HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 1 ADDED VALUE: Israel’s Strategic Worth to the European Union and its Member States January 2014

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 3 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES Contents Introduction 3 In Figures: EU-Israel Relations 5 The Security Dimension 6 Intelligence sharing 6 Sales of weapons and homeland-security systems 8 Joint training and NATO 8 UAV technology 10 The Economic Dimension 11 How Europe benefits from growing bilateral trade 11 Israel as a prime target for EU commerce 12 Energy 12 The Scientific and Technological Dimension 14 Galileo, European Space Agency, and CERN 14 Framework Programmes 14 Britain and Israel: High tech 15 Conclusions and Recommendations 16 Front Cover Image: ©iStock.com/daboost 1

Hear a soundbite from Douglas Murray on BBC Newshour. Get an overview of the debte over boycotting trade with Israel

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HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 5 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES settlements and the status of Jerusalem, as well as the Introduction proportionality of Israeli military campaigns in Gaza and Lebanon.4 The relationship between the European Union and According to Shlomo Avineri, the former head of the State of Israel is often said to be based on common both Israel’s Foreign Ministry and of European values. Israelis often describe their country as a vibrant Studies at Hebrew University: democracy that treasures the core Western values of Some Europeans have started looking at ties human rights and rule of law, and, in public with Israel through the lens of disagreement, pronouncements, European policymakers tend to rather than the broad areas of co-operation. agree.1 The weight of history – centuries of European Likewise, many Israelis today feel Europe is anti-Semitism, culminating in the Holocaust – is never anti-Israel, because they read in newspapers entirely absent from the discussion.2 about disagreement over settlement policy. Yet, the Israel of today is far more than a Western Most have no idea about the very sensitive the island surrounded by Middle Eastern dysfunction. security bilateral relations, [or] the scope of The diminutive Jewish state leads the world in economic relationship and of scientific and start-ups, patents, and rate of scientists per capita; it scholarly exchange.5 has more companies on the NASDAQ than any The range of those ties was underscored by the EU’s country outside of North America; it has the 2012 upgrade of relations with Israel in 60 specific third-highest rate of entrepreneurship (and the highest activities: from energy to agriculture, and from ng women and people over 55); and it is the amo policing to space exploration. The move, though, fell world’s sixth-largest producer of military technology, short of the full upgrade that Israel had sought, and and 17th-largest of Nobel laureates.3 which the EU had withheld after Jerusalem’s 2008-09 This report, then, seeks to go beyond questions of campaign against Hamas rocket fire from Gaza. 6 values and history, to assess the strategic benefit that the However, even if that symbolic gesture was refused, EU derives from its ties to Israel. It does so in three key the effect has been nearly the same: links between the arenas – security, economy, and science and technology EU and Israel are now more extensive than at any ean and time in either’s history – a fact not lost on the Jewish – bolstered by interviews with leading Europ state’s most committed detractors.7 Israeli opinion-shapers and policymakers. However, the report does not elide over disagreements Today, the European bloc’s future hangs in the ilateral relationship. In recent years, the two balance. Euroscepticism is on the rise across the in the b Continent; the Eurozone crisis is battering its sides have clashed over the question of West Bank members’ economies; and the Union’s role on the 1 For example: “The EU and Israel share the common values of democracy, respect for human rights and the rule of law and basic freedoms”, in 4 Costanza Musu, “The state of EU-Israel Relations: An appraisal from a “EU/Israel Action Plan,” Commission of the European Communities (2004), pean perspective,” 1957-2009: Israeli-European Cooperation – Stocktaking, Euro available at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri= Israeli European Policy Network (2009), available at: http://www.iepn.org/ COM:2004:0790:FIN:EN:PDF; see also: Barroso’s words, “Europe is also part images/stories/papers/israeli-european%20cooperation%20stocktaking.pdf; of you, of your values and of your culture”, in “S peech on the occasion of see also: Tsilla Hershco, “Israel – EU Security and Defense Relations – President Barroso’s honorary doctorate at the University of Haifa,” European Divergences and Convergences,” Diplomacy & Foreign Affairs, available at: ael-eu-security-and-defense- om/isr Commission, 10 July 2012, available at: http://europa.eu/rapid/press-release_ http://diplomacyandforeignaffairs.c SPEECH-12-543_en.htm?locale=en (accessed 23 December 2013); see also: relations-divergences-and-convergences/ (accessed 4 November 2013). Author interview with Francesca Traldi, secretary-general of the Magna Carta 5 Author interview, 20 November 2013. Foundation, 11 December 2013: “I am convinced Israel is part of the West; it 6 Phoebe Greenwood, “EU move to upgrade relations with Israel,” The Guardian, wa s in the past and present, and will be in the future.” 23 July 2012, available at: http://www.theguardian.com/world/2012/jul/ 2 ‘Nir Hasson, “European Union project aims to establish network of Holocaust 23/israel-eu?newsfeed=true, (accessed 14 December 2013). archives,” Haaretz, 8 November 2010, available at: http://www.haaretz.com/ rother in Arms,” Al print-edition/news/european-union-project-aims-to-establish-network-of- 7 See, for example: Bruno Jäntti, “The EU: Israel’s Faithful B holocaust-archives-1.323468; see also: Angelika Stricker, “Merkel tells Israeli Akhbar, 13 May 2013, available at: http://english.al-akhbar.com/node/15791; parliament of Holocaust shame,” Reuters, 18 Ma see also: Arjan El Fassed, “In bed with Israel: EU’s close relationship with Israel rch 2008, available at: supports abuse,” The Electronic Intifada, 11 March 2005, available at: http://www.reuters.com/article/2008/03/18/us-israel-germany-id http://electronicintifada.net/content/bed-israel-eus-close- USL1885127220080318 (both accessed 23 December 2013). relationship-israel-supports-abuse/5459; see also: Ben White, “EU-Israel: One 3 Aaron David Miller, “Is Israel Doomed?,” Foreign Policy, 7 November 2013, the other,” Al Jazeera, 8 August 2012, available at: hand whitewashes available at: http://www.foreignpolicy.com/articles/2013/11/07/ http://www.aljazeera.com/indepth/opinion/2012/08/20128719414439 is_israel_doomed?page=full (accessed 10 November 2013). 3945.html (all accessed 23 December 2013). 3

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 6 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES 89 – one meriting support only in light of Europe’s past world stage remains in question. Amid a small but growing campaign to cast Israel as a strategic liability crimes against Jews – this report asks a simple question: in which ways and to what extent do the EU’s 8 Kathleen R. McNamara, “The Eurocrisis and the Uncertain Future of connections to Israel serve the bloc’s strategic interests European Integration,” Council on Foreign Relations, September 2010, available at: hey make Europeans http://www.cfr.org/world/eurocrisis-uncertain-future-european-integration/ and those of its members? Do t p22933 (access ed 20 November 2013). safer, more prosperous, and/or more influential in the 9 Jose Ignacio Torreblanca and Mark Leonard, “The Continent-Wide Rise of world? Put in starker terms: would Europe be better or Euroscepticism,” European Council on Foreign Relations (2013), available at: http://ecfr.eu/page/-/ECFR79_EUROSCEPTICISM_BRIEF_AW.pdf worse off if Israel were to disappear? (accessed 20 November 2013). o_com er ez lid .com/s iStock © Tel Aviv, the hub of Israel’s booming start-up sector 4

