EU lends $847 million to Israel amid Gaza genocide

The European Investment Bank is a partner in Israel’s crimes. (Oscar Romero / EIB)

The European Investment Bank has issued loans totaling more than $847 million to Israel since it began a war of extermination against Gaza in October 2023.

By approving such large-scale financial support, the EIB stands accused of violating the Genocide Convention. A cornerstone of international law, the convention places an onus on governments and public authorities to prevent and punish crimes against humanity.

As an official European Union institution and a major international lender, the EIB should not be allowed to dodge its obligations. So far, however, the Luxembourg-based bank has faced little scrutiny over how it is giving economic support to Israel.

I contacted the EIB asking if it was aware that the International Court of Justice had last year declared as plausible the case brought by South Africa which documents how Israel is committing genocide in Gaza.

Instead of answering that question, an EIB spokesperson pointed out that its loans were destined for projects that involved “business investment by underserved minorities,” water desalination plants, a light rail system in Tel Aviv and the development of a flu vaccine.

“The borrowers and financial counterparts for these projects are private companies and banks, and this financing is fully in line with EU and international law,” the spokesperson added.

Enabling violations

Contrary to what the EIB claims, the financing actually enables violations of international law.

The EIB’s intermediary for these loans is Israel’s Bank Leumi.

Leumi has long supported the construction and expansion of Israel’s settlements in the West Bank, including East Jerusalem. All of those settlements are illegal under international law.

Even though Leumi is listed on a United Nations database of corporations profiting from Israel’s crimes, the EIB has continued doing business with that bank.

In July last year, the International Court of Justice ruled that Israel’s occupation of the West Bank and Gaza is illegal. Through its cooperation with Leumi, the EIB is helping to perpetuate an illegal occupation.

Despite having a low public profile, the EIB evidently takes its image seriously.

After being criticized by environmental campaigners over its lending to schemes that guzzle fossil fuels, the EIB sought during 2019 to rebrand itself as a leader in addressing climate change.

The rebranding is undermined by how it has subsequently begun offering loans to arms manufacturers. As well as thriving on oppression and human rights abuses, the weapons industry is a huge polluter.

The loans to the weapons industry are in keeping with the EIB’s record of facilitating Israel’s crimes.

Among the firms availing of EIB loans are Italy’s Leonardo, which has provided guns fitted into Israeli naval vessels that have been used to attack Palestinians during the current genocide.

Commanding high salaries and various perks, the EIB hierarchy appears to operate in a bubble. It is vital that the bubble be pierced and that the bank is confronted with the horrific consequences of the crimes it has enabled.