BOSNIA-HERZEGOVINA & THE ROAD TO
EUROPEAN INTEGRATION Branislav Borenović
This report, published on June 14, 2016, aims to describe the latest developments in Bosnia-Herzegovina’s EU-integration and reform process. Back on the reform track, as described in the 2015 progress report by the European Commission1, an important focus is now to strengthen cooperation between the political entities in a country with complex institutional architecture. The main objective for Bosnia-Herzegovina is to become an EU candidate country by the end of 2017. Progress in the upcoming year will send an important signal of the transformative power of the EU in times of increased populism and instability around the continent.
1
Bosnia and Herzegovina 2015 report, European Commission, Brussels, November 2015 Š Jarl Hjalmarson Foundation 2016
BOSNIA-HERZEGOVINA – A BACKGROUND The disintegration of Yugoslavia resulted in an armed conflict in 1992 in Bosnia-Herzegovina. In the wake of the Dayton Agreement, signed in December 1995, a peace process was initiated which eventually brought the conflict among the ethnic groups to an end, while the country retained its national borders. A
multi-ethnic,
democratically elected was
government formed
with
responsibility
for
foreign policy as well as
economic
fiscal
and affairs.
Domestic policy is set on a lower level, with two governing entities, the Federation of Bosnia-Herzegovina dominated by Bosniaks and Croats, and the Serb dominated Republika Srpska. To guarantee the security in the country, former peacekeeping missions were replaced by the EU force EUFOR Althea in 2004.
June 1, 2015, the EU stabilization and association agreement (SAA) with Bosnia-Herzegovina entered into force. February 15, 2016, the country formally applied for EU-membership. Political system The Presidency of Bosnia-Herzegovina rotates among three members of the Presidential Council – one Serb, one Croat, and one Bosniak – each serving as Chairman of the Presidency for eight-month terms within their four-year mandate as member. The bicameral Parliamentary Assembly consists of the House of Peoples with 15 seats (5 Bosniak, 5 Croat, 5 Serb members designated by the Federation's House of Peoples and the Republika Srpska's National Assembly to serve four-year terms); and the House of Representatives with 42 seats (28 seats allocated for the Federation of Bosnia-Herzegovina and 14 seats for the Republika Srpska; members elected by popular vote on the basis of proportional representation to serve four year terms). The latest national elections were held on October 12, 2014. The Office of the High Representative (OHR) has great political influence. The institution, which was created by means of the Dayton Agreement and was first held by Carl Bildt, has played a critical role in the country. The goal is to dismantle the
institution, but in the current situation there is no forecast of when this can be done. Today, the OHR has a supervisory role, focusing on local ownership. Population: 3,87 million Area: 51 197 km² Currency: Convertible mark (BAM) (pegged to the euro, 1 EUR = 1.95 BAM) GDP (PPP): $ 39,5 billion (estimate 2015) GDP per capita (PPP): $ 10 200 (estimate 2015) Rate of growth: 2,1 percent (estimate 2015) Presidential Council: Bakir Izetbegović (SDA, Bosniak) Mladen Ivanić (PDP, Serb) Dragan Čović (HDZ-BiH, Croat) Chairman of the council of ministers: Denis Zvizdić (SDA, Bosniak)
The
complex institutional
arrangements rests upon the Dayton Agreement and aims to meet the requirements of the three groups, but risk to block necessary reforms. One reform waiting is in accordance with the so called Sejdic-Finci case. In a
ruling by the
European Court of Justice in 2009 the present constitution discriminates smaller ethnic groups since the Presidency troika is reserved for Bosniaks, Croats and Serbs. However, one might argue that the Sejdic-Finci case is only a small part of the reforms needed in order to replace the Dayton Agreement, and the EU has a major role to play when it comes to press for the implementation of reforms.
