Israel has always kind of gone its own way, a European like country that doesn't really fit in with the Mid-East or look toward Europe, but what if like Turkey Israel from 1949 on tried to aline with Europe (and maybe after 1954 Western Europe) could Israel ever fit into the European Family? or the EU (or whatever shape it takes ITL) or would Israel suffer the same fate as Turkey always stuck out in the cold trying to get in?
what would a European Israel look like? (and Europe with Israel?) and what would a "Turkish" Israel look like?
If Israel is looking to Europe, I assume America is not giving them any special support? Though very plausible, that would lead to ASB level consequences.
Without American support to help airbrush things, Europe might look much more closely at the 1948 Exodus/Disaster that played such a significant role in the foundation of Israel. WWII would make that difficult, but not impossible. If that did happen, it could make Israel much more internationally isolated.
Five possible outcomes I can think of:
1) Europe substitutes for America. Suez Invasion successful. No other significant differences in history.
2) Russia substitutes for America and Europe. Warsor Pact politics in the Middle East become *very* interesting. 'Cuban' Missile Crisis takes place in Mediterranean Sea. Israeli tank experience exported to Iraq via Russia causes major headaches for allies during Gulf War. Western panic over Iraqi scuds stationed in Israel.

3) Republic of Jerusalem (or some such) as suggested OTL by India and Iran. Permanent solution to 1948 Exodus = (eventual) peace in middle east. Maybe.

4) Israel is the new South Africa until it's collapse in 1994. Within ten years the new Islamic Prime Minister is declaring that AIDS is a fictional disease and condoms are evil. This marks a new high point in relations between New Palestine and the Vatican.
5) Israel defeated during war due to no external support or nuclear weapons program.
Personally I think (2) looks like the most fun. After all, if you're going to break a time line, break it good and hard...[FONT="][/FONT]