1. The Europeans would have to look and solve their own problems. The Middle Eastern problem is deflecting attention from their own shortcomings.
2. Oil. They are afraid the allies of certain Palestinians, at this juncture, may raise the price of crude, or they may reduce production, driving up the price of crude, something the Middle Eastern's are quite adept at doing.
3. Cognitive dissonance....something alluded to in the article. The Europeans have been supporting so much of the evil in the Middle East by propping up Arafat & Co., that they don't want to look as fools (although people with any sense sees through this); or they don't want to admit their enormity of their past mistakes. If the Europeans change their tactics and policies, well, that's like admitting they've been wrong....we must, after all and most importantly, save face, not find solutions.