The study discusses the position of the European Union on Jerusalem and the so-called "Deal of the Century," with US recognition of the city as Israel's undivided capital. In view of the special nature of the European-American relationship, the study tries to clarify the extent to which Europe's existing position regarding the city will remain intact, given reluctance on the part of many international parties to take part in "the Deal," or if Europe now will follow and support America. The classic (and generally sustained) European position that Jerusalem is one of the "permanent status" issues between the Palestinians and the Israelis comes under scrutiny, along with the possibilities of Europe deviating from its stance and politically drifting towards America – giving in to pressures that could arise with implementation of the "the Deal".