ABSTRACT

The European Union (EU) has increasingly become involved in the Israeli Palestinian conflict since its initial first formal involvement in 1971. Despite this, it continuously has been seen as a marginal actor, compared not least with the US. However, the EU is by far the most important economic player for both Israel and the Palestinian self-rule areas in the West Bank and in the Gaza Strip, i.e. the Palestinian Authority. At the same time, the parties of the conflict have expressed a desire to have close linkage and healthy relations with the EU. Despite close linkages with the US, Israel's biggest trade partner is the EU, while the weak Palestinian economy has almost developed a dependence relation with the EU. The framework of the European neighbourhood policy that was initiated in early 2002 was aimed at securing that friendly associated neighbours would surround EU's new members.