Economy Official unemployment rates are high, around 44 percent. The official youth unemployment rate is the highest in the world, at 62.8 percent. The economy of BosniaHerzegovina
relies
heavily on the export of metals, energy, textiles and furniture as well as on
remittances
and
foreign aid. Imports are mainly machinery and equipment,
chemicals,
fuels
foodstuffs.
and
Foreign banks, primarily from Austria and Italy, now control most of the banking
sector.
convertible
The mark
(BAM) – the national
Industrial production growth rate: 2,6 % (estimate 2015) Industries: steel, coal, iron ore, lead, zinc, manganese, bauxite, aluminum, motor vehicle assembly, textiles, tobacco products, wooden furniture, ammunition, domestic appliances, oil refining Agriculture - products: wheat, corn, fruits, vegetables; livestock Exports: $ 3.942 billion (estimate 2015) Exports - commodities: metals, clothing, wood products Exports - partners: Slovenia 16.4%, Italy 16.1%, Germany 12.8%, Austria 12.3%, Croatia 12% (estimate 2014) Imports: $ 8.784 billion (estimate 2015) Imports - commodities: machinery and equipment, chemicals, fuels, foodstuffs Imports - partners: Croatia 20.2%, Germany 12.6%, Slovenia 12.2%, Italy 9.8%, Russia 6.8%, Austria 5.7%, Hungary 5% (estimate 2014)
currency introduced in 1998 – is pegged to the euro, and confidence in the currency and the banking sector has remained stable.
THE EUROPEAN INTEGRATION PROCESS For Bosnia-Herzegovina, the most important foreign policy priority is to gain membership in the European Union. The EU perspective provides strong incentive to accelerate democratic, political, economic and social reforms. In accordance with the decision of the Presidency of BosniaHerzegovina, its Chairman submitted the application for EU membership to the Minister of Foreign Affairs of the Netherlands, Mr. Koenders, representing the Presidency of the Council of the European Union, on February, 15, 2016, in Brussels. The aim is now for Bosnia-Herzegovina to continue the reform efforts in order for the Council to favourably consider the application and to forward it to the European Commission for the Opinion, which would result in the Commission sending the Questionnaire to Bosnia-Herzegovina. There is today a strong commitment in the country to maintain a positive momentum for the reform processes and the main objective is to become an EU candidate country by the end of 2017. At its plenary session on April 13-14, the European Parliament adopted its resolution on the Commission’s 2015 progress
The Acquis is the body of rights and obligations binding on all member states. Adopting and implementing the acquis are the basis of the accession negotiations.
report,
welcoming
the
submission of the membership application and calling on the Council
to
application at
examine the
the
earliest
opportunity and to forward it without delay to the Commission in order to start the preparation of the acquis. The preparations in Bosnia-Herzegovina for the questionnaire have already begun. The Council of Ministers adopted plans for preparatory activities on its session April 4, 2016, for the delivery of the answers of the country’s institutions. A number of conclusions were also adopted in relation to the activities to be undertaken by the Directorate for European Integration in coordination with the competent institutions for delivery of the answers. The 2015 progress report notes how Bosnia-Herzegovina is back on the reform path and it recognizes the progress achieved. Based on the report, the key goals are now for the country to further reach progress in the stabilization and association process with the adoption of an efficient coordination mechanism between entities and institutions, the adaptation of the Stabilisation and Association Agreement (SAA) by taking
into account the EU accession of Croatia, a Public Administration Reform and a Judicial Reform in accordance with recommendations within the Structured Dialogue on Justice. The Stabilisation and Association Agreement (SAA) is the framework for relations between the EU and the Western Balkan countries with the aim of eventual EU membership. It is the basis for implementation of the accession process. The Structured Dialogue on Justice is an EU mechanism aiming to advance relations on rule of law with potential candidate countries. It assists Bosnia-Herzegovina to consolidate an independent, effective, efficient and professional judicial system.
