Bosnia and Herzegovina has not fully implemented any of the key 113 reforms to which it committed itself in the Reform Agenda sent to the European Commission.
The authorities have set the deadlines for most of the measures at the end of 2025 or 2026.
Bosnia and Herzegovina has not yet signed the protocol agreements with the EU, which are almost identical for all countries of the Western Balkans, which is why it has not even withdrawn the first 70 million euros of grants.
This calls into question the approach of almost billions of euros intended for the transformation of the energy sector, the modernization of roads and railways or the digitization of services and society in the only European country, apart from Ukraine which is under Russian aggression, which does not have high-speed Internet of the fifth generation (5G). Part of the funding is conditional on progress in the fundamental rights chapter, which includes judicial reform and the fight against corruption in addition to basic democratic rights.
“I sent a letter to the authorities, warning that Bosnia and Herzegovina risks losing hundreds of millions of euros if the necessary reforms are not implemented by December 2026. There will be no extension of this deadline,” said Marta Kos, EU Commissioner for Enlargement, at the end of April.
She announced that in June the intended amount of EUR 976.6 million will be reduced by EUR 373.9 million, if BiH does not start implementing the promised reforms.
Who is obstructing?
The European Commission approved the Reform Agenda of BiH in December last year, and most of the measures are not even in the draft stage. Bosnia and Herzegovina has committed to reform 26 areas by 2027 with a total of 113 measures, elaborated through more than 370 activities.
A key part of the Reform Agenda refers to the strengthening of the judiciary, including new laws on the Court of Bosnia and Herzegovina and the High Judicial and Prosecutorial Council (HJPC), the institution that oversees the work of all judges and prosecutors in the country. These laws are supposed to strengthen the independence of the judiciary, introduce detailed background checks of judges and prosecutors, and reduce political influence on their appointments.
A political agreement on their content has not yet been reached.
“We have resistance both from holders of judicial positions and from holders of political positions. The establishment of stronger mechanisms of responsibility and independence of the judiciary is constantly obstructed, because it is important for the parties in power to maintain control over the judiciary and the ethnic distribution of functions,” she told RSE Ivana Korajlić, director of Transparency International in Bosnia and Herzegovina.
In addition, no new laws on the protection of corruption informants (“whistleblowers”), the law on conflict of interest and the law on public procurement have been adopted.
“There is enormous resistance to the establishment of adequate standards and mechanisms to prevent corruption, because they directly conflict with the interests of those in power. As much as they talk about commitment to EU integration, it is obvious that they are doing the opposite,” Korajlić believes.
Arben Murtezić, a member of the Board of Directors of the European Academy of Law, told RSE that “a perception has been created in the public that the holders of judicial positions have some resistance to reforms and the modernization of regulations and laws.”
“That’s simply not true. You can’t shift responsibility to them, because you know who makes the laws,” said Murtezić for RSE.
Ministers do not talk to parliamentarians
The representatives say that political fragmentation and the lack of consensus between the state and entity levels remain the main obstacle to the implementation of reforms.
Mia Karamehić-Abazović, state representative of the ruling Naša party and member of the parliamentary commission for European integration, said that the parliamentarians have repeatedly demanded that the chairwoman of the Council of Ministers Borjana Krišto and the ministers come before the Parliament to discuss the Reform Agenda.
“Until recently, we didn’t even see the text of the agenda, which they sent to Brussels last year and which we as representatives should implement. After several requests, the Council of Ministers of BiH sent us the text and said that they are not obliged to come to the session to discuss it,” said Karamehić-Abazović.
Nihad Omerović, a representative of the ruling People and Justice party and a member of the parliamentary committee for foreign affairs, said that so far they have not seen even two basic agreements, on the instrument and the loan, needed for the payment of the first tranche.
“The ratification of the agreement should have been completed six months ago. I am afraid that mutual blackmail-political relations and divisions between the SNSD and the HDZ of BiH are not hidden in the background [druge dvije vladajuće stranke] and that it be transferred to the Parliament”, Omerović said.
Representatives of the ruling Alliance of Independent Social Democrats (SNSD) and the Croatian Democratic Union (HDZ) of Bosnia and Herzegovina did not respond to RSE’s calls. The office of the chairman of the BiH Council of Ministers did not respond to RSE’s inquiry on this topic either.
What is the damage to citizens and the economy?
The energy sector is one of the most demanding parts of the Reform Agenda, with a series of obligations towards the EU in the area of electricity, gas and climate policies, as well as government plans in BiH.
BiH has not legally complied with the EU’s Third Energy Package, which includes the liberalization of the electricity and gas markets. No electricity exchange was formed, nor were mechanisms established for the so-called emissions trading (ETS), which is why fines from the EU are expected.
Nihad Harbaš, director of nLogic Advisory and member of the Secretariat of the European Energy Community, says that failure to adopt the law on the regulator, transmission and electricity market in Bosnia and Herzegovina is no longer a political issue, but an “economic and systemic risk”.
“With the entry of the EU into the full application of the CBAM mechanism [porez na uvoz proizvoda s visokim CO2 emisijama]Bosnia and Herzegovina is exposed to additional costs that will inevitably be passed on to citizens and the economy through higher prices for electricity, products and services”, said Harbaš.
What else did the BiH authorities plan?
EU funds are planned for the “digital transformation of BiH”, which includes the introduction of electronic identity, e-signatures and digital public services. The key law on digital identity and services has not been adopted.
Bosnia and Herzegovina has also not adopted a unique strategy for the development of high-speed Internet, and remains the only one in Europe without a fifth generation (5G) mobile network, along with Ukraine, which is under Russian aggression.
In the social sector, the modernization of the employment office and the reform of the social benefits system through the introduction of the so-called social card, a system that would link data on income, property and social benefits for more effective distribution of aid.
Bosnia and Herzegovina does not have a single register with data on tax payments, employment, assets, pensions, healthcare or education. The Federation of Bosnia and Herzegovina has just started drafting its legal framework on the establishment of such a registry, while the RS has not even started the process.
Analysts believe that the success of the Reform Agenda depends not only on the technical harmonization of legislation, but also on the political readiness to implement the laws.
Ivana Korajlić from Transparency International says that “implementation of the reforms, to which all parties in BiH have declaratively committed themselves, would “change the distribution of political and economic power”, and “this is precisely why political actors are doing everything to obstruct their adoption and implementation”.
“Without reforms, BiH remains without access to significant European funds and international aid, while at the same time the financing of energy and infrastructure projects for which capital exists, but cannot be activated without a clear regulatory framework, is being slowed down or impossible,” Nihad Harbaš, a member of the Secretariat of the European Energy Community, director of nLogic Advisory, which also deals with the preparation of projects for EU funds, energy regulation and decarbonization of the industry, told RSE.
Harbaš says that the example of the EU Growth Plan shows the extent of the risks for citizens and the economy.
He reminds that BiH has already lost about 250 million euros of potential EU aid due to delays in reforms, and that with further delay it may be left without a total of 1 billion euros of additional support for investments that could modernize key sectors, reports Radio Sarajevo.
