Bosnia and Herzegovina (BiH) is losing more than 200 million BAM, with warnings that it will lose even more millions if the Reform Agenda is not adopted by the ruling authorities by September 30th. This was communicated to us by the European Commission. And this is because the authorities have not submitted an adopted Reform Agenda aligned with the comments of the European Commission. The Council of Ministers of BiH gave no explanation, but many consider the current convocation most responsible for the lost money. Because if that money means nothing to the politicians, it certainly represents a loss for the BiH economy and its citizens.
While neighboring countries are benefiting from European Union (EU) grants, the authorities in BiH seemingly do not need millions. A paradox, given that the country is burdened with debts and lacks serious infrastructure projects. For months, the EU warned the authorities to submit a reform plan, appoint a chief EU negotiator, and adopt laws related to the rule of law. Now, as confirmed, they are being told in a letter:
“If this is not done by September 30th, 2025, the Commission will make an additional reduction of funds by another 10 percent. Please keep this in mind when planning investments within your Reform Agenda,” says Marta Kos, European Commissioner for Enlargement.
A new deadline has been given once again. The ruling authorities say it was expected that we would be left without the money, considering the political relations. The Minister of Foreign Affairs of BiH states that it is even more dangerous that BiH risks falling out of the so-called Growth Plan. He sees the fault in the Council of Ministers and the coordination mechanism.
“We’re wounded, not completely thrown out, but this will definitely affect our economy. A hundred-something million could be used for useful purposes, but maybe this is the last warning to finish our part of the job,” says Elmedin Konakovic, Minister of Foreign Affairs of BiH.
“We hope that now we will understand that people will no longer look the other way and that we will seriously approach solving this,” stated Nermin Niksic, Prime Minister of the Federation of BiH (FBiH).
What the solution is, the public doesn’t know, as there has been no statement from the office of the Chairwoman of the Council of Ministers, Borjana Kristo. And just two weeks ago, we witnessed optimism at the summit in Skopje.
“We also informed them that we unanimously adopted the draft Reform Agenda and the proposal of measures together with all the comments at the session of the Council of Ministers and that we would inform the EU Commission about it during this week,” said Borjana Kristo, Chairwoman of the Council of Ministers of BiH.
This is a slap in the face for the Council of Ministers and the ruling coalition, says Branislav Borenovic, a member of the Joint Commission for EU Integration. He claims they have little information about what is happening, even though they asked the Council for information on the Reform Agenda.
“I have the feeling that everything is happening inside the Council of Ministers and that they know everything, while the public and we, the representatives, absolutely don’t have enough information on what the issue is and why it is happening. Is it again some kind of bargaining among that ruling structure?” says Branislav Borenovic, member of the Joint Commission for EU Integration of the BiH Parliament.
“When they already mention the sharp sword in some other contexts, there really needs to be a European sharp sword to cut this Gordian knot, to go after individuals, to punish and remove them from the political scene because they are the obstacle,” says Safet Keso, SDA representative in the House of Representatives of the BiH Parliament.
Europe’s expectations are that the authorities’ behavior will change after losing part of the funds, say European analysts. There are many culprits, claims Cerimagic.
“Formally, these are domestic institutions – representatives of the entities, cantons, Brcko District, and the Council of Ministers of BiH who had enough time to reach an agreement but didn’t. The real victims are the citizens and the economy,” emphasizes Adi Cerimagic, analyst at the Initiative for European Stability.
One-third of the Growth Plan consists of non-repayable funds, while two-thirds are favorable credit funds for infrastructure projects, such as the construction of roads, schools, and kindergartens.
“The worst part of this story is that the responsible persons, who receive serious salaries and benefits for it, do not feel responsible at all, nor will it affect them financially in any way,” says Zoran Pavlovic, economic analyst.
The public has no choice but to wait and see whether the political situation will turn around. And no matter how much we regret the lost money, this is ultimately part of the bigger picture of BiH’s blocked path to Europe, BHRT writes.
