EU, Israel Relations Reach Rock Bottom as Spain, Ireland and Norway prepare to recognise Palestine
Today, many state and local governments in the United States are investing in Israeli bonds, as the government is tempted by guaranteed high profits and state subdivisions for Israeli debt. However, this sort of investment has spurred some disagreement amongst the local people.
Since the attacks on the south of Israel by Hamas on October 7, the US state investments in bonds of Israel have intensified. One year ago, they sold bonds, reaching a record high of $ 3 billion. This force arose due to the current necessity to finance its war in Gaza and the willingness of many US states to invest in Israeli debt instruments.
Palm Beach County in Florida is now the biggest foreign investor in Israeli bonds, accounting for over $700 million of the $4—sixty-seven billion portfolio aimed at the foreign market. Joseph Abruzzo, the clerk of the circuit court and comptroller, announced this in March.
“I want to be associated with what I believe is the leading friend we have in the whole world – Israel”, Abruzzo said when speaking to the Jewish Press Agency. “As such, they are extremely secure investments. You are getting an excellent Bang for Buck as far as county taxpayers are concerned, and for us, it made perfect sense from a risk management perspective. ”
However, the measure has met local opposition, although it promises great financial returns. Local complaints in Palm Beach County: Some of the residents have also taken their case to court, suing the county, and others flocked to the local courthouse to protest.
“Our tax money should be addressing our needs, not financing genocide,” a local woman who only opted for the first name Lydia said to WPTV news.
Abruzzo called the action a wasted legal proceeding and expected its dismissal.
Thus, Palm Beach County is no exception to this tendency. Ohio Treasurer Robert Sprague later in May announced to undertake the buying of $30 Million two-year fixed-rate Israeli bonds.
“It may be observed that with its long history of offering reasonable interest rates and timely and secure returns on the repayments, Israel Bonds remains a good investment option for Ohio,” Sprague said. “We are pleased to be able to carry on with this state tradition of buying these bonds. ”
Even now, with Palestine mercilessly bombarded by Israel and world powers increasingly isolating the Jewish state over its operation, which triggered over 36,050 Palestinian fatalities and 81,026 injuries, investors do not seem to be bothered at all. The International Court of Justice also puts pressure on Israel and demands the arrest of its leaders through a spokesperson of the International Criminal Court. However, these geopolitical pressures have not influenced investors away from the region and the continent. Despite Moody’s downgrading of the credit rating on January 23, 2015, Israel sold global bonds for a record $8 billion in its first international sale since October 7.
It shows that the existing debate on these investments increases the tension between the financial aspects of decision-making and local people’s concerns about morality. Since the returns that states and countries demonstrate are impressive, the issue of ethical investment, thus Israeli bonds, will not end soon.
