The move means Luxembourg will now serve as the base for bringing Israeli government bonds to market across the European Union, taking over from the Central Bank of Ireland.

Luxembourg's Financial Sector Supervisory Commission (CSSF) has approved a new prospectus allowing Israel to offer government bonds on European financial markets, following the expiry of a similar authorisation previously granted by the Central Bank of Ireland. The approval, issued on Monday, is valid for 12 months and allows the bonds to be offered under the framework of EU prospectus regulations.

The previous authorisation had drawn widespread criticism in Ireland. Irish media report that the Irish Central Bank officially informed the parliamentary finance committee of its decision not to renew the approval, following increasing political pressure and calls to cease facilitating what critics describe as the sale of "war bonds".

Irish Social Democrat TD Gary Gannon voiced strong opposition, saying: "No EU financial institution should be involved in raising funds which are used to annihilate innocent civilians." He added that he was deeply disappointed that Luxembourg had taken over the role of facilitating the bond sales.

The bonds are marketed through the Development Company for Israel, which openly promotes the investment as a show of political support. Its website urges visitors to "Stand with Israel. Buy Israel Bonds. Now is the time." A link to the prospectus can be found here.

The CSSF's authorisation covers several types of bonds. However, the prospectus does not specify the precise use of proceeds. It simply states: "The net proceeds from the issue of the Bonds are intended to be used for the general financing purposes of the Issuer."

It remains unclear whether the Luxembourg government was consulted in advance about the CSSF's decision to take over from Ireland. RTL has contacted both the CSSF and the government to seek clarification.