Israel has been weak in developing long-term and holistic grand-strategies. Weaknesses in grand-strategic thinking in Israel are also evidenced by inadequate Israeli policies towards the European Union.Israel looks up to distant America and keeps its political distance from nearby Europe. Israel behaves as if it were an island in the Atlantic Ocean rather than a nation neighboring the enlarged EU. Yet, the EU is Israel's economic, cultural and, in many respects, political hinterland. Israel enjoys special status in the EU, a status that grants Israel extensive rights in many areas such as research and development and economics. Lack of a grand-strategy towards the EU is a serious omission, which can easily carry a high cost for Israel's international standing and security, as well as damage to Israel's scientific-technological, and economic development. This paper tries to help meeting this Israeli need by suggesting some foundations for an Israeli grand-strategy towards the EU. It does so by exploring the main misperceptions in Israel and the EU, analysing deep disagreements and suggesting some principles for an Israeli grand-strategy towards the EU. Hopefully, this paper can also help the EU to develop a high-quality grand-strategy towards Israel, which can advance the values and interests of both sides. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]