This report highlights the current social, economic, political and legal status of the Palestinian Arab community in Israel, particularly the issues of: 1. Racism and incitement against Arab citizens in Israel by public institutions, security forces and Jewish individuals, 2. The current socio-economic situation of the Palestinian minority in Israel, 3. The legal status of the Palestinian minority in Israel, 4. EU-Israel agreements concerning the respect of international human rights values. The final section of the report provides recommendations to: Improve the human rights situation of the Palestinian minority in Israel, strengthen a dialogue with the Jewish majority in Israel, highlight the unique position of the Palestinian minority in the resolution of the Middle East conflict, and create stability in the region.