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 7 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES In Figures: EU-Israel Relations €29.7 billion: Total bilateral trade in goods (2012) €17 billion: EU exports to Israel (2012) €12.7 billion: EU imports from Israel (2012) €4.3 billion: Trade balance in goods in EU’s favour (2012) €1.16 billion: Israeli military-related sales to EU members (2012) rtner) 35%of Israeli imports come from the EU (Israel’s leading import pa 27%of Israeli exports go to the EU (Israel’s second-leading export partner, after the US) €7.9 billion: Total bilateral trade in services (2012) €1.3 billion: Trade balance in service sector in EU’s favour €4.44 billion (£3.75 billion): UK-Israel trade (2012, up 34% from 2011) €5.3 billion: Germany-Israel trade (2012) €2.3 billion: France-Israel trade (2011) Average annual growth rate in EU-Israel trade (2008-12): 4.9%: EU exports 3.0%: EU imports Top EU-to-Israel exports: Machinery, transport equipment (38%); manufactured goods (21%); chemicals (17%) Top Israel-to-EU imports: Chemicals (37%); machinery, transport equipment (19%); manufactured goods (17%) 356: Israeli participants in European Cooperation in Science and Technology (COST) since 2000 (34% of all programmes) 289: Israeli participants in European Research Council projects: (11% of all projects) 1,406: Israeli participants in the EU Seventh Framework Programme for Research and Technological Development10 10 “European Union, Trade in goods with Israel,” European Commission (2013), available at: http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113402.pdf; see also: Nadav Shemer, “UK envoy: Trade boom proves no Israel boycott,” The Jerusalem Post, 29 February 2012, available at: http://www.jpost.com/Business/Business-News/UK-envoy-Trade-boom-proves-no-Israel-boycott (accessed 16 December 2013); see also: “Vom Silicon Valley ins Silicon Wadi” (“From Silicon Valley to Silicon Wadi”), State of Israel – Ministry of Economy, 21 June 2013, available at: http://itrade.gov.il/germany/vom-silicon-valley -ins-silicon-wadi-wirtschaftsminister-rosler-in-israel/; see also: “Hollande visits Israel amid stalled Iran nuclear talks,” France 24, 17 November 2013, available at: http://www.france24.com/en/ de-iran-israel-nuclear-netanyahu-palestinian-abbas-france/. 20131116-hollan 5

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 8 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES The Security ‘Arab Spring’ is another.14 Nowhere is this now more ael’s neighbour, Syria, which, since evident than in Isr the outbreak of civil war in 2011, has become ground Dimension zero for violent extremists from around the world. The extremists’ ranks comprise at least 1,000 hard-core Islamists from Europe, including an estimated 300 Overview from the UK alone – extremists whom British For the past seven decades, most EU states have been intelligence fear will try to launch terror attacks upon their return to Britain.15 16 blessedly free of the political conflicts that brought the carnage of the World Wars. More recently, with the “The Israelis keep a close eye on what’s happening in Cold War over; the US funding three-quarters of Syria, including all the European fighters there,” said NATO spending; and their own economies in crisis, Daniel Schwammenthal, director of the EU states have let their military budgets shrink further Brussels-based Transatlantic Institute and former still. Today, only the UK and Greece meet NATO’s editorial editor at the Wall Street Journal Europe. “It’s tes contributing 2% of their one area in which there are, no doubt, deep shared guideline of member sta GDP to defence.11 interests and concerns.”17 Israel, by contrast, has been in conflict since the day Intelligence sharing of its birth, and has accumulated vast operational and counterterrorism experience, which the EU Israeli intelligence is, by necessity, world class, boasting lacks. Through intelligence sharing; arms sales; and capabilities that former US Air Force intelligence joint training exercises, EU members benefit from chief Maj. Gen. George Keegan likened to that of Israeli expertise, making their borders more secure; “five CIAs.”18 Less well-documented is the scope of their military operations more effective; and their Israeli-European intelligence sharing – links that were itiz redoubled after the major terror attacks that hit c ens safer. “Defence budgets all over Europe are dropping, and Europe over the last decade. military R&D budgets as well,” said Brig. Gen. (ret.) The EU – with its porous interstate borders and Uzi Eilam, who was formerly the Europe director and often-inadequate immigrant screening – has become Head of Science and Research and Development with an attractive target for terrorists. One-hundred-and- the Israeli Defence Ministry, and is now with the ninety-one people were killed in the 2004 Madrid Institute for National Security Studies (INSS) in Tel train bombings, and 52 more the following year (in Aviv. “Yet, if the threats Europe is facing – particularly attacks on London’s public transport). The thwarted are steeply on the rise, it needs, 2006 “Liquid Bomb Plot” could have dwarfed even in the war on terror – not only technology, but counterterrorism knowhow; the 9/11 attacks, with as many as 10,000 people killed, that’s where Israeli companies come in,” he said.12 had its perpetrators succeeded in exploding 10 planes Cyberwarfare, the Iranian nuclear threat, and the rising use of the Mediterranean Basin as a launch pad 14 Tsilla Hershco, “Israel – EU Security and Defence Relations – Divergences and Convergences,” Diplomacy & Foreign Affairs, available at: for terrorism in Europe are all areas of mutual http://diplomacyandforeignaffairs.com/israel-eu-security-and-defense- relations-divergen 13 ces-and-convergences/ (accessed 4 November 2013). concern; geopolitical instability wrought by the 15 Siobhan Gorman, Cassell Bryan-Low, and Maria Abi-Habib, “Jihadists Returning Home to Europe From Syria Pose New Terror Threat,” The Wall Street Journal, 4 December 2013, available at: 11 Steven Erlanger, “Shrinking Europe Military Spending Stirs Concern,” The http://online.wsj.com/news/articles/SB10001424052702303722104 New York Times, 22 April 2013, available at: http://www.nytimes.com/2013/ 579238542737904868 (accessed 8 December 2013). 04/23/world/europe/europes-shrinking-military-spending-under- 16 Con Coughlin, “The Syrian civil war is breeding a new gener ation of terrorist,” scrutiny.html?_r=0; see also: John Vandiver, “NATO chief urges Europe e Telegraph, 3 December 2013, available at: http://www.telegraph.co.uk/ Th to spend more on defense,” Stars and Stripes, 19 September 2013, available at: news/worldnews/middleeast/syria/10491523/The-Syrian-civil-war-is- http://www.stripes.com/news/europe/nato-chief-urges-europe-to-spend- breeding-a-new-generation-of-terrorist.html (accessed 8 December 2013). more-on-defence-1.242159 (both accessed 19 November 2013). 17 Author interview, 6 December 2013. 12 Author ew, 19 November 2013. intervi 18 Cited in Michael Oren, “The Ultimate Ally,” Foreign Policy, 25 April 2011, 13 Author interviews with Oded Eran, Israel’s former ambassador to the EU, and available at: http://www.foreignpolicy.com/articles/2011/04 /25/ Ben-Gurion University’s Zaki Shalom, security expert, 19 November 2013. the_ultimate_ally (accessed 8 November 2013). 6

