PSC: Adopt the Budget for Institutions for 2021, Form Governments, Fill Vacant Positions

SARAJEVO, (Patria) - Political Directors of the Peace Implementation Council (PIC) Steering Board met via video link on June 1 and 2, 2021, to discuss the state of implementation of the General Framework Agreement for Peace, which continues to be the foundation for a stable, secure, and prosperous Bosnia and Herzegovina (BiH). The Russian Federation disagrees with today's Communiqué.

The PIC Steering Board reminded all parties of their obligation to fully respect the Peace Agreement, all its annexes, and the decisions of the High Representative.

The Steering Board reaffirmed its unwavering commitment to the territorial integrity and fundamental structure of BiH as a single, sovereign state consisting of two entities. The Steering Board reiterated that entities have no right to secede from BiH and that they legally exist only on the basis of the BiH Constitution. The Steering Board reminded the authorities in BiH that the BiH Constitution is an integral part of the General Framework Agreement for Peace and that the decisions of the Constitutional Court of BiH are final and binding and must be implemented. The Steering Board reaffirmed its full support for the High Representative in ensuring full respect for the General Framework Agreement for Peace in BiH and the implementation of his mandate in accordance with Annex 10 and relevant UN Security Council resolutions, which remains unchanged. The Steering Board underscored that the international community continues to retain the necessary instruments to ensure the implementation of the General Framework Agreement for Peace. It emphasized the need for full implementation of the 5+2 agenda, which remains a condition for the closure of the Office of the High Representative.

At its meeting in June 2020, the PIC Steering Board welcomed the initiative of the BiH Presidency to lead reforms aimed at fulfilling the 14 key priorities from the European Commission's Opinion in order to move forward on BiH's path to EU membership. The citizens of BiH expect their leaders to focus their energy on achieving basic, yet significant, reforms in the economy, rule of law, and electoral process during this year, and on overcoming the situation caused by Covid-19, which is crucial for the well-being of citizens and economic recovery. Despite constant calls to use the current year, as a non-election year, for the implementation and acceleration of agreed reforms in BiH, almost half of 2021 has passed without significant positive achievements.

The PIC Steering Board has continuously called on BiH authorities to reach an agreement on limited constitutional and electoral reform, thereby resolving the judgments of the European Court of Human Rights in the Sejdić/Finci case and related cases concerning the elimination of discrimination. In the electoral reform process, the decisions of the Constitutional Court of BiH concerning elections must be taken into account. The PIC Steering Board welcomed the establishment of an interdepartmental working group that is launching a long-overdue institutional process for comprehensively addressing numerous shortcomings in the electoral framework, so that future elections are freer, fairer, and aligned with EU and international standards. The PIC Steering Board underscored the need for active engagement of all leaders from the entire political spectrum and civil society, as well as the Central Election Commission, to ensure the success of these reforms.

The PIC Steering Board has also continuously called on BiH authorities to implement reforms related to the rule of law and the fight against corruption, which are a key part of the EU accession process and gaining citizens' trust, including the adoption of amendments to the Law on the High Judicial and Prosecutorial Council (HJPC) and the Law on Public Procurement, and a new law on conflict of interest.

However, the PIC Steering Board witnessed that some political leaders have focused on and engaged in divisive and destructive discourse that only distracts from issues of genuine importance and deprives citizens of the opportunity to receive adequate services and prospects for a better future. Such was the case with the pointless rhetoric and activities concerning the so-called "peaceful secession" of BiH, which was the focus of the recently adopted conclusions of the National Assembly of Republika Srpska (RS). The PIC Steering Board called on political leaders in BiH to cease further discussions and activities in this regard. Rhetoric that challenges the existence of the RS entity, advocates for further territorial divisions of the country, or mentions the possibility of war is also destabilizing and unacceptable.

In addition, the PIC Steering Board expressed concern about the continuous glorification of convicted war criminals, denial of judgments for genocide and war crimes, as well as other activities that cause divisions and undermine mutual trust and reconciliation, which are necessary for building a better future for everyone in BiH. The PIC Steering Board supports all efforts by leaders and citizens of BiH to engage in dialogue and concrete steps to promote trust and reconciliation, and calls on all leaders to cease rhetoric and actions that lead to divisions. The PIC Steering Board calls on BiH leaders to jointly honor all victims of the war, both deceased and survivors, as a foundation for a peaceful future.

The PIC Steering Board took note of positive developments, including the implementation of election results in Mostar through the formation of the City Council and the adoption of the budget. The PIC Steering Board met with the mayors of Sarajevo, Banja Luka, and Mostar, and the leadership of the Government and Assembly of Brčko District, and is impressed by their commitment to prioritizing public services, transparent governance, and realizing the potential of their communities through building trust, developing infrastructure, and growing the private sector. The PIC Steering Board cited the progress made in these areas in Brčko District as proof that these goals are achievable in BiH with sufficient commitment and political will.
The PIC Steering Board expressed disappointment with the lack of commitment to reforms that strengthen fiscal transparency and stability, promote a single economic space, and strengthen the local economy, including within the framework of the extended arrangement with the International Monetary Fund (Extended Fund Facility - EFF) requested by BiH. The PIC Steering Board reiterated that a key component of these efforts is to ensure continuous adequate financing and unimpeded functioning of BiH institutions and called for the adoption of the state-level budget for 2021, which will enable BiH institutions to meet needs and fulfill their obligations.

The PIC Steering Board called on BiH authorities - its political and institutional leaders, to address the following priorities without further delay:

 To address the 14 key priorities from the European Commission's Opinion.
 To use 2021, as a non-election year, for implementing limited constitutional and electoral reform, by implementing the judgment in the Sejdić-Finci case and other judgments of the European Court of Human Rights (ECtHR) related to elections that have not yet been implemented, some of them for over a decade. To take into account the decisions of the Constitutional Court of BiH, as well as the recommendations of OSCE/ODIHR, GRECO, and the Venice Commission on electoral integrity in the electoral reform process. To refrain from taking legislative or political steps in the electoral reform process that would hinder the implementation of ECtHR judgments or lead to further divisions.
 To take concrete steps at all political levels for reconciliation in BiH, including holding joint commemorations.
 To work on improving the stability and resilience of the fiscal, economic, and financial sectors, including through reforms proposed within the framework of the extended IMF arrangement. To adopt the state-level budget for 2021.
 To complete the formation of governments and appointments to vacant positions at all levels of government, including judges of the Constitutional Court of FBiH.
 To improve coordination and cooperation between all levels of government in combating the Covid-19 pandemic and mitigating its consequences. To improve vaccination programs and measures to strengthen the health system.
 To strengthen cooperation between all levels of government, ensure sufficient funds, and build a system for managing migration and asylum so that migration and border security are managed as an exclusive state competence. Both entities should share responsibility equally for fulfilling humanitarian obligations regarding the accommodation of migrants.

The PIC Steering Board welcomed the appointment of Mr. Christian Schmidt as the new High Representative and expressed its full support for strengthening stability in BiH by ensuring consistent implementation of the civilian aspects of the General Framework Agreement for Peace. The PIC Steering Board commended the current High Representative, Mr. Valentin Inzko, for the outstanding work he and his team have done for the stability and development of BiH.

The next meeting of the PIC Steering Board will be held on December 7 and 8, 2021.