Legal and academic circles across Europe are embroiled in an intensifying debate over the ethical, legal, and financial implications of ongoing ties with Israel, as the country’s actions in Gaza continue to reverberate through institutions and regulatory bodies. Ireland has emerged as a focal point in this controversy, with its Central Bank facing mounting pressure to halt the sale of Israeli state bonds, while universities and research institutions across the continent grapple with whether to continue collaborating with Israeli entities.
On August 28, 2025, a coalition of legal academics from across Ireland sent a forceful letter to the Governor of the Central Bank, demanding an immediate prohibition on the marketing and sale of Israeli state bonds in or from Ireland. The group’s call centers on the upcoming renewal of Israel’s bond prospectus, set for September 2. The academics argue that the Central Bank Governor possesses clear authority under European Union law—specifically Article 42 of the EU Markets in Financial Instruments Regulation—to refuse approval on the grounds of “significant investor protection concerns.” According to their letter, any participation in the Israel Bonds programme is “fundamentally incompatible with these legal standards” and exposes investors to legal risks, including potential complicity in genocide, both as a crime and a civil wrong.
Backing their position, the academics cite a recent recommendation from the Oireachtas Finance Committee that the Central Bank should stop authorizing the sale of Israel Bonds. The issue has also reached Ireland’s courts, with Social Democrats TD Gary Gannon lodging a High Court case in July 2025 challenging the Central Bank’s role. Protests are planned in the coming days, adding a visible layer of public pressure to the regulatory debate.
Since Brexit, Israel has relied on the Central Bank of Ireland as its “competent authority” for bond prospectus approval in the EU, enabling it to raise substantial funds from European investors for unrestricted state use over the past five years. Israel’s marketing campaigns have explicitly presented these bonds as a way to support its military campaign in Gaza. A Bloomberg report in February 2024 described a “bond spree” to fund the Gaza offensive, and Israel’s Annual Debt Report confirmed that the “Iron Swords” operation had sharply increased the state’s financing needs.
The Irish government has made its position clear. On May 28, 2025, the Taoiseach told the Dáil that Ireland considers Israel to be perpetrating genocide against the Palestinian people—a stance that has legal implications for state organs like the Central Bank. Ireland has also intervened in South Africa’s case at the International Court of Justice (ICJ), supporting an interpretation of the Genocide Convention that applies to Israel’s actions in Gaza. The academics’ letter warns that by continuing to authorize Israel Bonds, the Central Bank risks placing Ireland in “knowing and willful violation” of its obligations under international law, which include preventing genocide, ensuring respect for humanitarian law, and not supporting unlawful situations such as occupation and apartheid.
Several major international legal rulings bolster the academics’ argument: the ICJ’s orders requiring Israel to halt acts contributing to genocide, its 2024 advisory opinion declaring Israel’s occupation unlawful, and arrest warrants issued by the International Criminal Court for Israeli Prime Minister Benjamin Netanyahu and former Defence Minister Yoav Gallant. The letter also highlights direct financial risks for investors, who could face criminal liability for aiding or abetting genocide, sanctions that might block bond payments, and exposure under the international crime of aggression. A United Nations Human Rights Council report has warned that recent ICJ and ICC proceedings have “reshaped” corporate responsibility, making clear that companies and investors risk complicity in grave international crimes by supporting Israel’s economy.
Dr Pearce Clancy, one of the letter’s authors, emphasized the urgency of the situation: “The Governor must take steps to ensure that the Central Bank, as an organ acting on behalf of the Irish state, abides by international law. Any engagement in the Israel Bonds programme is fundamentally incompatible with these legal standards. It is therefore of paramount importance that the marketing and sale of Israel bonds is immediately prohibited, and that the renewal prospectus is rejected.” Dr Maeve O’Rourke, another co-author, added, “Despite being independent under Irish law, [the Central Bank] remains a state body and is bound by Ireland’s international obligations to prevent genocide. That means refusing to re-approve Israel’s bond prospectus.” As of August 29, 2025, the Central Bank had not commented on the letter or indicated whether it would authorize the renewal.
Meanwhile, the debate over Israel’s role in European public life extends far beyond finance. University campuses across Europe have become battlegrounds for questions about academic collaboration with Israeli institutions. The European Commission in July 2025 proposed suspending Israel’s participation in parts of Horizon Europe, the EU’s flagship research and innovation funding programme. Since 2021, Israeli participants have received 875.9 million Euro from Horizon Europe projects. The proposed suspension would target Israeli involvement in the Accelerator of the European Innovation Council, which supports start-ups developing dual-use technologies like cybersecurity, drones, and artificial intelligence. This move followed a report by the European External Action Service, which concluded that Israel’s actions in Gaza violate the principle of respect for human rights—a condition embedded in the EU-Israel Association Agreement since 2000.
Yet, the proposal failed to garner enough support among EU member states to pass, with Germany and Croatia among those opposed. The debate is set to resume after the summer break, but the split highlights the challenge Brussels faces in forging a common position. Germany, Israel’s closest ally in Europe, has been especially vocal in its opposition to sanctions. Prof Dr Walter Rosenthal, President of the German Rectors’ Conference, warned in June that suspending Israel from Horizon would “considerably weaken academia and research in Israel in its internationally recognised output as well as innovative capacity and would cause lasting damage to it as an important voice of academic reasoning in Israel.”
Despite the lack of EU-wide action, grassroots initiatives have surged. In Croatia, a group of scientists, researchers, academic workers, and students formed the Initiative for Academy of Solidarity and Epistemic Justice (IzASEP) in July 2024 to demand an immediate end to collaborations with Israeli institutions. By early August 2025, over 700 signatures had been collected in support of solidarity with Gaza. In Slovenia, the University of Ljubljana called on the European Commission to suspend Israeli participation in Horizon Europe and decided to refrain from joining new projects with Israeli partners. Several major Italian universities and Spain’s Universities Council have also suspended or reviewed collaborations based on compliance with international humanitarian law.
Belgian universities, spurred by student activism and protests, suspended cooperation with Israeli partners in 2023. Even the naming of the Université Libre de Bruxelles’ 2025 law graduate class after French-Palestinian MEP Rima Hassan ignited controversy, drawing criticism from French public figures who accused her of defending Hamas. The decision was ultimately approved after internal debate.
Not all European countries are on board with such measures. Universities in the Czech Republic and Hungary have not announced any suspensions or boycotts, and their governments oppose EU-level sanctions. Critics argue that academic sanctions undermine the principle of academic freedom and risk punishing individual researchers who may not support their government’s policies. They warn that cutting ties could stifle dialogue and innovation.
As the September 2 deadline approaches for Ireland’s Central Bank to decide on Israeli bond renewal, and with EU-level discussions on research collaboration set to resume, the coming weeks may prove decisive. The intersection of finance, law, and academia has rarely felt so fraught—or so consequential—for Europe’s relationship with Israel.