Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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15. To ask the Minister for Finance if he accepts that Article 127 of the Treaty on the Functioning of the European Union requires the Central Bank of Ireland to act with a view to contributing to the achievement of the objectives of the Union as laid down in Article 3 of the Treaty on European Union, including specifically the strict observance of international law; if he accepts that the sale of Israeli bonds currently facilitated by the Central Bank of Ireland contributes to the State of Israel’s actions which have been found in violation of international law by the International Court of Justice; if he is concerned by the comments of the Governor of the Central Bank of Ireland at the Joint Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach on 11 June 2025 that international law does not govern the Bank’s actions; and the actions he intends to take to ensure that the Central Bank of Ireland does take account the European Union’s objective of strict observance of international law in its decisions as set out in the Treaties. [38007/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, I would point out that the Central Bank of Ireland carries out its functions in accordance with all applicable laws.

While central banks have many powers and functions, their roles are confined to their mandate. Under the EU's legal framework, the European Commission is responsible for trade policy and trade relations with third countries. The Central Bank of Ireland cannot refuse to approve the Israeli bond prospectus on the basis of the International Court of Justice (ICJ) Advisory Opinion on the Occupied Palestinian Territories or on the basis of the ICJ provisional rulings in the ongoing case involving South Africa and Israel.

Under the Prospectus Regulation, a prospectus must be drawn up, approved and published when securities are to be offered to the public or admitted to trading on a regulated market in the EU. As competent authority, the Central Bank of Ireland is responsible for assessing whether a prospectus has been drawn up in compliance with the disclosure requirements of the prospectus regulation.

The specific disclosure requirements and the requirements for the prospectus approval process are specified in a European Commission delegated regulation, which supplements the prospectus regulation. The Central Bank of Ireland is required to approve a prospectus where it meets the standards of completeness, consistency and comprehensibility under the legislation. The law is also clear that, by approving a prospectus, the Central Bank of Ireland does not endorse the issuer and does not endorse the securities.

It is also important to once more state that the Central Bank of Ireland, in performing its EU duties in this regard, does not issue, sell, trade or list these bonds. Neither does it either authorise or supervise these bonds and they are not listed on a stock exchange the Central Bank regulates. Further, 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 regulation. In effect, the Central Bank is carrying out a role mandated by European law.

Furthermore, the Central Bank of Ireland has no mandate to impose sanctions on any state or person for the above mentioned breaches or alleged breaches of international law. It is for international bodies such as the UN or the EU to determine how to respond to these breaches and alleged breaches of international law, including to determine whether sanctions are necessary, which the Central Bank of Ireland would of course implement.

Finally, the Genocide Convention, which is an international treaty between States, has been given effect in Irish law by the International Criminal Court Act 2006. In accordance with the 2006 Act, it is an offence for any person, including the Central Bank, to commit genocide or a crime ancillary to genocide. The Central Bank of Ireland has, in its various public statements, noted this on a number of occasions.