The master's thesis examines the issue of Palestine and analyses the European Community/European Union's political and economic activity related to the Israeli-Palestinian conflict. The EC/EU has played a vital role in establishing some of the important concepts that have become generally accepted in the international arena as a guideline for conflict resolution. However, the EC/EU has never been able to assert itself as an actor that would actually influence the conflict resolution method, which is why that role has always been taken up by the United States of America. The EC/EU has failed to achieve that due to differences in the Member States' foreign policies regarding this conflict and, consequently, due to an insufficiently firm policy towards the conflict. For these reasons, the EC/EU has never enforced its declared principles in practise or, despite its significant capabilities, has never pressured Israel into ending its violations of international law, which are thwarting the possibility of forming a sovereign and viable Palestinian state. The thwarting of possibilities for forming a Palestinian state has had a significant impact on the formation of radical Islamist tendencies in the Middle East, which will also lower the level of safety in the EU.