What are they and why is Ireland so heavily involved?

Last night, the Government has voted down a Sinn Féin bill that sought to end Ireland’s role in facilitating the sale of “Israeli war bonds”. The bill was defeated last night by 87 votes to 75, prompting a protest by opposition TDs in the chamber and renewed criticism of the Government’s stance on Israel.

What Are The “Israeli War Bonds”?

The Restrictive Financial Measures (State of Israel) Bill 2025 aimed to give the Minister for Finance the power to prevent the Central Bank of Ireland from authorising Israeli bonds for sale in the EU. Ireland, through its Central Bank, is currently the only EU member state approving these bonds, a role it took over from the UK after Brexit. Ireland is the only country in the EU which carries this burden.

These bonds, dubbed “Israel Bonds”, are not your regular investment product. They’re debt securities issued by the Israeli government to raise money from international investors. This money then goes directly into Israel’s state budget. What sets these bonds apart is how they are promoted and what the funds are used for. In recent years, particularly since the escalation of Israel’s military operations in Gaza, the bonds have been explicitly marketed with slogans such as “Israel is at war” and “Stand with Israel,” directly encouraging people to fund the country’s war effort.

Campaigners say this makes the bonds a mechanism for financing Israel’s actions in Gaza, which has killed at least 56,000. In January 2024, the International Court of Justice ruled that the charge of genocide against Israel is legally plausible. Additional UN reports and rulings have also affirmed that Israel’s actions in Gaza and its occupation of Palestinian territories violate international law.

Despite this, the Central Bank of Ireland renewed its approval for Israel Bonds in September 2024. Critics and opposition parties argue that by continuing to approve these bonds, Ireland is enabling the financing of war crimes. While the Central Bank insists that approving a bond prospectus is not an “endorsement” of the issuing government, opponents say the legal documents submitted by Israel fail to disclose key ethical and financial risks, including the fact that the money raised is supporting an internationally condemned military campaign.

Sinn Féin leader Mary Lou McDonald condemned the Government’s refusal to back the bill: “Israel doesn’t hide the purpose of these bonds. They emphasise ‘the crucial role of Israel bonds during a time of conflict and war.”

Independent TD Barry Heneghan, who voted in favour of the bill despite supporting the Government on other matters, said that “Ireland shouldn’t facilitate the sale of bonds that help fund the devastation in Gaza. This is about standing up for international law and basic human rights.”

Government leaders defended their position by arguing that the bill could breach EU law and set a dangerous precedent. Taoiseach Micheál Martin accused Sinn Féin: “So you bandy words around like ‘facilitating and complicit in genocide, which are a false narrative.”

The defeat of Sinn Féin’s bill has reignited debate over Ireland’s role in facilitating the sale of Israeli bonds in the midst of a mounting death toll in Gaza and global accusations of genocide. While the Government maintains its opposition is grounded in legal caution and EU obligations, critics argue that Ireland, through its Central Bank, is uniquely positioned—and morally obligated—to withdraw support for what they describe as financial backing for war crimes. As pressure builds both inside and outside the Dáil, calls for Ireland to reassess its complicity in the conflict show no signs of abating.