European Union calls on BiH to return to the path of European integration

Representatives of the European Commission (Commission) on behalf of the European Union and Bosnia and Herzegovina (BiH) met on September 25 and 26, 2014 in Sarajevo at the 7th meeting of the Interim Committee within the Interim Agreement (IA) and the Stabilization and Association Agreement (SAA) between the European Union and BiH. The meeting was chaired by Nevenka Savić, Director of the Directorate for European Integration of BiH, and co-chaired by Jean-Eric Paquet, Director for the Western Balkans at the European Commission, it was announced by the EU Delegation to BiH, reports the BiH news agency Patria.

The EU Delegation recalled the Council conclusions on the need for BiH to urgently implement the judgment of the European Court of Human Rights in the case of "Sejdić-Finci". The Commission expressed regret that it had to suspend its continuous efforts to help find a solution due to a lack of willingness to compromise.

Both delegations agreed that it is necessary to establish an effective and efficient coordination mechanism for EU issues, which is essential for successful interaction with the EU and absorption of EU funds under the Instrument for Pre-Accession Assistance (IPA II).

The EU Delegation expressed disappointment over the stalemate in negotiations regarding the adaptation of the SAA/IA Protocol between the EU and BiH concerning Croatia's accession, which relates to traditional trade between BiH and Croatia. The Commission recalled its proposal not to extend autonomous trade measures for BiH from 2016 if an agreement is not reached by then.

The BiH delegation reiterated its position confirmed in the Council of Ministers and the Presidency of BiH, and expressed disappointment with the Commission's proposal not to extend Autonomous Trade Measures from 2016 if an agreement is not reached. The BiH delegation reiterated its commitment to actively participate in discussions aimed at finding a mutually acceptable solution as soon as conditions are created for it.

Both delegations agreed that BiH should fully implement legislation in the field of human rights and adequately address human rights violations, such as hate speech and hate crimes directed towards members of the LGBTI community. The EU Delegation emphasized the importance of freedom of expression and strengthening media freedom.

The EU Delegation is satisfied with the progress regarding the housing needs and civil registration of Roma, and welcomed BiH's current presidency of the Roma Decade.

Both delegations agreed to continue positive work within the Structured Dialogue on Justice and other rule of law issues, with a particular emphasis on the anti-corruption policy and anti-discrimination legislation.

The BiH delegation presented updated data on measures implemented by authorities in BiH to prevent abuse of the visa-free regime and on visa-related benchmarks that still require action. In this regard, certain positive elements were noted (e.g., in the area of border security and asylum). The Commission emphasized that BiH authorities should continue to implement systematic measures to combat the negative phenomenon of manifestly unfounded asylum applications in EU member states and Schengen-associated countries.

The BiH delegation reported on the recent adoption of the Fiscal Policy Framework 2015-2017.

The EU Delegation welcomed the broad social support for the "Growth and Employment Pact," which addresses serious structural economic problems in BiH and expressed its expectation that, following the October elections, the proposed reforms will be urgently initiated at the relevant levels of authority in BiH.

The EU Delegation praised the smooth completion of the enumeration phase in the census of population, households, and dwellings in BiH in October 2013 and called on BiH to complete the data processing phase in accordance with the agreed timeline. It called on BiH to find a solution regarding the legal framework for the agricultural census, which should be conducted soon.

The EU Delegation welcomed the fact that BiH has taken into account certain concerns of the Commission regarding the amended Excise Law, but emphasized that the definition of independent small breweries benefiting from lower excise rates is not in line with the EU acquis and represents a potential trade barrier. It welcomed the introduction of excise duties on cut tobacco.

The EU Delegation expressed regret that insufficient progress has been made in the phytosanitary sector to allow the export of milk and dairy products to the EU. Continuous deficiencies identified by the European Commission's Food and Veterinary Office in the areas of veterinary and food safety, relating to both legislation and administrative capacities, need to be urgently addressed.
 
Regarding the Neum corridor, the Commission called on BiH to lift the instructions on systematic customs controls at the borders with Croatia and to find appropriate solutions together with Croatia.

The BiH delegation reiterated its position that the current instruction does not represent an obstacle to unimpeded passage, given that only data for registering goods entering BiH is collected. The BiH delegation is committed to continuing discussions on this issue with the Republic of Croatia.

The EU Delegation appreciates BiH's progress in the area of protection of intellectual, industrial, and commercial property rights and called on BiH to intensify efforts in enforcing these rights.

The BiH delegation reported on efforts in the area of state aid and anti-trust legislation. The Commission called on the competent authorities to provide adequate resources, especially for the Council for State Aid, which lacks financial resources.

The delegations exchanged views on the energy market situation in BiH and related legal and administrative initiatives. The Commission welcomed BiH's success in reactivating the electricity transmission company Elektroprenos (TRANSCO). However, the distribution of net income exceeding KM 100 million clearly violates the agreement with the Commission reached at a meeting in early 2014. The Commission also called on BiH to respect its obligations under the Energy Community Treaty, especially in the gas sector where serious and continuous breaches of obligations have been observed.

Regarding the South Stream, the EU Delegation emphasized that BiH, as a signatory to the Energy Community Treaty, is obliged to fully align the proposed intergovernmental agreement with the Russian Federation with the current EU legislation.

The Commission presented the status of the adoption of the Indicative Strategic Document and the Annual Action Programme for 2014. The Commission reminded BiH that establishing an effective cooperation mechanism on EU issues is also important for IPA.
Both sides agreed on a plan for the next seventh cycle of subcommittee meetings, which is an important element in maintaining close dialogue.