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 9 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES after take-off from Britain.19 Additionally, in 2009, In early 2013, the EU voted to finally blacklist the Umar Farouk Abdulmutallab (the ‘Underwear organisation,26 after it sent a suicide bomber to the Bomber’) nearly took down a Detroit-bound jet that resort town of Burgas, Bulgaria,27 killing a Bulgarian was flying from Amsterdam on Christmas Day, an bus driver and five Israeli tourists and injuring 30 20 ore. That same year, Cyprus convicted a Hezbollah attack that would have killed hundreds. m operative of planning a similar strike on its soil.28 The With their publics reminded of the ever-present threat blacklist, regrettably, was not of Hezbollah itself, but of terrorism, EU governments have dramatically of its so-called ‘armed wing’, despite experts’ upgraded security collaboration with Israel – the US assessments that no such division within the group earch Service, for example, notes a Congressional Res exists.29 Still, Jerusalem reacted to the designation by significant increase in Germany’s intelligence promising vital intelligence to help the EU enforce the co-operation with Jerusalem, since 9/11.21 Likewise, d Hezbollah since Britain regularly receives vital intelligence from Israel, move. Israel, after all, has monitore on Iran and other chief state sponsors of terrorism. its inception in south Lebanon, three decades ago, and has deeper and more actionable intelligence on it than Con Coughlin, The Telegraph’s defence correspondent, any other country in the world.30 has written that Britain is so reliant on Israeli According to Yossi Kuperwasser (director of Israel’s intelligence that it simply “cannot afford a diplomatic Ministry of International Relations and Strategic rift”,22 and a former top-level Mossad agent observed (immodestly; but, perhaps not inaccurately) that, in Affairs, and a veteran of the country’s intelligence the intelligence field, Israel has “more to offer than establishment), for several years, Israeli and European receive” from the UK.23 intelligence communities have been meeting every few months in Europe, for high-level briefings on One of the foremost dangers to Europe’s security today European security. “You don’t even have to pay us,” is Hezbollah. The Iran-funded Lebanese terror outfit he joked. “We consider Europe’s security to be part of has targeted Europeans for decades: from the 1983 our security; when Europe is insecure, so is Israel – bombing of French barracks in Beirut, killing 55; to a and vice versa.” 31 Mark Heller, a veteran security ng of an Athens-to-Rome jet; to more than expert at Tel Aviv University, added, “Israel may not 1985 hijacki a dozen bombings in Paris, in 1985 and 1986, that killed have much to provide the EU on the IRA or Corsican 24 t do 13 people. Other attacks – some successful, others not separatists; but, i es know quite a bit about radical – targeted Germany, Italy, and Denmark.25 Islamists.”32 19 Duncan Gardham, “Airline terror trial: The bomb plot to kill 10,000 people,” 26 “EU ministers agree to blacklist Hezbollah’s armed wing,” BBC News, 22 July The Telegraph, 7 September 2009, available at: http://www.telegraph.co.uk/ 2013, available at: http://www.bbc.co.uk/news/world-middle-east-23397003 news/uknews/terrorism-in-the-uk/6153243/Airline-terror-trial-The-bomb- (accessed 19 November 2013). plot-to-kill-10000-people.html (accessed 19 November 2013). 27 “Hezbollah suspected in Bulgaria bus bombing,” Al Jazeera, 5 February 2013, 20 “Underwear bomber Abdulmutallab sentenced to life,” BBC News, av lable at: http://www.aljazeera.com/news/europe/2013/02/ ai 16 Feb ruary 2012, available at: http://www.bbc.co.uk/news/world-us- 20132515350158754.html (accessed 8 November 2013). canada-17065130 (accessed 13 December 2013). 28 Michael Birnbaum, “Cyprus convicts Hezbollah operative,” 21 Paul Belkin, “Germany’s Relations with Israel: Background and Implications The Washington Post, 22 March 2013, available at: for German Middle East Policy,” Congressional Research Service (2007), http://articles.washingtonpost.com/2013-03-21/world/37904215_1_ available at: http://www.fas.org/sgp/crs/row/RL33808.pdf; see also: Shlomo hezbollah-shiite-militant-group-israeli-tourists (accessed 8 November 2013). Shpiro, “Intelligence Services and Foreign Policy: German-Israeli Intellige nce 29 Matthew Levitt, “On a Military Wing and a Pra an yer,” Foreign Policy, d Military Cooperation,” German Politics, Vol. 11, No. 1, April 2002. 12 February 2013, available at: http://www.foreignpolicy.com/ 22 Con Coughlin, “Britain cannot afford a diplomatic rift with Israel,” articles/2013/02/12/on_military_wing_prayer_hezbollah_europe_bulgaria The Telegraph, 3 December 2012, available at: http://blogs.telegraph.co.uk/ (accessed 2 December 2013). news/concoughlin/100192487/britain-cannot-afford-a-diplomatic- 30 Herb Keinon, “Israel to start supplying EU with intel on Hezbollah,” rift-with-israel/ (accessed 5 November 2013). The Jerusalem Post, 24 July 2013, available at: http://www.jpost.com/ 23 Yaakov Lappin, “Politically motivated move, blow to intelligence-sharing Diplomacy-and-Politics/After-terrorist-designation-Israel-to-begin- ,” giving-intel-on- The Jerusalem Post, 24 March 2010, available at: http://www.jpost.com/ Hezbollah-to-EU-enforcement-officials-320878 Israel/Politically-motivated-move-blow-to-intelligence-sharing (accessed 4 November 2013). (accessed 6 November 2013). 31 Author interview, 25 November 2013. 24 Matthew Levitt, “Matthew Levitt: Hezbollah’s European enablers,” 32 Author interview, 19 November 2013. Heller added, “Israel has intensive National Post, 11 March, 2013, available at: military relationships with EU states, especially its leading military powers: http://fullcomment.nationalpost.com/2013/03/11/matthew-levitt- Britain, France, Germany, and Italy. There are high-level strategic dialogues, hezbollahs-european-enablers/ (accessed 2 December 2013). which involve annual meetings where analysis is shared and exch anged. 25 See: Mat thew Levitt, “Hezbollah’s European Debut,” There is also, of course, intelligence exchange, mostly to do with in Hezbollah: The Global Footprint of Lebanon’s Party of God counterterrorism. These aren’t in the public domain; but, they deal mainly (Washington: Georgetown, 2013), pp. 49-74. with information and methodology.” 7

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 10 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES Sales of weapons and Joint training and NATO homeland-security systems Israel conducts joint training exercises with European Israel’s arms exports jumped 74%, in 2013,33 making militaries nearly every year. In November and the country of under 8 million people the world’s December 2013, it hosted the German; Italian; Polish; sixth-largest arms exporter – after military-technology and American air forces, near Eilat, for its latest heavyweights the US, Russia, France, the UK, and international exercise. Codenamed ‘Blue Flag’, the Germany. In 2012, Israel exported $1.6 billion (€1.16 drill involved hundreds of aircraft and a thousand billion), in military-related technology, to EU states, a crew members simulating both asymmetric figure surpassed only by Israel’s arms sales to the US (counterinsurgency) operations and traditional and India.34 air-to-air combat.39 Other recent drills have included A representative example is the ‘Spike’ anti-tank special-forces training with the Czech Republic,40 as portable missile system, designed by the defence firm, well as long-distance air-force bombing runs with Rafael, and sold – in consortium with two German Greece; Italy; the Netherlands; and Germany.41 42 counterparts – as ‘EuroSpike’. The UK; Spain; The bulk of EU-Israel joint training, however, is Belgium; Italy; and the Netherlands have all acquired conducted within the NATO framework. the system in large numbers, and, for years, it has seen All but two of NATO’s 28 member states are situated extensive use in coalition operations in Afghanistan.35 in Europe, and, naturally, a significant portion of the Israeli equipment also enhances Europeans’ personal EU’s military co-operation with Israel occurs under security. Last November’s Milipol conference in Paris – NATO auspices. The NATO-Israel relationship has the marquee convention for the homeland-security expanded significantly over the last decade. In 2005, industry – featured dozens of Israeli firms offering Jaap de Hoop Scheffer became the first NATO chief everything from cybersecurity tools, to emergency to visit Israel, and, the following year, Israel management, to aviation and transportation security.36 participated in ‘Operation Active Endeavour’ – NATO’s signature counterterrorism and counter- Few Europeans are aware that Israeli technology trafficking drill in the Mediterranean.43 44 safeguards such iconic symbols as Buckingham Palace, Heathrow Airport, the Eiffel Tower, and the Shortly after, the two sides approved a long-term plan Vatican.37 38 for co-operation in 27 areas, making Israel the first non-European country to reach such an agreement. 33 “‘Peak Defence’ on Horizon as US, UK & Europe Erodes Competitive Edge,” That co-operation was upgraded further, in 2008, IHS, 24 June 2013, available at: http://press.ihs.com/press-release/ allowing for “an exchange of intelligence information country-industry-forecasting/peak-defence-horizon-us-uk-europe-erodes- competitive-edge (accessed 9 November 2013). 34 Gili Cohen, “Overtaking China and Italy: Israel ranks as the world’s sixth 39 “Five Air Forces to Participate in Israel’s ‘Blue Flag’ Air Combat Exercise,” largest arms exporter in 2012,” Haaretz, 25 June 2013, available at: Defense Update, 4 November 2013, available at: http://defense-update.com/ http://www.haaretz.com/news/diplomacy-defense/.premium-1.531956; 20131104_five-air-forces-participate-israels-blue-flag-air-combat-exercise.html see also: Alon Ben David, “Israel Among Leading s Exporters In 2012,” Arm (accessed 19 November Aviation Week, 5 August 2013, available at: http://www.aviationweek.com/ 2013). Article.aspx?id=/article-xml/AW_08_05_2013_p76-600058.xml; see also: 40 “Czech Republic discusses joint military training with Israel,” “The Arms Trade between EU Member States and Israel – Briefing Paper,” Azeri Press Agency, 17 May 2013, available at: http://en.apa.az/news/193008 Quaker Council for European Affairs (2009), available at: http://www.qcea.org/ (accessed 5 November 2013). 2010/12/bp-eu-israel-arms-trade/ (all accessed 17 December 2013). 41 Tsilla Hershco, “Israel – EU Security and Defence Relations – Divergences 35 “EuroSpike GmbH,” Eu and Convergences,” Diplomacy & Foreign Affairs, available at: roSpike, available at: http://www.eurospike.com/index.html (accessed 1 November 2013). http://diplomacyandforeignaffairs.com/israel-eu-security-and-defense- relations-divergences- 36 “Israel at Milipol Paris 2013,” Israel Export Institute, 19-22 November 2013, and-convergences/ (accessed 4 November 2013). available at: http://www.export.gov.il/files/publications/milipol2013-e-book/ 42 Yoav Zitun, “IAF holds distant-strike exercise,” Ynet, 11 February 2011, milipol%202013%20ppt.html (accessed 3 November 2013). available at: http://www.ynetnews.com/articles/0,7340,L-4142862,00.html 37 “Israel: Homeland Security Industry,” The Israel Export & International (accessed 6 November 2013). Cooperation Institute (2012), ava e at: http://www.export.gov.il/ 43 “NATO/Israel Cooperation in the framework of the Mediterranean ilabl uploadfiles/11_2012/cyber%20security_pages.pdf Dialogue,” NATO, 16 October 2006, available at: http://www.nato.int/docu/ (accessed 2 November 2013). pr/2006/p06-123e.htm; see also: Shlomo Ben-Ami srael and NATO – , “I 38 See: Itai Smuskowitz, “Israeli company to secure Vatican,” Ynet, Between Membership and Partnership,” Project Syndicate, 5 January 2010, 20 November 2008, available at: http://www.ynetnews.com/articles/ available at: http://www.project-syndicate.org/commentary/ 0,7340,L-3626206,00.html; see also: Andrea Tornielli, “The Vatican israel-and-nato---between-membership-and-partnership#cv invests in cutting edge technology and regular bug-clearing operations,” HWAr69BkIP3HVJ.99 (both accessed 13 November 2013). Vatican Insider, 31 Oc 44 Rick Rozoff, “Israel: Global NATO’s 29th Member,” Centre for Research on tober 2013, available at: http://vaticaninsider.la stampa.it/en/the-vatican/detail/articolo/vaticano-datagate-29162/ Globalization, 17 January 2010, available at: http://www.globalresearch .ca/ (both accessed 8 November 2013). israel-global-nato-s-29th-member (accessed 13 November 2013). 8

