	Introduction

Along with the United States, Germany is widely considered one of Israel's closest allies. Given Germany's long-standing support of Israel and close ties to the United States, Israeli and Bush administration officials have generally welcomed the idea of increased German engagement in the Middle East. On the other hand, the presence of German troops in Lebanon, growing public opposition to Israeli policies and Germany's commitment to a common European approach prompt others to emphasize an increasing potential for divergence between German policy on the one hand and Israeli and U.S. policies on the other. Current German-Israeli Relations

German reparations and compensation for crimes committed during the Holocaust and long-standing defense and scientific cooperation continue to represent the cornerstone of a robust German-Israeli bilateral relationship. Implications for German Middle East Policy

Successive German governments have prioritized support for Israel as a cornerstone of German policy in the Middle East. During Israel's July 2006 conflict with Hezbollah in Lebanon, Germany and the United Kingdom were the only two EU member states officially opposed to an immediate cease-fire. Current Middle East Policy Issues

Chancellor Angela Merkel and Foreign Minister Frank Walter Steinmeier took office in November 2005 promising continuity in a German Middle East policy based on a commitment to protect Israel's right to exist; support for a two-state solution to the Israeli-Palestinian conflict; a commitment to a European framework for peace; and a belief that U.S. engagement in the region is essential. Since the historic deployment of German troops to the Lebanese coast in October 2006, Merkel and Steinmeier have increased their calls for revived U.S. and Quartet engagement in the Israeli-Palestinian peace process, joining other European leaders in asserting that the conflict lies at the root of many of the other challenges in the Middle East. While Israeli and U.S. officials appear to welcome increased German engagement in the region, both Israel and the United States have expressed disapproval of German efforts to engage Syria in the Arab-Israeli peace process, and have reacted skeptically to German-supported proposals to link the resolution of other major disputes in the region to the Israeli-Palestinian peace process. The Israeli-Palestinian Conflict37

Chancellor Merkel has announced her intention to revive Quartet efforts to advance the Israeli-Palestinian peace process while Germany acts as the EU's representative to the Quartet during its EU presidency in the first half of 2007. Transatlantic Implications

The United States and Germany share several national security interests and policy priorities in the Middle East. On the other hand, German officials and politicians consistently assert that Germany's commitment to Israel and a common transatlantic approach to the Arab-Israeli peace process will continue to remain the paramount drivers of German policy in the region. As noted previously, Germany has been one of the largest donors to the PA, and has provided direct assistance to the Palestinian people through the EU's Temporary International Mechanism (TIM) since July 2006.
Most observers agree that moral considerations surrounding the Holocaust continue to compel German leaders to make support for Israel a policy priority. Since 1949, successive German governments have placed this support at the forefront of their Middle East policy and today, Germany, along with the United States, is widely considered one of Israel's closest allies. Germany ranks as Israel's second largest trading partner and long-standing defense and scientific cooperation, people-to-people exchanges and cultural ties between the two countries continue to grow. On the other hand, public criticism of Israel in Germany, and particularly of its policies with regard to the Israeli-Palestinian conflict, appears to be on the rise.
Since the mid-1990s, German policy toward Israel has become progressively influenced by Germany's commitment to a two-state solution to the Israeli-Palestinian conflict. Germany has been one of the single largest contributors to the Palestinian Authority (PA) and an increasingly vocal advocate for European Union (EU) engagement in the Middle East. Germany's September 2006 decision to send a naval contingent to the Lebanese coast as part of an expanded United Nations mission after Israel's July 2006 war with Hezbollah is considered to have significantly raised German interest in a resolution to the Israeli-Palestinian conflict and sparked widespread debate within Germany regarding the evolution of the German-Israeli relationship and Germany's role in the region. Stating that the Israeli-Palestinian conflict lies at the root of other challenges in the Middle East, German Chancellor Angela Merkel has announced her intention to revive international engagement in the peace process while Germany holds the EU's rotating presidency during the first half of 2007.
Given Germany's long-standing support of Israel and close ties to the United States, Israeli and Bush Administration officials have generally welcomed the idea of increased German engagement in the region. For their part, German officials and politicians assert that their commitment to Israel and active U.S. involvement in the Israeli-Palestinian peace process remain the paramount drivers of German policy in the Middle East. However, most experts indicate that Germany will be hard-pressed to overcome both U.S. inattention stemming from a perceived preoccupation with Iraq, and diminished support for Israel and the United States among other EU member states, to forge a revived transatlantic approach to the peace process. Furthermore, the presence of German troops in Lebanon, growing public opposition to Israeli policies and Germany's commitment to a European approach lead others to highlight a growing potential for divergence between German policy on the one hand and Israeli and U.S. policies on the other.
This report will be updated as events warrant. For related information, see CRS Report RL31956, European Views and Policies Toward the Middle East, by [author name scrubbed]; CRS Report RL33476, Israel: Background and Relations with the United States, by [author name scrubbed]; and CRS Report RL33530, Israeli-Arab Negotiations: Background, Conflicts, and U.S. Policy, by [author name scrubbed].