In our country, old problems persist, serving as a reminder of missed opportunities. Bosnia and Herzegovina could have financed new roads, hospitals, schools, digitalization, and energy projects using funds from the European Union’s Growth Plan for the Western Balkans. However, due to a lack of policy alignment, our country remains the only one that has not received a single euro from this package. Given that the funds are available only until the end of next year – and considering that the government in Bosnia and Herzegovina has yet to be formed—time is not on our side.
Millions of Euros on Hold
Less than two months remain to implement the necessary reforms; otherwise, BiH risks losing 373 million euros from the Growth Plan. Penalties are already being applied, reducing the original allocation of 1.025 billion euros to 917 million euros. Still, this remains a significant sum – one tied to meeting conditions that would ultimately benefit the citizens of this country, rather than the European Union itself.
“We have explicitly asked the authorities to implement the Reform Agenda and the Growth Plan. The European Union remains committed to supporting this country in carrying out the reforms required to unlock these funds. Key agreements must be ratified, and reforms must be implemented,” stated Adebayo Babajide, Deputy Head of the European Union Delegation to Bosnia and Herzegovina.
The requirements include ratifying agreements, adopting legislation concerning the High Judicial and Prosecutorial Council (HJPC) and the Courts of BiH, and appointing a chief negotiator. Although few conditions remain, we have been waiting for their adoption since December of last year. We are the only state that has not even submitted a list of infrastructure projects it would like to finance using these funds.
Kanlić: Additional funds also at risk
In addition to road infrastructure, the list of projects should include the renovation of public institutions, schools, and hospitals, as well as other projects that could be proposed by local levels of government, explains Edo Kanlić, Advocacy and Public Policy Manager at Transparency International in Bosnia and Herzegovina.
“Beyond road infrastructure, this list should also include projects for the renovation of public institutions, schools, hospitals, and the like. These represent the needs of local communities, and such projects could primarily be put forward by lower levels of government – namely, municipalities and cantons. If we fail to take action on implementing the reforms outlined in the Reform Agenda by June 2027, we stand to lose an additional 96 million euros,” warns Kanlić.
Although a list of projects is not yet available, the reform agenda outlines four broad areas for funding: the green and digital transition; private sector and business environment development; education, the labor market, and the social protection system; and a fourth area – so-called “fundamental issues”- namely, the rule of law, the functioning of the judiciary and democratic institutions, and the fight against corruption and organized crime. However, everything remains on hold until a new government is formed.
Cenić: We will lose that money
Economic expert Svetlana Cenić does not expect Bosnia and Herzegovina to fulfill its remaining obligations or to access the funds available under the Growth Plan.
“I don’t expect anything. Unfortunately, we will lose that money. I would say there is a 90 percent chance that this will not happen. Only a miracle could change things. We haven’t accomplished anything – economically, politically, or institutionally,” Cenić assesses.
According to those consulted, any unused funds from the Growth Plan will very likely be redirected to other Western Balkan countries. This is because the European Union’s principle is clear: the money goes to those who deliver reforms and demonstrate that they are worth investing in.
