The Association of Employers in the Federation of BiH has announced that, at the end of every business calendar year, employers face significant pressure due to rising costs of doing business and a decline in competitiveness within both domestic and international markets.
According to the Association, the latest such blow to the economy comes in the form of proposed electricity supply contracts for 2027, which include price increases for business entities ranging from 26 to 31 percent.
The statement notes that employers operating in BiH—who also maintain business operations in other markets—point out that the electricity price proposed for 2027 for companies in BiH would be higher than in Germany, the Czech Republic, China, the United States, and Brazil, while remaining on par with prices in Poland. According to information from these companies, this marks the first time in the last 20 years that the price of electricity in BiH will be higher than in the aforementioned countries.
“This represents the largest increase and the highest electricity price, placing companies that purchase power from EP BiH in a highly uncompetitive market position relative to the broader region,” the Association of Employers in the FBiH stated.
They view this as an enormous cost increase that will directly impact company operations, their competitiveness, and their final products. The increase in electricity prices represents an additional blow to the economy as 2027 approaches—especially considering that discussions regarding the minimum wage (the price of labor) for the coming year, as well as other business conditions, are yet to take place.
The Association of Employers in the Federation of BiH warns that the business sector is facing a series of unresolved issues, while the anticipated reduction of the burden on business has failed to materialize. Throughout 2026, there was no progress on fiscal reforms aimed at easing the fiscal burden, and more than 2,800 para-fiscal levies remain in effect for legal entities. At the same time, businesses have recently had to contend with rising costs for gas, utility services, fuel, road tolls, and other operational inputs.
- The problem of a well-entrenched grey market remains unresolved; according to certain estimates, it accounts for more than 30 percent of the GDP in the Federation of Bosnia and Herzegovina. No progress has been made regarding EU integration or the resolution of issues critical to business operations—such as the Carbon Border Adjustment Mechanism (CBAM), Bosnia and Herzegovina’s status on the MONEYVAL “grey list,” digitalization, restrictions on the duration of stay for professional drivers from BiH within the EU, protection against double taxation, and access to available European funds and incentives under the Growth Plan for 2026 and 2027. Consequently, we remain even more isolated from neighboring countries, which are making extensive use of such funds to further strengthen the competitiveness of their economies relative to BiH—this is the assessment provided by the Association of Employers.
It is further noted that the labor and employment market is in a state of neglect. Despite the fact that approximately 260,000 unemployed individuals are registered with the Federal Employment Institute, the business sector faces a shortage of necessary labor. At the same time, obstructions and administrative hurdles persist regarding the hiring of foreign workers. Furthermore, rising costs in the public and social sectors place an additional burden on employers in the real economy. The Association of Employers in the FBiH has initiated a meeting with representatives of Elektroprivreda BiH (EPBiH) and the FBiH Government to discuss the announced increase in electricity prices for the business sector. They expect the management of EPBiH to—as they put it—responsibly assess the anticipated impact on the economy (and, by extension, on the citizens of the FBiH), take timely action, and prevent the damage that will inevitably occur if this price hike is pushed through.
“Individual price increases cannot be viewed in isolation from the overall business climate and the various other burdens that business owners face in their operations. Employers call for a serious and responsible socio-economic dialogue with all relevant partners. This would allow for a comprehensive examination of these and other operational challenges, ensuring a predictable and competitive environment for domestic businesses and employers, while averting the damage to the business climate that will clearly ensue unless these and other issues are brought under control immediately,” states the press release from the Association of Employers in the FBiH.