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 11 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES and security expertise on different subjects, an increase (or EUCOM, the US military command which in the number of joint Israel-NATO military exercises includes Europe and Israel) installed an X-band and further cooperation in the fight against nuclear missile-shield radar base in Israel’s Negev desert. The proliferation.”45 r one in Turkey, is part of the base, along with a simila Israel’s experience in dealing with terrorism and ‘Aegis’ US-NATO missile-defence system, designed to guerrilla groups has been a boon to NATO members. protect Europe from ballistic missiles of the type that Iran is believed to be developing.51 In 2009, NATO’s Science for Peace and Security programme sponsored a three-day course in Haifa, for The same year, details emerged of secret rocedures in mass-casualty German-Israeli co-operation on a project for detecting dealing with emergency p situations. 46 The same year, Adm. Giampaolo Di incoming nuclear-tipped missiles. Codenamed ‘Project Paola – then-chairman of NATO’s Military Bluebird’, it is designed to detect nuclear-tipped oy missiles that could Committee – visited Israel, to study IDF tactics to missiles among a cluster of dec apply to NATO operations in Afghanistan. Di Paola be launched against Europe in the event of nuclear was particularly interested in Israeli specialised armour war. The project is likely just the tip of the iceberg of against Improvised Explosive Devices (IEDs), as well bilateral anti-nuclear efforts, most of which remain as intelligence gathering and tactics for fighting terror highly classified.52 reas.47 in civilian-populated a In addition, for the last decade, Israel and the US have This visit came just weeks after the issuance of the staged large biennial missile-defence drills, nicknamed infamous Goldstone Report – which alleged that Israel ‘Juniper Cobra’. The 2012 iteration – by far the d – was joined by had committed war crimes by deliberately targeting largest-ever US-Israeli drill of any kin civilians in Gaza (though Goldstone himself later Germany and the United Kingdom, 53 and top disavowed that contention). 48 49 The contrast was US-military officers overseeing the operation confirmed striking: within weeks of the European Parliament that insights gleaned from it would be applied to endorsing the report, the European chair of NATO’s strengthening the missile shield for Europe.54 the third time military committee was visiting Israel, for This tight co-operation has led a number of high-level in four years,50 to study ethical methods for dealing European decision-makers to call for Israel to be with terror insurgencies without causing undue harm granted full NATO membership. Spain’s former to civilians. t he is prime minister, José María Aznar, has said tha Israel also plays an integral strategic role in Europe’s “fully convinced” that Israel ought to be included in nuclear defences. In 2008, US European Command the alliance, a move that would help thwart Iran’s nuclear-weapons drive and stem the tide of radical 45 Barak Ravid, “NATO okays pact to boost security, political ties with Israel,” Islam: “If Iran sees and feels that Israel is an integral Haaretz, 2 December 2008, available at: http://www.haaretz.com/ part of the West, I think our deterrence posture will news/nato-okays-pact-to-boost-security-political-ties-with-israel-1.258681 (accessed 13 November 2013). 46 “NATO helps prepare emergency response professionals for mass 51 Jonathan Masters and Greg Bruno, “What i casualty situations,” NATO, 16-18 November 2009, available at: s the ballistic missile threat from http://www.nato.int/cps/en/natolive/news_59390.htm?mode=news Iran?”, in “U.S. Ballistic Missile Defense,” Council on Foreign Relations, 1 May (accessed 13 November 2013). 2013, available at: http://www.cfr.org/missile-defense/us-ballistic- 47 Yaakov Katz, “NATO chief comes to study IDF tactics,” missile-defense/p30607#p6; see also: “Aegis Ballistic Missile Defense,” Missile The Jerusalem Post Defense Agency – U.S. Department of Defense, available at: http://www.mda.mil/ , 20 Nove mber 2009, available at: system/aegis_bmd.html (both accessed 18 November 2013). http://www.jpost.com/Israel/NATO-chief-comes-to-study-IDF-tactics kov Lappin, “Israel, Germany develop nuclear warning system,” (accessed 13 November 2013). 52 Yaa The Jerusalem Post, 17 November 2008, available at: http://www.jpost.com/ 48 “European Parliament backs Goldstone report,” International/Israel-Germany-develop-nuclear-warning-system The Associated Press, 3 October 2010, available at: (accessed 19 November 2013). http://www.ynetnews.com/articles/0,7340,L-3860934,00.html 53 Tony Capaccio, “U.S.-Israeli Military Exercise Sending Message to Iran,” (accessed 13 November 2013). Bloomberg Businessweek, 15 October 2012, available at: 49 Ethan Bronner and Isabel Kershner, “Head of U.N. Panel Regrets Saying -dot-israeli- http://www.businessweek.com/news/2012-10-15/u-dot-s Israel Intentionally Killed Gazans,” The New York Times, 2 April 2011, available military-exercise-sending-message-to-iran (accessed 13 November 2013). at: http://www.nytimes.com/2011/04/03/world/middleeast/03goldstone.html 54 Dan Williams, “U.S. sees Israel drill helping Europe missile shield,” Reuters, 22 (accessed 20 November 2013). October 2009, available at: http://www.reuters.com/article/2009/10/22/ 50 Yaakov Katz, “NATO chief comes to study IDF tactics,” us-israel-usa-iran-idUSTRE59L3GC20091022; see also: Michael Barajas, The Jerusalem Post, 20 November 2009, available at: “US-Israel drill may shape European missile shield,” The Associated Press, 27 http://www.jpost.com/Israel/NATO-chief-comes-to-study-IDF-tactics able at: http://seattletimes.com/html/nationworld/ October 2009, avail (accessed 13 November 2013). 2010146317_apmlisraelmissileexercise.html (both accessed 13 November 2013). 9

