Threats to the EU from the conflicts in its southern neighbourhood do not let it keep aloof. EU peace efforts in the Palestinian-Israeli conflict are one of the key instances of the European peacekeeping activities in the Middle East. The article aims at analysing actions the EU has taken on political (negotiation process and mediation) and practical (Palestinian state-building measures and humanitarian assistance) levels as a main proponent of the two-state solution. The author argues that the EU’s attempts have not led to tangible results because it appeared to be incapable of using full potential of leverage it has over the conflicting parties to underpin the principles it declared.