Israel could end up on a collision course with the European Union and face sanctions like apartheid-era South Africa unless the Israeli-Palestinian conflict is resolved, a confidential government report warns. The document, a 10-year forecast prepared by Israel's Foreign Ministry, predicts that the Jewish state could become increasingly isolated internationally as the EU grows more influential, political sources said. The report says that if the recently expanded 25-nation bloc can set aside internal differences and forge a unified foreign policy, it could "harm Israeli interests" by cutting into the clout wielded by the United States, Israel's chief ally.