EU Memo Progress Report Bosnia and Herzegovina 2012
EU Memo Progress Report Bosnia and Herzegovina 2012
EU Memo Progress Report Bosnia and Herzegovina 2012
MEMO
Brussels, 10 October 2012
Political criteria
Bosnia and Herzegovina has made limited progress in addressing the political criteria for membership in the EU. A High Level Dialogue on the Accession Process (HLDAP) was launched in Brussels in June to address EU accession requirements. The need for an effective coordination mechanism on EU matters remains to be addressed as a matter of priority to enable the country to speak with one voice on EU matters and make an effective use of the EU's pre-accession assistance. The first timeline [31 August] agreed by all participants at the 27 June HLDAP was not met. The European Court of Human Rights decision in the Sejdic-Finci case about compliance of the Constitution with the European Convention on Human Rights needs to be implemented without further delays. After the general elections of October 2010, a State-level government was established in February 2012. The governments at State level and in the Federation started being reshuffled but political disputes and legal challenges make the outcome uncertain. The Parliamentary Assembly has made some progress initially by adopting EU-related legislation, in particular by adopting the State Aid Law and the Law on Household and Population Census. But their implementation is outstanding. The establishment of the State Aid Council, compliance with EU principles on public undertakings and a comprehensive State Aid Inventory remain to be achieved to comply with obligations under the agreements with the EU. Strengthening the functioning and coordination of institutions at all levels remains an issue to be addressed as a matter of priority.
MEMO/12/764
The implementation of the Public Administration Reform Strategy continued, but coordination between the various administrations at all levels remains weak and public administration reform lacks the necessary political support. The reduction of funding for the activities of the Office of the Ombudsman impacted negatively on its effectiveness. The need for a comprehensive reform was recognised within the framework of the Structured Dialogue on Justice, launched in June 2011. Progress has been achieved in the area of judicial system reform, including in the implementation of the justice sector reform strategy and of the national war crimes strategy. However, political attacks continued to affect the independence of the judiciary. Bosnia and Herzegovina has made limited progress in tackling corruption, which remains a serious problem and is prevalent in many areas throughout the public and private sector. Significant progress was made with regard to the Sarajevo Declaration Process on refugees and displaced persons. On the other hand, despite some progress in implementing the Roma Strategy, the Roma minority continues to face very difficult living conditions and discrimination. Political pressure on media and the polarisation of media along political and ethnic lines continues. Attempts to undermine the independence of the Communication Regulatory Agency and of the public service broadcasters have increased. Little progress was done to make schools more inclusive. In view of Croatia's EU accession in July 2013, border, trade and transit related issues remain to be addressed as a matter of urgency.
Economic criteria
Bosnia and Herzegovina has made little further progress towards a functioning market economy. Considerable further reform efforts need to be pursued to enable the country to cope over the long-term with the competitive pressures and market forces within the Union. The economic recovery of Bosnia and Herzegovina stalled in 2012 due to the worsened external environment. Unemployment remained at very high levels. The consensus on economic and fiscal policy essentials has weakened and hampered progress in reforms at country level. A new Stand-by programme of the International Monetary Fund was agreed in September. However, the commitment to structural reforms and sound public finances remained weak and the quality of public finances remained low. The business environment continues to be affected by administrative inefficiencies, unreliable contract enforcement and a weak rule of law. Planned privatisation, restructuring of public enterprises and the liberalisation of network industries did not move forward for the fourth consecutive year. Substantial efforts remain necessary in order to achieve a single economic space.
EU Legislation
Some progress has been made in aligning the country's legislation, policies and capacity with European standards in areas such as free movement of goods, competition/State aid, intellectual property, research, as well as a number of justice, freedom and securityrelated matters Progress remains insufficient in other areas, such as free movement of persons and services, customs and taxation, public procurement, employment and social policies, education, culture, industry and SMEs, agriculture and fisheries, food safety, veterinary and phytosanitary sectors, environment, transport, energy, information society, financial control and statistics.