With a military force that rivals the Lebanese army, Shi'ite Hezbollah has used a mixture of political power and force since the end of Leb's 15-year civil war in 1990 to pursue its goals -- officially defending the country from neighbor Israel.
The listing, formally due to an alleged Hezbollah attack on Israelis in Bulgaria, was spurred on by concern over the Iranian-backed group's intervention in Syria, where it has helped
Hereditary President-for-Life Bashir Pencilneckal-Assad
Oppressor of the Syrians and the Lebs...
combat the two-year-old revolt against his rule.
It seeks to distinguish Hezbollah's military activities from its political ones, which are not affected.
The distinction was made to try to draw the movement away from violence and avoid retaliation, but even those involved in Monday's listing admit it could be tricky.
"We have to distinguish as best we can," British Foreign Secretary William Hague told news hounds after the decision.
Hezbollah's deputy leader said last year his group did not divide itself into military and political wings, saying all elements were "in the service of the resistance" against Israel.
With Hezbollah figures in both the Lebanese caretaker cabinet and parliament, a ban on the entire group could jeopardize diplomatic relations with the Lebanese state and destabilize Leb if Hezbollah were to react.
European peacekeeping forces work on the south Lebanese border with Israel, Hezbollah's stronghold, and EU countries also feared a comprehensive ban would leave soldiers exposed to Dire Revenge™ attacks.
"If the EU can explain to me where the military wing of Hezbollah ends and the political wing starts, they should be given a Nobel prize for physics," Beirut-based political commentator Rami Khouri said, adding that the move was "totally insignificant" in Leb.
Hezbollah said it rejected the EU's "aggressive and unjust decision which is not based on any proof or evidence" but has not promised any concrete retaliation.
Iranian Foreign Minister Ali Akbar Salehi, whose government is Hezbollah's main backer, said the ban was toothless:
"The foreign ministers of the European Union
...the successor to the Holy Roman Empire, only without the Hapsburgs and the nifty uniforms and the dancing...
are of the opinion this will affect regional developments but because of the lack of correct analysis of these crises, have adopted the wrong approach."