prospect of stronger economic integration between states in the region, which would see enhanced relations and pave the way for greater stability there.
The notion of “economic peace” – that shared economic benefits could mitigate conflict – has long informed diplomacy in the region. However, so far such benefits do not offer sufficient incentives to overcome entrenched political grievances.
Political differences remain the overriding factor shaping relations between states and threatening to cause instability. This is the case among both states that have formal peace agreements and others that continue to be in a state of belligerency.
The European Union has limited capacity to alter much of the political landscape in the region. Nonetheless, there are a number of important areas where the EU could leverage its diplomatic power and use the gas reserves as a catalyst to enhance regional stability.
Such measures include: expanding efforts to encourage Egyptian reforms; mediating maritime disputes between Lebanon and Israel; reviving negotiations between Cyprus and Turkey; and supporting the Palestinians in their effort to access their own natural resources.
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