The European Union has given the green light for Bosnia and Herzegovina to access the funds from the Growth Plan and the €976.6 million fund, which represents a unique opportunity for systemic reforms. The European Commission says that it is now up to Bosnia and Herzegovina to sign and ratify the relevant documents, including the Loan Agreement, and only then can it receive the available funds.
The Commission concluded that the Reform Agenda meets the objectives of the Growth Facility Regulation. The Agenda defines priority reforms to accelerate the green and digital transitions, strengthen private sector development, retain talent, and strengthen fundamental rights and the rule of law.
“It is now up to Bosnia and Herzegovina to sign and ratify the Facility Agreement and the Loan Agreement. The allocation of funds to Bosnia and Herzegovina, including pre-financing, can only start after the aforementioned agreements enter into force and all conditions are met,” the Commission said.
Business leaders welcome the European Commission’s decision and say that all EU funds intended for the development of the business environment in Bosnia and Herzegovina are welcome.
“What we can see from some of the countries in the region, especially Poland, which is now already announcing itself as the number one economy, is that it is precisely by using these European funds, or rather funds from European funds, that they have reached a high level of technological development, as well as economic activity,” says Zoran Škrebić, president of the Union of Employers of Republika Srpska.
“The most important thing is that this money must be used for energy, for railways and for small and medium-sized enterprises, in terms of strengthening economic activity. If this is a problem for someone, I really see no reason for it. Because we do not have these funds available for these purposes,” emphasizes economic analyst Zoran Pavlović.
The approval of the Reform Agenda shows that Europe has not given up on us, but throughout the entire process, on the other hand, the lack of seriousness of the institutions of Bosnia and Herzegovina could be seen, because this work should have been completed long ago, according to Transparency International, which is a member of the EU Integration Monitoring Initiative.
“Of course, it is to be welcomed, but it should also be noted that Bosnia and Herzegovina is generally late in adopting all the reform measures it has committed to, and, among other things, one of the basic prerequisites is the appointment of a national coordinator for this entire process,” emphasizes Damjan Ožegović from TIBiH.
Although the decision of the European Commission is generally viewed with optimism, the Government of Republika Srpska is not enthusiastic or impressed with it.
“That Reform Agenda will return here again. We have a number of objections to that Reform Agenda, which we will invest in it. It will take time for it to be implemented, in terms of its concrete implementation. I can tell you that,” said the Prime Minister of Republika Srpska, Savo Minić.
Bosnia and Herzegovina is the last of the six Western Balkan countries to adopt the reform program insisted on by the European Commission. This document was adopted and sent to Brussels on September 30, just a few hours before the deadline. The reason for this delay was several months of internal political wrangling.
Due to the delay, the European Commission has already withheld 108.5 million euros from Bosnia and Herzegovina over the summer from the first tranche of the Growth Plan, which amounts to around one billion euros. This money, which consists of grants and soft loans, has been redirected to the other five Western Balkan countries. Whether we will be left without the second tranche will be known soon.
