This is something I have been aware of for a long time. But here is the smoking gun for all those who doubt that"old Europe" replaced the USSR as the fueler of the Arab-Israeli conflict. Andrew Sullivan alertness is one of a kind. So here is what he call the money quote -

"Schroeder claims that the EU funds Palestinian organisations, well aware that much of the funding ends up in the hands of terrorists. While Schroeder says that the EU does not exactly intend to wage war on Israel, it hopes that a deepening conflict in the region will highlight America's inability to mediate a satisfactory peace deal - and that Europe will then be able to ride to the rescue".

As they say, plus ca change . . .