Napoleon had an ambivalent relationship, Andrew Roberts explains (in Napoleon: A Life), with the Jewish population:
On May 30, 1806 Napoleon passed a ‘Decree on Jews and Usury’ that accused the Jews of ‘unjust greed’ and lacking ‘the sentiments of civic morality’, gave a year’s relief from debt repayment in Alsace and called a Grand Sanhedrin in order to reduce ‘the shameful expedient’ of lending money (something his own Bank of France did on a daily basis, of course).
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This was the first sign of hostility towards a people to whom Napoleon had hitherto shown amity and respect; henceforth he seems to have been uncharacteristically unsure of himself when it came to policy towards the Jews. Although he didn’t meet many Jews during his childhood or at school, and none of his friends were Jewish, during the Italian campaign he had opened up the ghettos of Venice, Verona, Padua, Livorno, Ancona and Rome, and ended the practice of forcing Jews to wear the Star of David.
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He had stopped Jews being sold as slaves in Malta and allowed them to build a synagogue there, as well as sanctioning their religious and social structures in his Holy Land campaign. He had even written a proclamation for a Jewish homeland in Palestine on April 20, 1799, which was rendered redundant after his defeat at Acre (but was nonetheless published in the Moniteur).
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He extended civil equality for the Jews beyond the borders of France in all his campaigns.
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Yet on his return to Paris after Austerlitz, Napoleon was petitioned by Salzburg businessmen and bankers to restrict Jewish lending to Alsatian farmers. Alsatian Jews made up nearly half of France’s Jewish population of 55,000, and they were blamed for ‘excessive’ usury in that curious inversion whereby people who borrow money under free contracts in an open market blame those who lend it to them.
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The Jewish elders answered the questions he posed brilliantly, pointing out that exogamous marriage was as unpopular with Jews as it was with Christians, that interest rates reflected the risks of non-repayment, and that French Jews were patriotic supporters of his Empire.
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Napoleon thereafter proclaimed Judaism one of France’s three official religions, saying ‘I want all people living in France to be equal citizens and benefit from our laws.’
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‘I thought that this would bring to France many riches because the Jews are numerous and they could come in large numbers to our country where they would enjoy more privileges than any other nation.’
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On March 17, 1808 he passed ‘The Infamous Decree’ which imposed further restrictions on the Jews, making debts harder to collect, conscription harder to avoid and the purchase of new trading licences compulsory.
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In Germany Jews became full citizens under Napoleon’s edict forming Westphalia in 1807, with special taxes on them abolished. Similarly, in 1811 the five hundred Jewish families of the Frankfurt ghetto were made full citizens, as were all Jews except moneylenders in Baden. In Hamburg, Lübeck and Bremen the entry of Napoleon’s troops brought civil rights for the Jews, however much the local rulers and populace hated it.
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There were only about 170,000 Jews in Napoleon’s extended Empire, one-third within the old frontiers of France,