European Commission reiterates: BiH must adopt laws on HJPC and courts, and appoint chief negotiator

(Patria) - The ninth meeting of the Subcommittee on Economic and Financial Issues and Statistics between the EU and BiH was held today in Sarajevo.

The European Commission reiterated that BiH must take the necessary steps to adopt the negotiation framework and hold the first intergovernmental conference, which includes adopting the laws on the High Judicial and Prosecutorial Council (HJPC) and courts of BiH, and appointing a chief negotiator.

The importance of appointing an IPA coordinator was highlighted at today's meeting.

It was also emphasized that, following the adoption of the Reform Agenda, steps are expected to be taken in implementing reforms, appointing a coordinator, and ratifying the Instrument for Reforms and Growth Agreement and the Loan Agreement.

The European Commission highlighted the resilience of economic activity in BiH, while challenges identified include the burden on the business environment due to the fragmentation of the internal market, good economic governance, the rule of law, the quality of education, and lagging behind in energy transition, etc.

The two delegations exchanged information on the economic situation and plans in BiH and the EU.

The European Union remains BiH's most significant foreign trade partner. In 2025, according to available data, BiH recorded growth in economic activity with a GDP growth rate of 2.1%, foreign trade in goods, and inflation.

According to projections by the Directorate for Economic Planning, the expected GDP growth rate in BiH in 2026 is 2%, and the inflation rate is 4.1%.

The BiH delegation informed that the BiH Fiscal Council adopted the Global Framework of Fiscal Balance and Policies in BiH for the period 2026-2028.

It was highlighted that in 2025, fiscal policy was aimed at preserving fiscal stability in BiH, thanks to strong growth in public revenues, which were nominally 11.3% higher compared to 2024.

The BiH delegation informed about the latest activities of institutions in BiH regarding accession to the Single Euro Payments Area (SEPA), and in relation to relations with international financial institutions, it was emphasized that BiH remains in the category of moderately indebted countries.

The recommendation was reiterated that BiH should continue to progress in aligning with the EU acquis communautaire and the Stabilization and Association Agreement concerning the liberalization of capital and payment movements.

It was stated that the Economic Reform Programme for the period 2026-2028 was adopted and submitted to the European Commission in accordance with deadlines.

The two delegations also discussed public finance control and external audit, as well as the protection of the EU's financial interests and the protection of the euro against counterfeiting.

The EU delegation took note that preparations for conducting an agricultural census are underway, and among the tasks in the area of statistics for BiH authorities are the adoption of a new law on statistics, the adoption of a roadmap for the preparation of a population and housing census, and the preparation of a classification of statistical regions at the NUTS III level.