that could see it escalate into a further regional war. 'There is a real risk, by either a miscalculation or by intent, that already a very dangerous conflict spreads between the two countries involved,' Mr Harris said. Mr Harris also raised concerns about the possibility of oil routes being shut down, which would be a 'further economic worry'. The Tánaiste also confirmed his call with the Iranian deputy foreign minister, Majid Takht-Ravanchi, saying he was 'full of anger' over the attacks by Israel and the US. Mr Harris said Mr Takht-Ravanchi outlined the Iranian position that the US and Israel would need to 'learn lessons and pay a price'. He said the Government would continue to push for negotiations to end the war, adding there was 'no alternative' to diplomacy. It comes ahead of a meeting of EU foreign ministers on Monday, with discussions set to be dominated by the escalating war between Israel and Iran. Urgent need to 'de-escalate' tensions There is an urgent need to 'de-escalate' tensions in the Middle East after the US carried out strikes against Iran, Taoiseach Micheál Martin has said. Mr Martin called on 'all actors' in the Middle East to de-escalate the situation. "Diplomacy and dialogue is ultimately the only way to resolve these issues. Iran should commit not to develop nuclear weapons and disavow its nuclear and uranium enrichment programme,' Mr Martin said. "Nuclear safety is an issue here. Modern warfare is very destructive. It is civilians who ultimately suffer and that is why we need an end to these wars and an end to conflict.' Speaking to RTÉ, Mr Martin said the world should not forget about 'the catastrophe that is still unfolding in Gaza' while the war between Israel and Iran is ongoing. This satellite image provided by Maxar Technologies shows damage at the Fordo enrichment facility in Iran after U.S. strikes, Sunday, June 22, 2025. Picture: Maxar Technologies via AP Tánaiste Simon Harris said he was "closely monitoring" the situation in Iran after the overnight strikes by the US. It is understood that Mr Harris has spoken with the Iranian deputy foreign minister, Majid Takht-Ravanchi, after the overnight attacks. The call took place due to a request from Iran's government, with similar calls also taking place between Iranian officials and counterparts in Saudi Arabia, Jordan and Egypt in recent days. Mr Harris was said to have expressed 'grave concern' at the overnight escalation, while adding it was important Iran engaged in formal talks to de-escalate the conflict. "The risk of an extremely dangerous spiral of escalation in relation to Iran and Israel is now more real and more likely than ever before," Mr Harris said. "There is an urgent need for de-escalation, dialogue and diplomacy." Mr Harris said: "Europe, including Ireland, is fully united in the clear view that Iran should not be allowed to possess nuclear weapons. "The way to address this was always through a negotiated solution. Any alternative to that is simply too dangerous for civilians, for the Middle East region and for global security." He added that discussions would be taking place among EU foreign ministers in the hours ahead to consider "the next steps Europe can usefully play to support de-escalation". Mr Harris added he is aware of the large contingent of Irish peacekeepers in Southern Lebanon, saying he is receiving regular updates from the chief of staff of the Defence Forces. Mr Harris said the US President's actions have resulted in an 'extraordinarily dangerous escalation of a conflict that could already be described as a tinderbox'. 'I need to be very clear and very blunt. We're now entering a moment of particular danger, because I think the chances now of a spiral of escalation are more likely than ever before,' Mr Harris said, speaking on RTÉ Radio's This Week. 'There is a real chance of the international community losing all control of this very, very volatile conflict.' Asked if international law norms have gone out the window, Mr Harris said it was 'sadly true'. 'The only way this will be resolved and the only way really people can step back from the brink now is through de-escalation, diplomacy and dialogue,' Mr Harris said. On Irish citizens seeking to leave Iran, Mr Harris said it was an 'ongoing situation' but he would have a significant update later on Sunday.

