Aharon Porath writes:

In late May, the European Union announced a slew of new sanctions on Israeli settler organizations as well as individuals known for violently attacking Palestinians in the occupied West Bank. This was swiftly followed by six European governments, including Britain and France, imposing additional sanctions targeting “networks of financing and support for settler attacks.” France further announced that it was banning Israeli Finance Minister Bezalel Smotrich from entering its borders due to his promotion of settlements and annexation.

In an interview with the Israeli outlet Globes, EU Ambassador to Israel Michael Mann emphasized that these were not sanctions against the State of Israel, but rather “against specific individuals and organizations that we believe have violated human rights under the law.” Even as European governments are expected to discuss further sanctions in the coming weeks, Mann’s comments suggest that the EU is still careful to draw a clear distinction between the settlements and Israel.

While these sanctions made headlines on nearly every Israeli news channel, another form of economic pressure is mounting under the radar: the selling of Israeli government bonds. At best, instances of divestment receive a brief mention on the inside pages of the financial press. Yet while its scope remains limited, the scaling up of this campaign has the potential to significantly harm the Israeli economy. [Continue reading…]