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This Working Paper is published by the CEPS Middle East and Euro-Med Project. The project addresses issues of policy and strategy of the European Union in relation to the Israeli-Palestinian conflict and the wider issues of EU relations with the countries of the Barcelona Process and the Arab world. Participants in the project include independent experts from the region and the European Union, as well as a core team at CEPS in Brussels led by Michael Emerson and Nathalie Tocci. Support for the project is gratefully acknowledged from: • Compagnia di San Paolo, Torino • Department for International Development (DFID), London. Unless otherwise indicated, the views expressed are attributable only to the author in a personal capacity and not to any institution with which he is associated