Legal Opinion on Luxembourg's Potential Hosting of Israeli Bonds

This legal opinion concludes that Luxembourg’s approval of a prospectus for Israel Bonds for trading on the EU market carries a high risk of violating its fundamental obligations under international law. The analysis is grounded in the International Court of Justice’s (ICJ) recent findings: that Israel’s occupation of Palestinian territory is illegal and violates peremptory norms (jus cogens), and that there is a plausible risk Israel is violating the Genocide Convention in Gaza. These findings trigger two critical legal duties for all states: the duty of third-states not to aid or assist in maintaining such serious breaches of international law, and the positive duty to prevent genocide. Legal Luxembourg Israeli Bonds

Approving the bond prospectus would constitute prohibited “aid or assistance” because the fungible proceeds enhance Israel’s overall budget, directly supporting its unlawful activities. Furthermore, as a signatory to the Genocide Convention, Luxembourg has a duty to employ all reasonable means within its capacity to prevent genocide; denying market access is a clear and powerful economic lever. Granting approval despite this context would demonstrate a manifest failure of due diligence. Consequently, the opinion strongly recommends that Luxembourg deny authorization to uphold its international legal commitments.