RS President a problem in EIB report as well: Questioning investments, development, and employment in BiH

In the report of the European Investment Bank (EIB), presented this month, a warning is issued regarding the actions of Milorad Dodik, stating that "political tension between the Federation of BiH and Republika Srpska is damaging business confidence and discouraging small and medium-sized enterprises from long-term investments," writes the Patria News Agency.  

 

"The political relationship between the two entities is problematic," the EIB believes.

"In 2015, Milorad Dodik, the President of Republika Srpska, called on citizens to hold a referendum on the powers of the Constitutional Court of Bosnia and Herzegovina over Republika Srpska," the EIB report states.

"Dodik further threatened to hold an independence referendum in 2018 if issues, including the jurisdiction of the Constitutional Court, were not resolved in favor of Republika Srpska," the EIB report says.

"The two entities often disagree on laws, making it difficult to pass new legal solutions," the EIB believes.

This is precisely why local businessmen and foreign investors are cautious about long-term investments in the country, fearing the long-term sustainability of the entity duality structure. 

"Despite all these problems, beneficial reforms are being implemented from time to time, and the business climate is improving overall, although not at an optimal pace."

Therefore, Dodik, who speaks of referendums, divisions, and wars, all in the name of upcoming local elections, is jeopardizing even the most basic openness of the country to investments, and thus to development and employment.   

This is why both opposing sides have readily accepted a one billion KM loan from the IMF. This loan will be repaid by their children and their children's children.