Tel Aviv bank index drops following think tank report on settlements
http://972mag.com/tel-aviv-bank-index-drops-following-think-tank-report-on-settlements/109160/
The degree of nervousness in Israel over potential future sanctions against local companies that do business in the settlements was evident for all to see Tuesday. Publicity surrounding an EU think tank report on the topic caused the Tel Aviv banking index to drop 2.3 points in less than an hour (a total of 2.46 points for the day).
The report, published by the European Council on Foreign Relations, included a series of recommendations intended to create a distinction between formal EU-Israeli ties and those that create complicity in its settlement activities in the West Bank. It put a special emphasis on the banking system. (Read the full report below.)
According to the reports’ authors, Hugh Lovatt and Mattia Toaldo, “differentiating between Israel and its settlement activities within the EU’s bilateral relations is one of most powerful tools at the EU’s disposal for challenging the incentive structure that underpins Israeli support for the status quo.”
The report recommends the European Commission “task its directorates general with reviewing their existing interactions with Israel to assess whether differentiate between Israel proper and the settlements.” A special emphasis is placed on the banking system, which conducts financial activities in the settlements — mostly mortgages and loans — but also has many interests in Europe.
