Melanie Phillips explains Europe's motives in affixing the damning label -
It is used for very specific political purposes. Since Nazism is
totally beyond the pale – and since the Israel-haters believe, falsely,
that Israel’s legitimacy rests upon the Holocaust – tarring it as a
Nazi state delegitimises it and thus advances the agenda of its
destruction. . .
She says further:
I would also make a further point . . . Calling Israel a Nazi state retrospectively sanitises the Holocaust and lets complicit Europe off the hook – Britain too. After all, Britain was partly responsible for the murder of thousands of Jews to whom it refused entry to Palestine -- in order to appease the Arabs of Palestine who were in league with the Nazis – and who perished in the Holocaust as a result. If the Jews have become Nazis, then their victimisation at the hands of the Nazis stops being the crime of crimes.
It also allows people safely to hate the Jews once again. As I was told
to my face by a prominent man of impeccable liberal views, the enormity
of the Holocaust had meant that it was no longer possible to disdain or
loathe the Jews as before, at least not in public. But with Israel
painted as a Nazi state, it can be open season on the Jews once again. (More. . .)