Bosnia and Herzegovina risks losing hundreds of millions of euros from the European Union’s Growth Plan due to delays in implementing reforms and a lack of political consensus. Of the initially allocated 976.6 million euros, the amount of available funds has already been reduced by ten percent, while key steps on the path toward the EU remain blocked.
Funds intended for reforms and infrastructure projects remain inaccessible; outstanding issues include judicial reform and the appointment of Bosnia and Herzegovina’s chief negotiator with the European Union. Failure to meet these obligations carries the risk of losing more than 370 million euros.
One proposal to break the deadlock concerns the appointment of the chief negotiator. A potential compromise involves the House of Representatives of the Parliamentary Assembly of BiH making the appointment, based on a proposal from the Council of Ministers of BiH.
Proponents of this solution believe it could resolve the dispute over who has the authority to make the appointment – given that the Presidency of BiH is responsible for conducting foreign policy, whereas the role of the chief negotiator is considered operational and technical in nature.
Montenegro is cited as an example of progress in the European integration process, having adopted several hundred laws related to its EU path over the past four years. It is noted that the Parliamentary Assembly of BiH could undertake a similar legislative process, provided there is political agreement.
According to the report, the stagnation on the path toward the EU has consequences for both the citizens and the economy. Problems at the borders, difficulties faced by transport operators, and additional costs for businesses are just some of the consequences of the slow process of moving closer to the European Union.
Among the outstanding issues is the establishment of an appellate division within the Court of BiH, including the determination of its seat. The position put forward insists that the seat be located in Banja Luka, within the territory of Republika Srpska.
The European Commission has previously warned that judicial reform and the appointment of a chief negotiator are key steps for BiH’s progress toward European Union membership. Kaja Kallas, the EU High Representative for Foreign Affairs and Vice-President of the European Commission, also emphasized the importance of these matters during her visit to BiH in November 2025.
Although the European Commission approved BiH’s Reform Agenda in December 2025, access to funds under the Growth Plan remains contingent upon meeting specific conditions and completing the necessary legal procedures.
In the meantime, reaching political agreements and implementing reforms remain the primary challenges for the country’s further progress.