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 12 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES be strengthened […] The West cannot fight this Israeli UAV that has saved the lives of European radical tide without Israel.”55 troops,60 contributing extensively to French military operations in Afghanistan;61 Libya;62 and Mali.63 UAV technology Another is the ‘Hermes 450’, developed by Israel’s In the 1970s, Israel became the first country ever to Elbit Systems 64 which has logged at least 70,000 hours produce Unmanned Aerial Vehicles (UAVs); today, it of surveillance (the equivalent of eight years’ non-stop is their leading exporter worldwide, accounting for flying) in Afghanistan, for the British Army.65 The UK 40% of all sales globally.56 57 UAVs are now a critical Ministry of Defence and its ground commanders in tool of modern warfare; counterterrorism; and law Afghanistan have described the aircraft as “vital” for enforcement, and experts believe that demand for protecting British troops in the country’s volatile them will quadruple over the next decade.58 Helmand Province.66 Of all Israeli UAVs exported, half go to Europe – chiefly Britain, Germany, Poland, the Netherlands, and Spain.59 Israel Aerospace Industries’ ‘Heron’ (known 60 Tsilla Hershco, “French-Israeli Security Cooperation in the Twenty-First Century (Hebrew),” Begin-Sadat Center for Strategic Studies, 1 July 2013, in France as ‘Harfang’) is but one example of an available at: http://besacenter.org/mideast-security-and-policy-studies/ french-israeli-security-cooperation-in-the-twenty-first-century-hebrew/. 61 Tech. Sgt. John Jung, “French unmanned aircraft protect Bagram Airmen, coalition forces” U.S. Air Force, 13 July 2009, available at: h //archive.is/ 55 José María Aznar, “Israel and NATO,” Congress Monthly (2007), ttp: available at: http://www.ajcongress.org/site/DocServer/Jose_Maria_ 20120720012659/http://www.af.mil/news/story.asp?id=123158417 Aznar.pdf?docID=3041. (accessed 9 November 2013). 56 “Israel – an unmanned air systems (UAS) super power,” Defense Update, 62 Zach Rosenberg, “France deploys Harfang over Libya,” Flightglobal, 3 May 2013, avail e at: http://defense-update.com/20130503_israel-as- 25 August 2011, available at: http://www.flightglobal.com/news/articles/ abl unmanned-air-systems-super-power.html (accessed 2 November 2013). france-deploys-harfang-over-libya-361301/ (accessed 9 November 2013). 57 “‘Peak Defence’ on Horizon as US, UK & Europe Erodes Competitive Edge,” 63 “French Harfang UAV logs 2,000 flight hours in Mali,” Shephard Media, 5 September 201 lable at: http://www.shephardmedia.com/ IHS, 24 June 2013, available at: http://press.ihs.com/press-release/ 3, avai country-industry-forecasting/peak-defence-horizon-us-uk-europe- news/uv-online/french-air-force-harfang-logs-2000-flight-hours-ma/ erodes-competitive-edge (accessed 9 November 2013). (accessed 9 November 2013). 58 Charles Levinson, “Israe bots Remake Battlefield,” The Wall Street Journal, 64 Lewis Page, “UK MoD reveals Watchkeeper spy-drone numbers,” li Ro 13 January 2010, available at: http://online.wsj.com/news/articles/ The Register, 15 June 2007, available at: http://www.theregister.co.uk/2007/ SB126325146524725387 (accessed 8 November 2013). 06/15/watchkeeper_numbers_revealed/ (accessed 4 November 2013). 65 “Hermes 450 reaches 70,000 hours in Afghanistan,” UK Minist 59 Gili Cohen, “Israel is world’s largest exporter of drones, study finds,” ry of Defence, 19 Haaretz, 19 May 2013, available at: http://www.haaretz.com/news/ September 2013, available at: https://www.gov.uk/government/news/ diplomacy-defense/israel-is-world-s-largest-exporter-of-drones-study- hermes-450-reaches-70000-hours-in-afghanistan (accessed 9 November 2013). finds.premium-1.524771 66 Ibid. (accessed 8 November 2013). terLu s .com/Ma iStock © The Vatican – a European icon secured by Israeli technology 10

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 13 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES of trade with Israel, amounting to €4.3 billion in The Economic 2011. Some 84% of EU exports to the Jewish state are in its crucial manufacturing sector – half of them in Dimension the subset of machinery and transport equipment.72 Over the past year, a particular spike was seen in Israel’s Overview trade with Spain, and even more so with the UK. Israel is Britain’s second-largest trading partner in the Middle Europeans and Israelis alike tend to be unaware of East (after Saudi Arabia), and Britain is Israel’s the sheer scale of EU-Israel commercial ties. “There second-largest export market (after the US). 73 The is no country outside the European continent that has increase in trade with both European countries has this type of relationship that Israel has with the been prompted primarily by the chemical and ph European Union”, according to the EU’s armaceutical industries: the Israel Chemicals ex-foreign-policy chief, Javier Solana, while Brussels’ conglomerate, for example, owns potash mines in Spain ambassador-designate to Israel affirmed that “the EU and the UK, and exports agricultural chemicals has developed its relations with Israel more than any Continent-wide.74In the pharmaceutical arena, Teva– other non-European country in the world”.67 the Israeli firm that is the world’s leading maker of generic drugs – owns production facilities in Spain; the Furthermore, though the EU dwarfs Israel in UK; Germany; Italy; Ireland; and a handful of Eastern population and combined GDP, the bilateral European countries. 75 Israel’s outsized presence in relationship is neither – as those wishing to delegitimize Europe’s pharmaceutical market led to the 2010 Israel contend – lopsided nor based on charity. Rather, Agreement on Conformity Assessment and Acceptance EU-Israel ties are based on a 1994 European Council of Industrial Products (AACA), which co-ordinates decision that Israel’s high level of development means European and Israeli pharmaceutical standards (to that it should enjoy “special status”, on the basis of make for easier sale and manufacture on both sides).76 reciprocity and common interest, with the EU.68 A closer look at that economic partnership demonstrates In October 2013, European Commissioner for the strategic advantage which it yields to Europe. Industry and Entrepreneurship Antonio Tajani visited Israel, accompanied by 65 industry associations and c How Europe benefits from ompanies. A European Commission memorandum growing bilateral trade released at the visit’s end affirmed that the trip’s purpose had been to link European entrepreneurs The EU is Israel’s largest source of imports (35% of with Israel, “one of the most competitive economies its total) and second-largest destination for exports in the world”, in order to enhance European (27%), barely edged out by the United States.69 Israel, industry’s global reach.77 for its part, is a leading EU trading partner in the strategically pivotal Eastern Mediterranean. All told, opm http://www.export.gov.il/uploadfiles/09_2013/devel entsandtrendsin Israel’s trade links with the EU amounted to €29.7 israeliexport_summaryoffirsthalf2013.pdf (accessed 4 November 2013). billion in 2012, over 50% higher than its total with 72 “European Union, Trade in goods with Israel,” European Commission (2013), available at: America.70 71 The EU also enjoys a positive balance http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113402.pdf. 73 Lord Green, “Seeing for myself what has made Israel the genuine Start-Up Nation,” The JC.com, 15 March 2013, available at: http://www.thejc.com/ d-debate/analysis/103387/seeing-myself-what-has-made- 67 Lars Faaborg-Andersen, “Delegitimizing Europe?,” The Jerusalem Post, 13 comment-an israel-genuine-start-up-nation-0 (accessed 17 December 2013). November 2013, available at: http://www.jpost.com/Opinion/Op-Ed- 74 “Israel Chemicals Ltd,” Bloomberg Businessweek, available at: ntributors/Delegitimizing-Europe-331654 (accessed 18 November 2013). Co http://investing.businessweek.com/research/stocks/snapshot/snapshot_ 68 “ENP Progress Report – Israel,” EUR-Lex, 4 December 2006, available at: article.asp?ticker=ICL:IT (accessed 11 December 2013). http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SEC:2006: 75 “Trade,” Delegation of the European Union to Israel, available at: 1507:FIN:EN:HTML (accessed 4 November 2013). http://eeas.europa.eu/delegations/israel/eu_israel/trade_relation/ 69 “European Union, Trade in goods with Israel,” European Commission index_en.htm (accessed 5 November 2013). (2013), available at: http://trade.ec.europa.eu/doclib/docs/2006/ 76 “European Parliament approves EU-Israel agreement to simplify trade,” 113402.pdf, p. 9. september/tradoc_ Delegation of the European Union to Israel, 25 October 2012, available 70 “Countries and regions – Israel,” European Commission, 3 May 2013, available at: http://eeas.europa.eu/delegations/israel/press_corner/ at: http://ec.europa.eu/trade/policy/countries-and-regions/countries/israel/ all_news/news/2012/20121025_en.htm (accessed 23 December 2013). (accessed 29 October 2013). 77 “Building on long-standing ties, EU and Israel explore new oppo rtun ities for 71 “Developments and Trends in Israeli Exports: Summary of First Half 2013,” growth and innovation,” Europa, 21 October 2013, available at: http://europa.eu/ The Israel Export & International Cooperation Institute (2013), available at: rapid/press-release_MEMO-13-912_en.htm (accessed 29 October 2013). 11

