FBiH Government Adopts Economic Reform Program for 2024-2026.

(Patria) - The Government of the Federation of BiH considered at today's emergency session in Sarajevo the verbally submitted information by the Federal Ministry of Internal Affairs (FMUP) and the Federal Police Administration (FUP) on the security situation in FBiH.

The Government took note of this information, and by a adopted conclusion, tasked the FMUP and FUP to prepare written information on the security situation in the Federation of BiH for the next session, which the Government will forward to the Parliament of the Federation of BiH.

Also, the Government requests the FMUP and FUP to engage maximally, in accordance with their competencies, in further security stabilization in the area of the Federation of BiH, as well as Bosnia and Herzegovina.

The Government requests the FMUP and FUP to further intensify cooperation and coordination with cantonal ministries of internal affairs and cantonal police administrations to, each within their jurisdiction, raise the level of citizen security, and work on preventing, detecting, and adequately prosecuting criminal offenses.

The conclusion specified that the Government remains committed to diligently continuing to work on fulfilling our country's obligations after receiving the green light for the opening of accession negotiations for EU membership.

The Government also concludes that the security situation in the Federation of BiH is stable, and that it will do everything through competent authorities to keep it that way. This conclusion enters into force on the day of its adoption.

Economic Reform Program Adopted

At the proposal of the Federal Development Programming Agency, the Government of the Federation of BiH today adopted the Economic Reform Program of the Federation of Bosnia and Herzegovina for the period 2024-2026.

The adopted program will be submitted to the Directorate for Economic Planning of BiH, as the coordinating institution at the BiH level, which is responsible for drafting the Economic Reform Program of Bosnia and Herzegovina for the period 2024-2026.

The Federal Development Programming Agency is tasked with establishing a network of coordinators and deputy coordinators within the responsible institutions, according to the needs and requirements of the EU Commission for the next period.

The Economic Reform Program of FBiH 2024-2026, stated in the introduction, follows the structure of the document at the state level and contains chapters: overall framework and policy objectives, macroeconomic framework, fiscal framework, and priorities of structural reforms, as well as annexes with tabular overviews.

It was emphasized that all chapters of the Program, in coordination and consultation with the relevant ministries, were prepared in accordance with the requirements of the European Commission and the Guidelines for the Preparation of the Program.

The key challenge for BiH, and thus for the Federation of BiH, is stated in the Program, is increasing productivity and economic growth, i.e., removing obstacles that prevent the country from utilizing its potential.

To overcome these challenges, in addition to macro-fiscal policies, sectoral measures and structural reforms are also necessary.

The key priority of the FBiH Government in this mandate is to ensure a strong and fair economy, which requires stable public finances, and special attention will be paid to solving problems related to the demographic future of the Federation of BiH.

In order to first identify and assess potential consequences related to population development, and then proceed to eliminate or mitigate negative implications, the FBiH Government has begun developing strategies and policies related to this area.

The structural reforms listed in the Economic Reform Program relate to the areas of competitiveness, resilience and sustainability, and human capital and social policy.

Structural reforms in the area of competitiveness include improving the competitiveness of the economy through support for technological development and improving business conditions through reform measures supporting the technological development of the economy and improving business conditions, as well as reforming the performance of public enterprises.

The first structural reform in the area of resilience and sustainability is the green transition through energy transition reform measures while ensuring supply security, market reforms, and increasing efficiency and the share of renewable energy sources, as well as establishing conditions for the transition to a circular economy.

The second structural reform in this area is creating prerequisites for full digitalization.

In the area of human capital and social policy, structural reforms include increasing employment by improving the alignment of education with the development of practical knowledge and skills in the labor market, and improving the quality and efficiency of institutional mechanisms for providing social protection and healthcare services.

The last structural reform, in accordance with the Economic Reform Program, will be achieved through reform measures that include an improved social and child protection system by strengthening institutional mechanisms and the legal framework, and by improving the quality of healthcare in BiH.

Regarding the financing of structural reforms, the Program states that in 2024, 89 percent of total costs will be financed from the FBiH budget, two percent from IPA funds, seven percent from grants, and two percent from project loans.

In 2025, 76 percent of total costs will be financed from the FBiH budget, six percent from grants, and 18 percent from project loans, while in 2026, 82 percent of total costs will be financed from the FBiH budget, four percent from grants, and 14 percent from project loans.