Ramallah: A new European Union resolution, which distinguishes between 1948 areas and Israeli colonies in the occupied West Bank, is expected to be passed tomorrow.

The resolution paves the way for new sanctions against Israeli companies operating in West Bank colonies.

“EU agreements with Israel are only applicable to the state of Israel,” a senior EU diplomat told the Israeli daily, the Haaretz.

“The EU will continue to closely monitor developments on the ground and their broader implications,” read the draft resolution.

“The EU will consider further action to protect the viability of the two-state solution, which is constantly eroded by new facts on the ground.”

The resolution also includes references to pushing forward the two-state solution.

The draft backs France’s suggestion that an international support group be established to promote the Israeli-Palestinian peace process and to convene an international peace conference in order to restart regional, multi-sided negotiations between Israel, the Palestinians and the Arab states.

Israeli officials, who are making a last-ditch effort to kill the EU bill, expect damaging repercussions on Israeli firms and businesses.

Palestinian analysts have welcomed the bill and say they predict a more active EU role in addressing the Israeli-Palestinian conflict.

“We expect the EU resolution will be harsh and serve as a warning to Israel,” said Talal Okal, a Palestinian political analyst.

“The bill could also pave the way for further international pressure on Israel to curb its brutal policies in occupied Palestinian territories,” he said.