The Resolution of the Arab-Israeli conflict is a fundamental interest of the EU. The EU’s objective is a two-state solution with an independent, democratic, viable and contiguous Palestinian state living side-by-side in peace and security with Israel and its other neighbours. The EU has been deeply concerned about developments on the ground, which threaten to make a two-state solution impossible. The only way to resolve the conflict is through an agreement that ends the occupation which began in 1967, that ends all claims and that fulfils the aspirations of both parties. A one state reality would not be compatible with these aspirations. A lasting solution must be achieved on the basis of the relevant UN Security Council Resolutions, the Madrid principles including land for peace, the Roadmap, agreements previously reached by the parties and of the Arab Peace Initiative. If an agreement to finally end the conflict was reached, the door would open to a deepened and enhanced cooperation among all the countries of the region.