Irish Post

2 hours ago

• Irish Post

Tánaiste warns of 'spiral of escalation' following US attacks on Iran's nuclear sites

TÁNAISTE Simon Harris has warned of a 'spiral of escalation' following US attacks on Iran's nuclear facilities. Speaking last night, US President Donald Trump said American strikes had 'completely and totally obliterated' the sites at Fordow, Natanz and Esfahan. Iran's Foreign Ministry, meanwhile, has called the attacks a 'grave and unprecedented violation' of international law and called on the UN Security Council to 'unequivocally condemn this criminal act of aggression by the United States'. Tensions rose in the region on Friday, June 13 after Israel launched a series of strikes on six cities in Iran, citing concerns over the country's nuclear capabilities. — Donald J. Trump (@realDonaldTrump) June 21, 2025 Iran, who says its nuclear development programme is solely for peaceful purposes such as energy, responded with retaliatory strikes. Trump said this week that he had yet to decide whether to get involved in the conflict but after confirming the strikes last night, hailed them 'a spectacular military success'. "There will be either peace or there will be tragedy for Iran far greater than we have witnessed over the last eight days," he added. In a separate social media post (above), the president of the US ­wrote: "A full payload of BOMBS was dropped on the primary site, Fordow… NOW IS THE TIME FOR PEACE!" 'Urgent need for de-escalation' In a statement today, the Tánaiste said he was 'closely monitoring' the situation following the strikes. "The risk of an extremely dangerous spiral of escalation in relation to Iran and Israel is now more real and more likely than ever before," said Mr Harris. "There is an urgent need for de-escalation, dialogue and diplomacy. "This has been the focus of my engagement with EU partners and countries in the region since this current crisis began. "It will remain Ireland's priority in the hours and days ahead. Later today, I will travel to Brussels for a meeting of EU Foreign Ministers. "Europe, including Ireland, is fully united in the clear view that Iran should not be allowed to possess nuclear weapons. "The way to address this was always through a negotiated solution. Any alternative to that is simply too dangerous for civilians, for the Middle East region and for global security." Tánaiste Simon Harris has called for 'de-escalation, dialogue and diplomacy' (Image: JORDAN / AFP via Getty Images) He added: "I am also very conscious of the large presence of Irish peacekeeping troops in Southern Lebanon and their safety is of paramount importance. "I continue to receive regular updates from the Chief of Staff on measures being taken to keep them safe at this volatile time. "We remain in close contact with our Embassies in the region and are supporting those Irish citizens who wish to leave. Staff from our Embassy in Tehran departed Iran on Friday." His words were echoed by the Taoiseach, who similarly claimed that Iran should not be allowed to develop nuclear capabilities. "There is an urgent need for de-escalation, dialogue and diplomacy in the Middle East," said Micheál Martin. "Iran should unequivocally disavow the development of nuclear weapons. A negotiated solution is the way forward. "We remain in close contact with international partners ahead of the EU Council." In a statement to the United Nations Security Council on Friday, International Atomic Energy Agency (IAEA) Director General Mariano Grossi said: "The IAEA can guarantee, through a watertight inspections system, that nuclear weapons will not be developed in Iran." Speaking this morning, Mr Grossi said he will call an emergency meeting of the IAEA Board of Governors tomorrow. US has 'launched a dangerous war' against Iran In a statement, the Iranian Foreign Ministry dubbed America's strikes a 'brutal military aggression against Iran's peaceful nuclear facilities'. "The world must not forget that it was the United States that, in the midst of a diplomatic process, betrayed diplomacy by supporting the genocidal and lawbreaking Israeli regime to impose a war of aggression on the Iranian nation," it added. "Now, in completion of that regime's unlawful and criminal acts, the United States itself has launched a dangerous war against the Islamic Republic of Iran. "It has now become abundantly clear to all that the very regime which enjoys permanent membership in the Security Council is beholden to no principle or morality and will stop at no illegality or crime to serve the aims of a genocidal, occupying regime." The Washington-based Human Rights Activists News Agency reports that as of Saturday night, 865 people had been killed in Iran by Israeli strikes, including 363 civilians, with almost 3,400 injured. Meanwhile, Israel said 23 people had been injured on Friday by Iranian strikes in the north of the country. See More: Donald Trump, Iran, Israel, Simon Harris