What the European Commission's Progress Report on BiH Says

The European Commission concluded that BiH is back on the reform path and has begun addressing the remaining priorities on the road to EU accession, as demonstrated by the adoption of the Reform Agenda in July, according to the European Commission's report on the progress of candidate and potential candidate countries presented today in Brussels before the European Parliament's Committee on Foreign Affairs, reports the BiH news agency Patria.

Key Findings of the 2015 Report for Bosnia and Herzegovina

The report on Bosnia and Herzegovina is part of the 2015 enlargement package adopted today by the European Commission. According to the Commission's findings, Bosnia and Herzegovina has returned to the reform path and begun addressing the remaining priorities on the road to European Union accession, as shown by the adoption of the Reform Agenda in July. For the country to make further progress on its European path, meaningful progress in implementing the Reform Agenda is necessary as a condition for the European Union to consider Bosnia and Herzegovina's membership application. The political consensus on the country's European future, expressed in the Joint Statement in February this year, needs to be further translated into the adoption and harmonized implementation of necessary reforms throughout the country. Furthermore, for the country to concretely address the next steps on its path to European integration, strengthening public administration, improving cooperation at all levels, and establishing an effective coordination mechanism for EU-related issues are required. Results are expected from the domestic authorities on key remaining priorities in the judiciary in line with the recommendations of the Structured Dialogue on Justice. Bosnia and Herzegovina is also expected to positively fulfill the conditions for the implementation of the Stabilization and Association Agreement, including adjustments following Croatia's accession to the European Union.

Political Criteria

According to the assessment, the General Elections held in October 2014 were conducted effectively and regularly, in a competitive environment. The Parliamentary Assembly of Bosnia and Herzegovina has begun its work and legislative adoption according to plan. However, cooperation between legislative bodies at the state, entity, and Brčko District levels still needs to be improved. Institutions of Bosnia and Herzegovina have made some progress in addressing open reform priorities, especially with the adoption of the Reform Agenda and the commencement of activities for its implementation. However, closer cooperation and coordination among all levels of government need to be established. The Constitution has established a complex institutional arrangement that remains inefficient and subject to various interpretations. Furthermore, the Constitution is still in contradiction with the European Convention on Human Rights, as stated in the Sejdić-Finci ruling. The country is in the early stages of public administration reform implementation.

Bosnia and Herzegovina has completed some preparations regarding the consolidation of a functional judicial system. Following the adoption of the Justice Sector Reform Strategy for the period 2014-2018, all activities related to its implementation need to be initiated, including measures to improve the independence and efficiency of the judiciary. Regarding the fight against corruption, although a certain level of preparation has been achieved, the legal and institutional framework remains insufficiently strong and adequate, while the related political commitment and adopted strategy are yet to materialize into concrete results. In terms of combating organized crime, coordination and cooperation among all institutions across the country need further improvement. Human rights and minority protection are in the early stages of development in Bosnia and Herzegovina. Significant improvements to the legal and institutional framework for respecting human rights are needed, in addition to the effective implementation of adopted regulations, particularly regarding aspects of combating discrimination. Lesbian, gay, bisexual, transgender, and intersex communities continue to be exposed to threats and attacks. Certain steps have been taken regarding the registration and housing of the Roma minority, but activities in the areas of healthcare, education, and employment have been limited. Conditions for exercising freedom of expression have deteriorated.

Economic Criteria

Bosnia and Herzegovina is in the early stages of developing a functional market economy, although some progress has been made. However, difficult labor market conditions remain unchanged, with increasing external balance imbalances and public finance deficits, no access to international capital markets, and poor public finance quality. The significant presence of the state in the economy and persistent and significant weaknesses in the business environment, despite some efforts, continue to negatively affect private sector development and weaken economic growth potential. The unemployment rate is high, especially among young people. A broad consensus has been reached on the urgent and much-needed structural economic reforms from the Reform Agenda [which is also reflected in the Council's specific recommendations for Bosnia and Herzegovina]. Authorities need to demonstrate strong reform commitment by further improving policy coordination and implementing structural measures in economic governance. Bosnia and Herzegovina is in the early stages of developing the capacity to cope with competitive pressures and market forces within the Union. The country needs to pay particular attention to developing a more strategic approach in addressing shortcomings in the training and education system, simplifying complex procedures, and developing a transport strategy, as well as an energy sector strategy.

European Union Legislation

Bosnia and Herzegovina is in the early stages regarding the overall alignment with the European Union acquis communautaire. Good preparation has been made in the areas of intellectual, industrial, and commercial property, along with a moderate level of preparedness in customs and tax matters. There is also a certain degree of preparation concerning public procurement and the internal market. Although the country is only in the early stages in the transport sector, the adoption of the Transport Policy in July represents a positive step forward towards realizing benefits within the country from the Connectivity Agenda. However, significant efforts are needed in most policy areas for the country to further align with the EU acquis, including financial control, as well as statistics where significant steps are needed to address existing priorities. In this regard, activities to process the results of the 2013 Census need to be completed and the results published. Further continuous efforts are also needed, particularly in the areas of competitiveness, industry and SMEs, agriculture, environment and climate change, energy, information society and media, as well as justice, freedom, and security.

Key Dates

1999: The European Union proposed a new Stabilization and Association Process for Southeast European countries,

June 2000: According to the European Council, all countries in the Stabilization and Association Process are potential candidates for EU membership,

June 2003: Thessaloniki Summit; the European Union perspective for the Western Balkans was confirmed,

June 2008: Signing of the SAA and the Interim Agreement on trade and trade-related matters,

December 2010: Visa-free regime for the Schengen area for citizens of Bosnia and Herzegovina,

June 2011: Launch of the Structured Dialogue on Justice aimed at further consolidating the judicial system in Bosnia and Herzegovina,

September 2011: Strengthening the EU's role in Bosnia and Herzegovina following the separation of the mandate of the European Union Special Representative from the Office of the High Representative,

June 2012: Launch of the High-Level Dialogue on the Accession Process to meet the EU's requirements related to accession,

June 2015: Entry into force of the Stabilization and Association Agreement.