Since the establishment of the Palestinian National Authority, the European Union has adopted a diplomatic mediating role in the region, highlighting that the resolution of the Israeli-Palestinian conflict is key to the development of the region. The European Union, as an international actor, has been committed to improving the humanitarian and economic situation of the Palestinian National Authority (PA) by the support of principles of building the institutions of a democratic, independent and viable Palestinian state, living in peace and security with Israel. The EU relations with the PNA have become more visible since the outbreak of the Al-Aqsa Intifada in 2000 due to stronger EU peace-keeping and development efforts through agreements and the formation of the “Quartet”. The EU has participated in bilateral and multilateral agreements in order to support the creation of a democratic PA. The European Union has influenced the PA to different extents. There have been clear boundaries to the full effectiveness of EU conditionality on the PA due to the nature of the agreements per se and due to the sui generis nature of the diplomatic relations between the EU and the PA. The advent of Hamas victory brings a new face to the EU-PA relations putting EU leverage in question.