Download DOC - Europa.eu

EUROPEAN COMMISSION
MEMO
Brussels, 8 October 2014
Key findings of the 2014 Progress Report on Bosnia
and Herzegovina
The Progress Report on Bosnia and Herzegovina is part of the 2014 Enlargement Package
adopted by the European Commission on 8 October. The Commission concluded that
Bosnia and Herzegovina has made very limited progress in addressing the political criteria.
Bosnia and Herzegovina has not overcome the standstill in the European integration
process while most other countries in the region are moving ahead decisively. This
regrettable situation is caused mostly by a lack of collective political will on the side of the
leadership. The efficiency and functioning of the political institutions at all levels of
government need to be improved and a well-functioning coordination mechanism on EU
matters be set up urgently.
As manifested in the social protests of early 2014, addressing socio-economic needs of
citizens must be the priority of all levels of government, in particular tackling the very
high youth unemployment and assisting those in need, also following the heavy floods in
May.
In answer to the protests, the Commission started three initiatives to shift focus towards
reform and issues of direct concern to citizens. It expanded the EU-BiH Structured
Dialogue on Justice to additional rule of law matters. It installed a joint EU-BiH Working
Group to accelerate the implementation of EU funded projects and it focused on
strengthening economic governance. The 'Compact for Growth and Jobs', the first fruits of
this new approach, presented on 24 July, should be the basis for urgent economic reforms
and for the National Economic Reform Programme which the Commission expects the
country to develop by early 2015. The Commission also expects that Bosnia and
Herzegovina will accept to adapt the trade part of the Interim Agreement and Stabilisation
and Association Agreement in view of Croatia’s accession to the EU on the basis of the
traditional trade between the two countries as a matter of urgency.
Political criteria
Once again the country has made very limited progress in addressing the political
criteria. There has been no tangible progress in ensuring institutions are functional and
sustainable. Likewise, the Parliamentary Assembly of Bosnia and Herzegovina has made
very limited progress in adopting EU-related legislation. Political and inter-ethnic
disagreements had a major negative effect on the work of the assemblies at the State
level and in the Federation.
Despite intense facilitation efforts by the Commission, the country has still not
implemented the European Court of Human Rights judgement in the Sejdić-Finci case.
This led Commissioner Füle to end his involvement in February. As long as the Sejdić-Finci
case is not addressed the country remains in breach of its own international commitment.
MEMO/14/554
The lack of an effective coordination mechanism on EU issues continues to affect the
country's interaction with the EU including the level of financial assistance. Countrywide
sector strategies in areas such as transport, energy or environment have still not been
agreed but are prerequisites for assistance in those areas.
Given the political climate, very limited progress has been made in reforming public
administration and improving its capacity to fulfil the requirements of EU integration. The
efficiency and functioning of the public administration at, and between, different levels
remains an issue of serious concern. Likewise the area of judicial system reform saw little
progress. The Structured Dialogue on Justice remains an important platform to consolidate
consensus on judicial reforms and has been further broadened to other rule of law related
matters. There was little progress in advancing reforms to reduce corruption, which
continues to affect the entire public sector and remains most acute in the areas of service
delivery and access to employment.
Increased political and financial pressure on the media and intimidation and threats
against journalists and editors are of serious concern. Effective prevention and
investigation of cases of hate speech, violence and discrimination against LGBTI persons
need to be ensured.
Economic criteria
In 2013 the economy recovered somewhat and growth reached 1.5%. However,
this modest upturn faltered in the first half of 2014 as growth slowed down again, and
short-term growth was further undermined by the floods in May. Unemployment remained
persistently high. The quality of public finances remained low, even though public finance
management was somewhat strengthened. Despite some minor improvements, consensus
on economic and fiscal policy essentials remains weak, thus impeding reforms at the
country level. The large and inefficient public sector with multiple overlapping
competences continues to impose risks for fiscal sustainability. An inefficient legal and
judicial system hampers enforcement capacity and remains a clear deterrent for
investment and a source of corruption.
Like last year, Bosnia and Herzegovina has made little further progress towards
a functioning market economy. Considerable further reform efforts need to be pursued
with determination to enable the country to cope over the long-term with competitive
pressure and market forces within the Union. The low efficiency of public spending in
Bosnia and Herzegovina remains a concern. In this context, fiscal reporting needs to be
further improved. Continuing structural rigidities such as the excessive labour taxation,
poorly targeted social transfers and inefficiencies of the educational system require
measures to free labour demand. The share of public companies in the economy remains
persistently high. The authorities should restart privatisation in order to improve the fiscal
situation and bring more competition.
EU legislation
The lack of genuine political support for the EU agenda, the absence of a functioning
coordination mechanism on EU matters and internal disputes on competencies have
resulted in limited progress as regards approximation to EU legislation and standards in a
wide range of sectors. In a number of areas further progress is hampered by a lack of
country-wide strategies.
2
Regrettably, lack of alignment with EU requirements in the areas of agriculture and rural
development, food safety, veterinary, phytosanitary policy and fisheries continues to
prevent exports of goods of animal origin to the EU. There has been a serious and
persistent breach of the country's obligations under the Energy Community Treaty in the
gas field which needs to be addressed urgently. Progress can be reported in the internal
market area with the adoption of the law on public procurement, which enables the
country to align with the related EU legislation.
Key dates
1999: The EU proposes the new Stabilisation and Association Process for countries of
Southeast Europe
June 2000: The European Council states that all the Stabilisation and Association countries
are potential candidates for EU membership.
June 2003: Thessaloniki Summit; the EU perspective for the Western Balkans is confirmed
June 2008: Signature of the SAA and Interim Agreement on trade and trade-related issues
December 2010: Visa-free travel to Schengen area for citizens of Bosnia and Herzegovina
June 2011: Launch of Structured Dialogue on Justice with the aim of further consolidating
the judicial system in Bosnia and Herzegovina
September 2011: Reinforcement of EU's role in Bosnia and Herzegovina following the
decoupling of EU Special Representative's mandate from the Office of the High
Representative
June 2012: Launch of High Level Dialogue on the Accession Process to address EU
accession requirements
More information at:
http://ec.europa.eu/enlargement/countries/strategy-and-progress-report/index_en.htm
3