If Bosnia and Herzegovina is still unable to deliver the finalized Reform Programme, further progressive reductions in total allocations for BiH are foreseen – the Delegation of the European Union (EU) to BiH warned.
In a statement to Fena, they state that before the end of 2027, financing under the Instrument for Pre-Accession Assistance (IPA) is available exclusively for projects in the field of environmental protection.
They also clarify that new EU support for investments in other sectors will be available exclusively through the Growth Plan, specifically through the Reform and Growth Instrument, which provides investments in exchange for the implementation of reforms agreed within the Reform Programme.
– Accordingly, without the Reform Programme, the European Commission will not be able to assess any new investment projects under the Western Balkans Investment Framework for the entire territory of BiH, with the exception of projects in the field of environmental protection – the EU Delegation said.
They emphasize that the Growth Plan could have a transformative impact on the BiH economy, ensuring numerous benefits of EU membership even before formal accession, while at the same time strengthening integration into the EU single market as BiH’s largest trading partner by far.
– Citizens will directly feel these benefits – they emphasized.
However, the EU Delegation to BiH reiterated that BiH is expected to implement a series of reforms set out in the Reform Programme, which the BiH authorities need to agree on and present in order to fully take advantage of these opportunities.
– Beneficiary governments are provided with financial resources for the implemented reforms, thus enabling a positive cycle of reforms, investments and growth – they added.
They remind that BiH is already bearing the consequences of the failure to adopt the Reform Agenda, and since the European Commission has not received the final and agreed Reform Programme of BiH, a decision has been made to amend the amount originally foreseen for BiH in the Growth Plan for the Western Balkans.
– In July, the European Commission decided to reduce funds for BiH by 10 percent, from EUR 1.085 billion to EUR 976.6 million, a reduction of EUR 108.5 million. On July 17, the BiH authorities were informed that an additional 10 percent reduction would follow if BiH did not submit a finalized Reform Program by September 30, they warned.
They also point out that the funding available under the Growth Plan expires at the end of 2027 and that therefore all reforms under the Growth Plan must be implemented by the specified deadline, which is linked to the expiration of the current EU multiannual financial framework and cannot be changed.
On the other hand, they cite examples of several neighboring countries that have already received funds from the Reform and Growth Instrument and have taken steps such as joining the Single Euro Payments Area (SEPA), which drastically reduces business costs.
With all of the above in mind, the EU Delegation to BiH said that inaction has its price and called on the BiH authorities not to miss the opportunity of almost a billion euros in investments, as well as reforms that will improve the business climate and make progress in harmonization with EU legislation and standards.