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 14 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES Israel as a prime target Gulf states.838485 The Tamar offshore gas field is the for EU commerce largest private infrastructure project in the country’s history,86 generating 300 million cubic feet of gas a Israel’s economy is not only one of the world’s most day, but significantly smaller than the still-untapped dynamic, but has weathered the global economic crisis Leviathan field. 87 Indeed, Russia’s state-run giant, far better than most other Western economies. New Gazprom, has already signed an initial agreement to York’s MSCI index ranked Israel 3rd, out of 24 export gas from Tamar, and Western markets must act developed countries, in terms of projected growth.78 Unsurprisingly, European investors have taken notice. fast to keep Moscow from making the Eastern Med 88 European foreign direct investment in Israel reached iterranean its private filling station. €7.5 billion in 2011, up nearly half a billion euros Natural gas is fast surpassing coal as the world’s from the year before, and the European Commission leading source of electricity production, 89 and a places Israel sixth worldwide – in terms of protecting proposed underwater electric cable (the world’s investors.79 longest) could soon link Israel to the EU, through Cyprus and – potentially – Greece.90 91 As Solomon In 2010, Israel was included in the latest round of new Passy, Bulgaria’s former foreign minister, said, “The members to the Organisation for Economic recent agreements between Israel and Cyprus and Co-operation and Development (OECD). Today, it is e’s no reason Israel can’t be better the only country in the Middle East and North Africa Greece show ther admitted to that grouping of advanced developed integrated in the EU in other fields. Nowadays, energy economies (which began its life as the Organisation policy is key to foreign policy; you can’t have one for European Economic Co-operation). 80 Visiting without the other.” 92 Schwammenthal, the Israel in December 2013, OECD secretary-general Brussels-based analyst, said that Greek leaders have Angel Gurría remarked: begun to realise the tremendous strategic advantage, across the Mediterranean, provided by the Jewish Israel’s growth rates are the envy of much of the rest of the OECD. Unemployment is at record lows. Inflation is under control. And [the 83 Joshua Hammer, “Israel: IEI’s Land of Oil and Money,” Fast Company, 8 August 2011, available at: http://www.fastcompany.com/1769210/ country’s] high-tech sector continues to attract israel-ieis-land-oil-and-money (accessed 8 November 2013). 84 “Israel emerges as admiration worldwide. All the building blocks energy power,” Financial Times, 6 November 2013, available at: http://video.ft.com/2808621410001/Israel-emerges-as- of a strong economy are present and accounted energy-power/Companies (accessed 6 November 2013). 85 John Reed, “Israel set to become major gas exporter,” Financial Times, for, but its [sic] gas production that could be the 6 November 2013, available at: http://www.ft.com/intl/cms/s/0/82e01bda- real game-changer.81 4518-11e3-b98b-00144feabdc0.html?siteedition=intl#axzz2jr5Zp7yU (accessed 6 November 2013). 86 R oby Nathanson and Ro’ee Levy (eds), Natural Gas in the Eastern Energy Mediterranean: Casus Belli or Chance for Regional Cooperation? (Tel Aviv: Friedrich-Ebert-Stiftung and the Institute for National Security Studies, 2012), p. 52. Israel has discovered large natural-gas fields, in recent 87 Karl Vick, “Tapping the Promised Land: Can Israel Be an Energy Giant?,” years, which could have enormous consequences for a Time, 30 April 2013, available at: http://world.time.com/2013/04/30/ can-israel-become-as-oil-rich-as-saudi- abia/ (accessed 7 November 2013). ar Europe eager to wean itself off energy from unreliable, 88 See: Keith Johnson, “Putin’s Mediterranean Move,” Foreign Policy, 27 authoritarian regimes like Russia (from which it December 2013, available at: http://www.foreignpolicy.com/articles/2013/ 12/27/putin_s_mediterranean_move#sthash.NGNc6z8M.nJyhlJVe.dpbs; see receives a third of its gas and oil) 82 and the Persian also: Jonathan Ferziger, “Israel Gas Riddle Has Woodside, Gazprom Hanging: Israel Markets,” Bloomberg Businessweek, 30 December 2013, available at: http://www nessweek.com/news/2013-12-29/israel-gas-riddle-has- .busi woodside-gazprom-hanging-israel-markets (both accessed 8 January 2014). 78 “Trading with Israel,” UK Israel Business, available at: 89 “Electricity Generation,” U.S. Energy Information Administration, 5 December http://www.ukisraelbusiness.co.uk/?page_id=104 (accessed 29 October 2013). 2012, available at: http://www.eia.gov/forecasts/aeo/er/early_elecgen.cfm 79 Ibid. (accessed 20 November 2013). 80 “Israel,” OECD, available at: http://www.oecd.org/israel 90 Michele Kambas, “Cyprus group plans Greece-Israel electricity link,” Reuters, (accessed 16 December 2013). 23 January 2012 lable at: http://uk.reuters.com/article/2012/01/23/ , avai 81 “Launch of OECD’s 2013 Economic Survey of Israel,” OECD, 8 December electricity-mediterranean-cable-idAFL5E8CN25B20120123 2013, available at: http://www.oecd.org/about/secretary-general/ (accessed 6 November 2013). launchofoecds2013economicsurveyofisrael.htm (accessed 23 December 2013). 91 Katie Carnie, Cleve Jones, Peter Feeney and John Reed, “Options for 82 “Energy Dialogue EU – Russia: The Ten exporting Israeli gas,” Financial Times, 6 November 2013, available at: th Progress Report,” European http://www.ft.com/intl/cms/s/0/b62ba372-463c-11e3-9487- Commission (2009), available at: http://ec.europa.eu/energy/ 00144feabdc0.html#axzz2jr5Zp7yU (accessed 6 November 2013). international/bilateral_cooperation/russia/doc/reports/progress10_en.pdf (accessed 6 November 2013). 92 Author interview, 11 December 2013. 12

