ABSTRACT

The United States (US) tendency to back Israeli positions in the peace process, while Europe tends to support Palestinian goals, is the most basic policy difference between the US and Europe. Despite having little practical leverage, Europeans often argue that more diplomatic and economic pressure should be exerted on Israel to be more accommodating in the peace process. Security is the primary focus of US policy in the region. The key tool for achieving it is military assistance and power, areas in which the US has a comparative advantage over the Europeans. The US provides Israel with $3bn-worth of military and economic assistance annually, and has awarded Egypt more than $2bn each year since Camp David because of Cairo’s willingness to make peace and to help ensure the country’s domestic stability. Europe pursues its main goals – overall political stability and friendly relations with regional states – with primarily economic means, its own area of comparative advantage.