They Did Not Ask Us

Both LSAP MP Franz Fayot and Minister for Foreign Affairs Xavier Bettel expressed satisfaction with the CSSF's decision to discontinue Israeli bonds, though they offered some minor criticism of the regulator. Bettel explained in a voice message: "They did not ask us back then when they made their decision, and today, again, they did not ask." The Minister for Foreign Affairs had previously, in September last year, accused the CSSF of handing him a "hot potato" after the regulator faced criticism over its authorisation of the Israel Bonds.[1]

Fayot believes the CSSF should not have approved these Israeli bonds a year ago. In response to comments that the financial regulator operates independently and that there are currently no European sanctions in place against Israel, he argued that the CSSF does not exist in a "vacuum." He noted that after their decision in September, the CSSF sought an opinion from the foreign ministry. He pointed to serious violations of international law and to opinions issued by the International Court of Justice.[1]

The CSSF director said this morning that only sanctions or an ICC genocide conviction would trigger a refusal. Fayot's response is that the ICJ has already issued opinions, and the CSSF itself sought the foreign ministry's view after the fact. The regulator says it applied the rules. The politicians say the rules do not exist in a vacuum. Both can be right.[1]

Antisemitism

Bettel has recently strongly condemned the Israeli government and its actions. At an economic forum, he also warned that one should avoid promoting antisemitism or messages such as "Do not buy from Jews." For Fayot, antisemitism is a "no-go," but he argued that this does not mean one cannot criticise the policies of the Israeli government. In his view, the latter is currently doing the most to fuel hatred against Jews.[1]

Double Standards

Fayot, who served as Minister of the Economy until 2023, argues that the European Union must finally stop its double standards and treat Israel like Russia: by freezing its trade agreement with Israel and sanctioning Israeli ministers. He added that Luxembourg, like other EU countries, could already impose sanctions on its own initiative.[1]

This morning, the CSSF director said the decision was strictly regulatory. This afternoon, the Foreign Minister said they did not ask. The LSAP MP said they should not have approved them in the first place. The CSSF applied the rules. The politicians are arguing about whether the rules are enough. The bonds expire on August 31. The debate does not.[1]