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 15 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES Shimon Peres, President of Israel, left, with Herman Van Rompuy, President of the European Council nion n U ea op r the Eu ncil of ou he C T © state: “the Greeks and Cypriots are beginning to speak energy potential, Europeans may soon no longer need of Israel as an incredible strategic asset”.93 to tolerate Arab instability and authoritarianism for Traditionally resource-poor, Israel is also poised to the sake of their fuel economies. become a major player in the oil market. Harold Those same critics insist that the moral duty to oppose Vinegar – a legendary, flamboyant former chief Israeli activity past the Green Line (the pre-1967 any scientist at Shell – moved to Israel from Houston, in armistice line) outweighs any strategic or economic 2008, determined to develop the oil-shale deposits in benefit that Europe reaps from working with the Israel’s Shfela Basin.94 That basin is estimated to hold country. That argument, too, is hollow: hundreds of 250 billion barrels of oil; if all of that oil were brought thousands of Palestinians work in Israeli enterprises to market, Israel would become the world’s in the West Bank, where they earn double what they third-biggest oil exporter, behind Saudi Arabia and would in the Palestinian economy.98 Venezuela.95As the Financial Times recently observed, “Israel is on the threshold of becoming a major In December 2013, Vitens, the largest Dutch water energy power in the Middle East – with potentially company pulled out of its contract with Mekorot, the game-changing consequences for geopolitics and Israeli national water carrier, because the latter operates beyond the Green Line.99 The timing was economic relations in a volatile region”.96 highly unfortunate: a day earlier, Israel had signed an European critics of Israel have long contended that agreement at the World Bank, for water co-operation working too closely with Jerusalem harms EU grand with Jordanians and Palestinians – an agreement in strategy by undermining links to the Arab world. Yet, which Mekorot was, naturally, a key signatory.100 As in 2013, the United States overtook Saudi Arabia as Uri Rosenthal, the former foreign minister of the the world’s top oil exporter,97 and, given Israel’s own Netherlands, remarked, “The Western European countries think they’re rendering the Palestinians a service; but they might want to think again.”101 93 Author interview, 6 December 2013. 94 David Horovitz, “Should Israel get oil out of Vinegar, for an energy revolution?,” The Times of Israel, 8 September 2013, available at: http://www.timesofisrael.com/should-israel-g 98 Khaled Abu Toameh, “Palestinians working in et-oil-out-of-vinegar-for- settlements earn double,” an-energy-revolution/ (accessed 20 November 2013). The Jerusalem Post, 22 April 2011, available at: 95 Ken Silverstein, “Israel’s Natural Gas Finds Win the World’s Notice,” http://www.jpost.com/Middle-East/Palestinians-working-in-settlements- Forbes, 11 April 2013, available at: http://www.forbes.com/sites/ earn-double (accessed 23 December 2013). kensilverstein/2013/04/11/israels-natural-gas-finds-win-the-worlds-notice/ 99 “Israel slams Dutch company for cutting water ties,” (accessed 6 November 2013). The Associated Press, 12 December 2013, available at: 96 John Reed, “Israel set to become major gas exporter,” Financial Times, http://english.alarabiya.net/en/business/economy/2013/12/12/ Israel-slams-Dutch-company-for-cutting-water-ties.h 6 November 2013 lable at: http://www.ft.com/intl/cms/s/0/ tml , avai (accessed 18 December 2013). 82e01bda-4518-11e3-b98b-00144feabdc0.html?siteedition= intl#axzz2jr5Zp7yU (accessed 6 November 2013). 100 “Israel, Jordan, Palestinians ink water-sharing deal,” AFP, 9 December 2013, 97 “U.S. surges past Saudis to become world’s top oil supplier,” Reuters, available at: http://uk.news.yahoo.com/israel-jordan-palestinians- 15 October 2013, available at: http://www.reuters.com/article/2013/ sign-red-sea-dead-sea-080752216.html (accessed 18 December 2013). 10/15/us-oil-pira-idUSL1N0I51IX20131015 (accessed 10 November 2013). 101 Author interview, 17 December 2013. 13

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 16 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES has also been a member of the EU’s space agency, The and, two years ago, it signed an agreement allowing closer co-operation in the future. Israeli space Scientific and technology has been integral in projects from the famed Hubble space telescope, to the Cluster and Technological Huygens spacecraft.108 In 2012, scientists at the European Organization for Dimension Nuclear Research (also known as CERN) discovered the elusive Higgs boson, the so-called ‘God particle’ that gives mass to subatomic particles and allows the Overview universe as we know it to exist. The 2013 Nobel Prize for Physics went to Britain’s Peter Higgs and to Over the past 20 years, Israel has grown into a François Englert, a Belgian who has enjoyed close ties scientific and technological dynamo; barely a month with Tel Aviv University for three decades. 109 In goes by without news of an Israeli start-up’s December 2013, CERN members voted unanimously acquisition by a Silicon Valley behemoth.102 Europe, to make Israel to make the first non-European by contrast, has struggled to stay competitive with the member state, and the Jewish state formally joined the worldwide tech hubs of America and Asia, and has club the following month.110 increasingly turned to Israel for guidance.103 Framework Programmes In Solana’s words, “I’d like to emphasize and Since 1996, Israel has also been the only underline, with a very big, thick line [that Israel non-European country associated with the Framework participates] in [dealing with] all the problems of Programmes – the overarching blueprint for research and technology”.104 Similarly, as European Commission President José Manuel Barroso said in European scientific research, whose current iteration, the seventh, is better known as ‘FP7’. 111 As of 2012, “A continent such as Europe, that invests heavily December 2012, some 1,400 Israeli participants have in innovation, needs to have close links with a ‘start-up participated in ‘FP7’ programmes, more than double nation’,105 like Israel.”106 the Israeli contingent in its predecessor, ‘FP6’. 112 Galileo, European Space Israeli contributions to ‘FP7’ have ranged from Agency, and CERN limiting infections in hospitals, to combating climate change, to natural-disaster relief.113 Israel is a world leader in satellite technology, and, since 2005, has been a key player in ‘Galileo’, 108 “Israel signs cooperation agreement,” European Space Agency, 31 January 2011, available at: http://www.esa.int/A bo Europe’s attempt to rival America’s Global ut_Us/Welcome_to_ESA/ Israel_signs_Cooperation_Agreement (accessed 31 October 2013). Positioning System.107 For the last decade, the country 109 “Francois Englert, Tel Aviv U. prof and Holocaust survivor, shares Nobel for physics,” JTA, 8 October 2013, available at: http://www.jta.org/2013/ 10/08/news-opinion/world/tel-aviv-u-professor-one-of-physics-nobel- 102 See, for example: Julie Bort, “The 20 Hottest Startups From Israel,” Business prize-winners (accessed 11 November 2013). 110 “Israel Admitted As Full Member of Nuclear Physics Lab RN,” JTA, 12 Insider, 7 May 2013, available at: http://www.businessinsider.com/ CE the-20-hottest-startups-in-israel-2013-5 (accessed 23 December 2013). December 2013, available at: http://forward.com/articles/189203/ 103 Author interview with Oded Eran, 19 November 2013. israel-admitted-as-full-member-of-nuclear-physics/; see also “Israel raises flag at CERN,” CERN, 15 January 2014, available at: 104 Raphael Ahren, “Solana: EU has closer ties to Israel than potential http://home.web.cern.ch/about/updates/2014/01/israel-raises-flag-cern member Croatia,” Haaretz, 21 October 2009, available at: (both accessed 17 January 2013). http://www.haaretz.com/news/solana -eu-has-closer-ties-to-israel- 111 “FP7: the future of European Union research policy,” European Commission, than-potential-member-croatia-1.5700 (accessed 30 October 2013). 9 July 2012, availa ble at: http://ec.europa.eu/research/fp7/index_en.cfm 105 Dan Senor and Saul Singer, Start-Up Nation: The Story of Israel’s Economic Miracle (10 November 2013). (New York: Twelve, 2011). 112 For a full listing of Israeli contributions to FP7, see: “List of Projects in 7th 106 “Speech on the occasion of President Barroso’s honorary doctorate at the Framework Programme”, Delegation of the European Union to Israel, available University of Haifa,” European Commission, 10 July 2012, available at: at: http://eeas.europa.eu/delegations/israel/documents/eu_israel/ http://europa.eu/rapid/press-release_SPEECH-12-543_ ocale=en list_of_projects_7th_rtd_framework_programme_en.xls en.htm?l (accessed 23 December 2013). (accessed 2 December 2013). 107 “Cooperation between the EU & Israel on GALILEO: The European Global 113 For details of specific research projects, see: “Bar Mitzvah – 13 years of Positioning Service under Civilian Control,” Israeli European GNSS Info Centre, success,” The Israel-Europe R&D Directorate (2010), available at: available at: http://www.israel-gnss.co.il/category.aspx?id=17709 http://www.iserd.org.il/_Uploads/dbsAttachedFiles/Iserd_magazine_ (accessed 1 November 2013). English.pdf (accessed 20 November 2013). 14

