A civic campaign · Luxembourg · 2026
Stop
Israel
Bonds
The law is clear. Stop financing international crimes.
Luxembourg finances illegal occupation and war. International law demands it stops.
#StopIsraelBonds
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The facts

What is happening

31%
of Israel's budget now goes to war
Defence consumption jumped from a historical average of 20% to 31.5% of total government spending in a single quarter, Q4 2023. It has remained structurally elevated near 30% through 2025, crowding out all civilian investment.
Israeli CBS National Accounts · 2025
$8B
in bonds in March 2024 alone
Israel issued $8 billion in international bonds in a single month. A further $5 billion followed in February 2025, and $6 billion in January 2026. Proceeds flow directly into the general state budget with no ring-fencing from military expenditure.
UN Special Rapporteur · Reuters · 2025–26
€417M
raised in the EU since Oct 2023
Between October 2023 and April 2025, €417 million in Israel Bonds were sold across France, Germany, Austria, Belgium and Ireland under CBI approval. Since September 2025, the CSSF has taken over as the approving authority.
Central Bank of Ireland · Report 2025
International law

What the law demands

01
Non-Recognition
States must not recognise the legal effects of illegal acts. Anything arising from Israel's illegal occupation has no legal value under international law.
ICJ Advisory Opinion · July 2024
02
Non-Assistance
All states must not render aid or assistance in maintaining Israel's illegal situation. Approving a prospectus that enables Israel to raise funds for "general financing" with no ring-fencing from military use risks falling within this prohibition.
ICJ Advisory Opinion · Art. 16 ILC Articles
03
Prevent Genocide
Under the 1948 Genocide Convention, every state must act the moment it learns of a serious risk of genocide. The ICJ confirmed this threshold has been met. Three separate orders in January, March and May 2024 each found the situation was worsening.
Genocide Convention · Bosnia v. Serbia · 2007
04
Duty to Cooperate
All states must use their leverage to end the illegality. For Luxembourg, Europe's largest ESG hub and a global financial centre, that leverage is concrete and immediate.
Jus Cogens obligation · all states
"Inaction by Luxembourg is not an option. There are certain things we have to do."
Franz Fayot · MP Luxembourg · March 2026
In March 2026, two independent legal opinions from the University of Luxembourg and Utrecht University confirmed: grave violations of international law by Israel are beyond doubt. Luxembourg has concrete obligations to act.
On 22 September 2025, Luxembourg formally recognised the State of Palestine. A state cannot recognise a people's right to self-determination while providing the financial infrastructure to fund operations the ICJ has found plausibly amount to their genocide.
The mechanism

How the bonds work

Israel Bonds are not standard sovereign debt. They are structurally illiquid, non-negotiable instruments sold directly to retail investors, religious organisations and municipal funds, bypassing the institutional market discipline that correctly prices in wartime risk.

The CSSF approved the prospectus on 1 September 2025 without prior consultation with Luxembourg's Ministry of Foreign Affairs. It wrote to Deputy Prime Minister Bettel only two weeks later to request the government's opinion.

The bond proceeds are fungible. They flow directly into Israel's general state budget with no ring-fencing from military expenditure, settlement construction, or any other state activity. Israel's own marketing, "Stand with Israel. Israel is at War," makes the purpose explicit.

Bond sales have ended in Belgium, Spain and Ireland. Under sustained political and legal pressure, Ireland's Central Bank transferred the prospectus to Luxembourg. The CSSF is now the last active gateway for Israel Bonds in the EU.

Issuer
State of Israel via DCI
↓
Approved by, transferred from Ireland
CSSF · Luxembourg · 1 Sep 2025
↓
Marketed to
Retail buyers · Religious orgs · Municipal funds
↓
Distributed across EU
Austria · France · Germany · Netherlands · Luxembourg
↓
Proceeds enter with no earmarking
Israel's general budget including war expenditure
Financial reality

War by numbers

Israel's national deficit · 2024
6.8%
Of GDP, up from 4.1% in 2023. Public debt rose from 61.5% to 67.9% in one year. In Q4 2023, government defence spending was the sole positive contributor to GDP growth.
Israel Bond Prospectus 2025 · Israeli CBS
Israel's yield vs Ukraine's war bond
3.96%
Israel's 10-year yield, against Ukraine's 1-year war bond yield of 25.05% and Russia's at 14.60%. Retail investors accept rates far below true war risk, effectively subsidising military spending.
investing.com · Israel Bonds Prospectus 2025
EU sales under CSSF · Dec 2025 to Feb 2026
€19M
Sold in just 10 weeks. 92.6% of sales were in denominations above €1,000. No independent audit or public breakdown has been published by the CSSF.
DCI EU Sales Reports · israelbondsintl.com
Sovereign credit rating downgrades
3x
S&P, Moody's and Fitch all downgraded Israel's sovereign credit rating after October 2023. Moody's enacted consecutive downgrades, reaching Baa1 with negative outlook. Retail marketing contradicts these institutional verdicts.
Moody's · S&P · Fitch · 2024–25
"Treasury bonds have played a critical role in funding the ongoing assault on Gaza."
Francesca Albanese · UN Special Rapporteur on Palestine · June 2025
Concrete action

What Luxembourg
can do now

01
Suspend and refuse bond prospectuses
The CSSF must immediately suspend the 1 September 2025 approval and refuse renewal. It has supervisory power to require supplemental information and suspend offers under Art. 23 of the Prospectus Regulation.
Financial regulator
02
Cooperate fully with the ICC
Luxembourg must support the International Criminal Court without reservation. An arrest warrant has been issued for Israel's Prime Minister. Cooperation with international justice is a legal obligation, not a choice.
International law
03
End trade with illegal settlements
Both legal opinions are clear: Luxembourg must prevent trade between enterprises here and companies operating in illegal Israel settlements. The Luxembourg Fonds de Compensation remains invested in companies on the OHCHR database.
Trade policy
04
Commission an independent legal study
The CSSF must commission an urgent independent study on Luxembourg's international law obligations, assessing the duty to prevent, non-assistance, and the adequacy of existing supervisory tools for sovereign issuers in conflict situations.
Due diligence
05
Coordinate with Ireland and notify ESMA
Ireland remains the home state for Israel bond prospectuses. If Luxembourg and Ireland act together and notify ESMA, Israel cannot sell bonds within the EU. Fragmented supervision must end.
EU coordination
06
Adopt national restrictive measures
At state level, Luxembourg can adopt national or EU restrictive measures to ensure its financial sector does not contribute to internationally wrongful conduct, as it did in response to Russia's invasion of Ukraine.
State policy
Go deeper

Resources

Full report · PDF
The Approval of the Israel Bonds Prospectus in Luxembourg
A comprehensive legal and financial analysis covering the prospectus mechanism, Israel's war economy, the international legal framework, and concrete recommendations for the CSSF and the Luxembourg government.
Anastasopoulou · Obeidat (Nashama) · Patone (ANPI Lussemburgo) · Sesti (LetzActForPalestine) · Supported by Collectives for Palestine
Download Report ↗
Public conference · YouTube
Conference on Luxembourg's Obligations and the Israel Bonds
Legal experts, civil society representatives and political figures discuss Luxembourg's obligations under international law and the role of the CSSF in facilitating Israel's access to European capital markets.
Watch on YouTube ↗
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Stop
Israel
Bonds
The law is clear. Stop financing international crimes.

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