The widespread perception among Israeli decision-makers of the European Union’s irrelevance is a perplexing conundrum of Israeli foreign relations. While one would think that a continent-sized institution representing Israel’s largest export market would somehow have more clout, the already limited capacity of the EU to play a constructive role contracts at an alarming rate. This is bad for everyone, but hurts the Palestinians and Israelis most of all. Ironically, despite Europe’s economic and social woes, its loss of influence in this arena is largely self-inflicted.