The European Union’s approach to the Israeli-Palestinian conflict is a tale of two distinct policies, highlighted by its latest proposal. While moving to sanction Israel and some of its leaders, the EU continues to be a major financial supporter of the Palestinian Authority (PA).
The announcement of potential punitive measures against Israel was made by the same European Commission that provides substantial aid to the PA to support its institutions, pay salaries, and fund development projects. This dual-track approach underscores the EU’s long-standing policy goal: a two-state solution.
The EU’s actions can be seen as a “carrot and stick” approach. The financial support for the Palestinian Authority is the “carrot,” intended to build the institutions of a future Palestinian state and provide a moderate alternative to groups like Hamas. The proposed sanctions against Israel are the “stick,” designed to pressure it to cease actions—like settlement expansion and the Gaza war—that the EU believes are destroying the viability of that two-state solution.
This policy is not without its critics. Israel has often accused the EU of indirectly funding terrorism through its aid to the Palestinians, a charge the EU vehemently denies, pointing to its strict vetting procedures. On the other hand, some pro-Palestinian activists argue that the EU’s support for the PA has not been enough to protect Palestinians from the impacts of the occupation.
The current crisis puts this dual policy into sharp focus. The EU is simultaneously trying to penalize one party to the conflict while shoring up the administrative body it hopes will one day govern the other. It is a complex and challenging balancing act that lies at the heart of Europe’s Middle East strategy.
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