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 17 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES Moreover, among 289 research projects approved by Britain and Israel: High tech the European Research Council in 2013, 32 – a Britain-Israel bilateral trade was £3.75 billion in 2012, staggering 11% – went to young Israeli scientists, or 34% higher than the previous year.123124 Much of behind only the United Kingdom and Germany.114 As Hebrew University’s Prof. Isaiah Arkin remarked, that growth is now concentrated in one critical field: “The Europeans aren’t doing Israeli researchers any high technology. In 2011, Chancellor George favour. They judge the research proposals objectively. Osborne inaugurated a tech centre, the UK-Israel They invest in the best.” 115 Passy, the Bulgarian Tech Hub, at the British Embassy in Tel Aviv – the reign minister, agreed, adding, “That sense only such facility sponsored by a government and former fo 125 That same year, of innovation is something we desperately need here located at its embassy, in the world. in the EU.”116 Prime Minister David Cameron appointed a tech envoy to Israel, the UK’s first-ever anywhere, and the The EU and Israel are now working to reach a government issued a White Paper naming Israel as a compromise to allow the latter to join the newest “key” strategic partner.126 Framework Programme (called ‘Horizon 2020’), in In November 2013, London hosted its second annual light of a recent EU directive against funding Israeli Innovate Israel summit, which included senior figures research activity in the West Bank.117 “The question of ‘Horizon 2020’ is important to Israel,” said Dr from Facebook; Microsoft; Google; and Virgin. 127 As Avineri. “But equally crucial to Europe, because it has Matthew Gould, London’s Ambassador to Israel, such a keen interest in Israeli high tech.”118 said, “If we could just persuade a portion of the Israeli companies that see their future in Silicon Israel is an active member of the EUREKA industrial Valley to come to London, it would be great for the R&D network (serving as president from 2010 to British economy”. 128 Or, as Alex Hoye, CEO of 2011),119 as well as the Competitive and Innovation Latitude Digital, lamented, “we don’t push ourselves Framework Programme for information technology like the Israelis. We want and need more of the Israeli and energy efficiency,120 and is the only non-European innovative spirit in Britain”.129 member of the European Cooperation in Science and Technology (COST) programme. Since 2000, Israel has participated in more than one-third of all of COST’s activities – 356 of a total of 1,048 – an astounding number for a country its size. Israel is also currently chairing COST’s social-science research into the phenomenon of femicide in Europe (including so-called ‘honour killings’).121 122 114 “RDI in Israel News,” Delegation of the European Union to the State of 123 Hugo Bieber, “I will boost Israel trade across the UK,” The JC.com, 14 July Israel (2013), available at: http://eeas.europa.eu/delegations/ 2013, available at: http://www.thejc.com/business/business-features/ israel/documents/eu_israel/290_en.pdf (accessed 5 November 2013). 109454/i-will 115 Ibid. -boost-israel-trade-across-uk (accessed 16 December 2013). 116 Author interview, 11 December 2013. 124 Nadav Shemer, “UK envoy: Trade boom proves no Israel boycott,” The Jerusalem Post, 29 February 2012, available at: http://www.jpost.com/ 117 Shlomo Cesana, “Israel and EU move closer on Horizon 2020 project,” Business/Business-News/UK-envoy-Trade-boom-proves-no-Israel-boycott Israel Hayom, 24 October 2013, available at: http://www.israelhayom.com/ (accessed 16 December 2013). site/newsletter_article.php?id=12809 (accessed 20 November 2013). 125 “The UK Israel Tech Hub celebrates two years of success,” British Embassy Tel 118 Author interview, 20 November 2013. Aviv, 7 October 2013, availab : https://www.gov.uk/government/ le at 119 “Eureka Member > Israel,” ka, available at: world-location-news/the-uk-israel-tech-hub-celebrates-two-years-of-success Eure (accessed 10 November 2013). http://www.eurekanetwork.org/israel/about (accessed 10 November 2013). 120 “Competitiveness and Innovation Framework Programme (CIP),” European 126 “Trading with Israel,” UK Israel Business, available at: Commission, 8 November 2013, available at: http://www.ukisraelbusiness.co.uk/?page_id=104 (accessed 29 October 2013). http://ec.europa.eu/cip/index_en.htm (accessed 10 November 2013). 127 “Innovate Israel,” Innovate Israel, available at: 121 “European Cooperation in Science and Technology (COST),” Weizmann http://innovateisrael.evolero.com/ (accessed 23 December 2013). Institute of Science, 16 June 2013, available at: http://www.we 128 David Sham izmann.ac.il/ ah, “High-tech diplomacy puts Israel and UK on the same RGP_open/postdoc/EU-COST.html (accessed 2 November 2013). page,” The Times of Israel, 30 October 2012, available at: 122 “Femicide across Europe,” European Cooperation in Science and Technology, http://www.timesofisrael.com/high-tech-diplomacy-puts-israel-and-uk- available at: http://www.cost.eu/domains_actions/isch/Actions/IS1206 on-the-same-page/ (accessed 5 November 2013). (accessed 2 December 2013). 129 Ibid. 15

HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 18 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES Conclusions and EU-Israel pharmaceutical agreement, he said, represented a “decoupling” of bilateral ties from ‘the Recommendations conflict’, and that a similar approach ought to be taken for other Israeli industries which serve Europe’s interests. “It’s about what benefits Europeans,” Freudenstein said. “It’s that simple.”132 Given the benefits that accrue to Europe, from its relationship with Israel, the question becomes how to Dr Avineri, who also holds a visiting professorship at further deepen those ties. The 2012 upgrade in Budapest’s Central European University, lamented relations was an essential step; but, a full upgrade in that EU Mideast policy often has more to do with relations would grant an official, symbolic imprimatur posturing than practicality: to the growing Europe-Israel relationship. The EU has not been very powerful in affecting At the moment, the EU’s business community would Israeli-Palestinian relations: first, because it support a full upgrade, as would many f its member o lacks the clout of the United States; and, states’ top officials. The European Parliament has a second because there isn’t one EU Mideast history of inflammatory, but ultimately non-substantive, policy, but many […] So it’s easy for [the] EU anti-Israel resolutions;130 but, it too could be swayed, to make symbolic gestures or declarations if the evidence of benefits to the EU is sufficiently which don’t really change facts on the ground, compelling (as it was surrounding the pharmaceutical but do change atmospherics. The EU hasn’t agreement of 2012). been able to solve conflicts on its perimeter, It is also essential to push back against attempts – still such as Cyprus; Kosovo; or Bosnia. I’ve often small, but determined and growing – to boycott Israel told them, “Once you’ve solved Nicosia in certain fields of European commerce, academia, [contested by Greek and Turkish Cypriots] and and culture. The hypocrisy and double-standards of Srebrenica [contested by Bosnians and Serbs], such boycott calls must be highlighted; after all, no come tell us how to solve Jerusalem”.133 similar demands exist to boycott Turkey over its It’s precisely these atmospherics – questions of tactics occupation of northern Cyprus, or of Morocco over rather than strategy – on which the EU and Israel Western Sahara, and the EU conducts business as tend to differ. However, when considering the full usual with both.131 picture of the strategic relationship (including not just Roland Freudenstein, deputy director of Brussels’ diplomacy, but the equally critical realms of security; Centre for European Studies, said that European economy; and science) the close nature of the policymakers realise that the Israeli-Palestinian issue EU-Israel relationship becomes clear. Not only is is but one of many conflicts in the Middle East: Sunni Israel’s relationship with the EU and its member states vs. Shia, Islamist vs. liberal, Arab vs. Persian, and closer than commonly portrayed, but, in the final innumerable local enmities. Debunking the false analysis, it represents a strategic asset to the European notion that resolving ‘the conflict’ would usher in a bloc and its constituent states. new era of peace and prosperity for a troubled region At this critical juncture in its history, the European would go far towards a more realistic assessment of Union will be unable to emerge safe; prosperous; the Middle East’s present and future. The 2012 innovative; and influential without strong state-to-state relations at home, and healthy alliances with strategic 130 For example, a European Parliament resolution accused Israel of “creating an partners in its neighbourhood. It should start by institutional and leadership vacuum in the local Palestinian population”; see: “European Parliament resolution of 5 July 2012 on EU policy on the West further recognising and enhancing its critical strategic Bank and East Jerusalem”, European Parliament, 5 July 2012, available at: http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP// with the State of Israel. relationship TEXT+TA+P7-TA XML+V0//EN&language=EN -2012-0298+0+DOC+ (accessed 16 December 2013). 131 Raphael Ahren, “Why is this occupation different from all other occupations?,” The Times of Israel, 25 December 2013, available at: 132 Author interview, 8 December 2013. http://www.timesofisrael.com/why-is-this-occupation-different-from-all- other-occupations/ (accessed 8 January 2014). 133 Author interview, 20 November 2013. 16

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