Kudos to Cuomo for leading the way on BDS

Gov. Cuomo’s issuance Sunday of an order banning New York State’s executive branch from doing official business with companies that participate in the boycott of Israel is the opening salvo in a campaign that can turn the tide on European hostility toward the Jewish state.

Cuomo neatly captured his administration’s goal: “If you boycott against Israel, New York will boycott you.”

Much of the discussion about the bill has revolved around its impact in the Empire State. But the ramifications will ripple far beyond these borders — and that’s very good news.

Western Europe is ground zero in the economic war on the Jewish state. Proponents of the boycott, divestment and sanctions (BDS) movement say they’re just trying to correct Israeli policies with which they strongly disagree. In truth, their economic assault on any and all Israeli companies reveals that they are hell-bent on isolating and delegitimizing the Jewish state itself.

Just which financial institutions are we talking about? A number of powerful Austrian and German banks provide financial services to BDS organizations.

Austria’s Bawag bank maintains an account for OKAZ-The Austrian-Arab Culture Center, a pro-boycott group that hosted the convicted Palestinian terrorist Leila Khaled in Vienna in April. Khaled is a member of the Popular Front for the Liberation of Palestine, which the U.S. and European Union have designated as a terrorist organization. Khaled hijacked TWA flight 840 on Aug. 29, 1969. On September 6, 1970, she hijacked EL AL flight 219.

When asked about terror finance, Bawag says it adheres to all anti-terrorism laws. New York City-based Cerberus Capital Management company owns 52% of the bank, and GoldenTree Asset Management — also located in New York City — has a 40% stake in Bawag.

Cerberus currently does business with New York State’s pension funds, and as a probable result of New York’s anti-BDS sanctions, a Cerberus spokesman told me on Tuesday the OKAZ account was closed.

Austria’s neighbor, Germany, has its shares of business-sponsored BDS activity. Commerzbank — the second largest bank in the Federal Republic — provides an account to an obscure BDS group located just outside its Frankfurt headquarters. The bank has fought tooth and nail to prevent a closure of the account.

In April, Sen. Mark Kirk of Illinois, which has an anti-BDS law of its own, said Commerzbank “may be one of several German banks facilitating accounts used by anti-Israel and anti-Semitic BDS groups,” and urged the Illinois Investment Policy Board to investigate these reports.

Germany’s Baden Wuttembergische Bank, like Commerzbank, has an office in New York City. The bank’s office in Stuttgart, in the southern German state of Baden-Württemberg, provides an account to the Palestine Committee Stuttgart BDS group — which uses its funds to promote an aggressive boycott campaign against Israel.

Disturbingly, the city of Stuttgart owns nearly 20% of BW, and the state owns roughly 25% of the bank. Stuttgart Mayor Fritz Kuhn supports the bank maintaining the BDS account.

As evidenced by Cerberus’ closure of the OKAZ account, financial pressure like that being wielded by Cuomo can turn the tide against BDS. Amid rising complaints, French banking giant BNP Paribas pulled the plug on the BDS Campaign account in Germany in February.

French bank Credit Mutuel severed its account with BDS France in May. In addition to the fear of possible New York sanctions, a new, tough anti-BDS law in France surely had a great deal to do with it.

Cuomo’s bill is promising. To go further, the state Legislature is working on an anti-BDS law that would extend similar provisions beyond executive agencies and offices to all state government.

One bill passed the state Senate earlier this year. Another is stalled in the Assembly.

Scores of BDS groups across Western Europe and other non-EU states have financial relationships with EU businesses that have offices in New York. They must understand that New York taxpayers are not going to enable their hostile, discriminatory anti-Israel campaign.

Weinthal is a Berlin-based fellow for the Foundation for Defense of Democracies. Follow Benjamin on Twitter @BenWeinthal.