European Union to BiH politicians: Finalize the Reform Agenda or face further funding cuts

(Patria) - After information was published in the media that BiH has lost 108.5 million euros, or ten percent, from the first tranche of the European Union's Growth Plan, the EU Delegation in BiH issued a statement.

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BiH lost 108.5 million euros due to delays with the Reform Agenda

(Patria) - The European Commission has informed the Council of Ministers that BiH will receive 10 percent less money from the Western Balkans Growth Plan, i.e., 108.5 million euros less, because it has not submitted the final version of the Reform Agenda, Radio Free Europe has learned.

"The European Commission has informed the domestic authorities about a ten percent reduction in the indicative allocations foreseen for BiH within the Western Balkans Growth Plan.

BiH is now eligible for funds worth up to 976.6 million euros instead of 1.085 billion euros," the EU Delegation stated.

They noted that the Reform and Growth Facility is a central element of the Growth Plan, which has been under consideration since 2023.

"This is a performance-based instrument, which provides funds in exchange for the implementation of key reforms in a range of areas, primarily green and digital transition, private sector development, and the rule of law," the Delegation said.

The first step to accessing these funds is for the authorities to submit a list of reforms to the European Commission in the format of a Reform Agenda, for harmonization purposes.

"Unfortunately, despite the political agreement reached at the BiH Council of Ministers on June 27, Bosnia and Herzegovina remains the only country in the region whose authorities have failed to submit a harmonized and finalized draft Reform Agenda to the European Commission.

Following a series of technical discussions with the European Commission, the Reform Agenda is almost ready, but the domestic authorities have not finalized it.

In contrast, Albania, Kosovo, Montenegro, North Macedonia, and Serbia submitted their Agendas by the summer of 2024, and the Commission approved them in October 2024," the EU Delegation in BiH stated.

They warned that the Reform and Growth Facility expires at the end of 2027 and cannot be changed.

As they said, the EU has repeatedly warned the authorities of Bosnia and Herzegovina that time is running out and that the country could face reduced allocations if urgent measures are not taken.

"Bosnia and Herzegovina can still benefit from 976.6 million euros under the Reform and Growth Facility.

This is a significant amount of funds that will have a tangible impact on improvements in transport, energy, and digitalization, for the benefit of all citizens.

The funds reduced from indicative allocations remain available for all six Western Balkan countries, including BiH, and will be redistributed based on satisfactory progress and overall reform results.

The Western Balkans Growth Plan is an important opportunity for the countries of the region to deepen their economic integration with their largest trading partner – the European Union and implement comprehensive reforms that will transform their business climate and attract investments.

Therefore, we call on the authorities in Bosnia and Herzegovina to finalize the Reform Agenda as soon as possible, for the benefit of the citizens," the EU Delegation in BiH announced.

They also noted that the authorities of Bosnia and Herzegovina have been informed that, in the event the final consolidated version of the Reform Agenda is not submitted by September 30, a further ten percent reduction in initial allocations for BiH will be applied.

They emphasized that the European Union continues to invest in projects supporting the European path.

"However, there is also a price for inaction. It is time for political actors in Bosnia and Herzegovina to act to seize the opportunities available to them for the benefit of the citizens," they concluded.