Coordination Mechanism and Stabilization and Association Agreement Bosnia-Herzegovina has made progress on meeting two key conditions, the establishment of an effective Coordination Mechanism and the adaptation of the Stabilization and Association Agreement (SAA). The Council of Ministers of Bosnia-Herzegovina adopted a Coordination Mechanism for the European integration process
on January 26, 20162. In order to fully agree on the Coordination Mechanism, meetings3 were held between the Chairman of the Council of the Ministers of BosniaHerzegovina and the Prime Ministers of Republika Srpska and the Federation of Bosnia-Herzegovina. A final agreement of the Coordination Mechanism is expected to be reached soon. As for the adaptation of the SAA, the Presidency of BosniaHerzegovina adopted on its February 10, 2016, session a decision on starting procedure for negotiations in order to conclude the Protocol to the SAA. Three official negotiation meetings between Bosnia-Herzegovina and the European Commission have been held in order to reach an agreement4. The country’s goal is to conclude the Protocol on the adaptation of the SAA as soon as possible, a condition for withdrawing the suspension of the autonomous trade measures for BosniaHerzegovina5.
Published in the “Official Gazette” of Bosnia-Herzegovina on February 9, 2016 3 On March 2 and May 2, 2016 4 On February 16 in Sarajevo and on March 14 and April 28, 2016 in Brussels 5 The prolongation of the autonomous trade measures are conditioned on Bosnia-Herzegovina accepting the adaptation of the SAA. 2
Cooperation on EU-integration between the entities January 26, 2016, a mechanism of cooperation on EUintegration between the different parliaments in BosniaHerzegovina was signed in Sarajevo by their respective representatives. This will enable more efficient work in the legislative bodies on EU matters. The signing ceremony was part of the final conference of the EU-funded Twinning project Enhancing the role of Parliaments in Bosnia-Herzegovina in the EU Integration context. A Parliamentary Forum on European Integration has also been established, consisting of the Joint Commission for European Integration of the Parliament of Bosnia-Herzegovina and the Committees for European Integration in the legislative bodies in Republika Srpska, Federation of Bosnia-Herzegovina and the Brcko District. The Forum has been working successfully for several years in exchanging experience in the legislative harmonizing process as well as in parliamentary monitoring of the
EU
integration
process and the usage of the instrument for preaccession (IPA) funds.
assistance
The Instrument for Pre-accession Assistance (IPA) is the means by which the EU supports reforms by financial and technical assistance in candidate or potential candidate countries, throughout their accession process.
Reform Agenda In order to implement comprehensive socio-economic reforms in the stabilization and association process, all levels of government in Bosnia-Herzegovina adopted a comprehensive set of social, economic and judicial reforms in July 2015 The Reform Agenda of Bosnia-Herzegovina for the period 20152018. In October 2015, the Action Plan for its implementation was adopted. This means that Bosnia-Herzegovina has officially started with the implementation of major reforms in all entities. This represents an important step for the credible implementation of measures to which the leaders of the country were committed, according the conclusions of the Council of the EU for Foreign Affairs on October 12, 2015. Significant progress in the implementation of the Reform Agenda will be needed so that the EU could consider the request for membership. In the first six months, at the state level, the Council of Ministers has implemented 17 out of 33 measures. Altogether, the state level and the entity governments have so far implemented one third of the Reform Agenda. The Council of Ministers of Bosnia-Herzegovina, at its February 9, 2016, session endorsed an Action Plan for the implementation of the priorities of the progress report. The implementation will be incorporated into the Programme of
Work of the Council of Ministers, (as well as recommendations which refer to lower levels of authorities in the country). It is important to emphasize that the connections of these priorities with already existing action plans for the implementation of the Reform Agenda and of the National Economic Reform Programme for 2016-2018 have been determined, where possible. Implementation of the priorities will be reported to the European Commission in the form of written contributions during the preparation of their 2016 progress report on BosniaHerzegovina6. Preparation of the Strategy for Public Administration Reform, which is among the key objectives of the Reform Agenda is ongoing. The work carried out by the Working Group in charge of drafting the revised Law on Courts of Bosnia-Herzegovina has been evaluated by the European Commission as constructive. This Draft Law will serve as a basis for further work and negotiations carried out within the Structured Dialogue on Justice, in order to reach agreement on the reform of the state level judiciary in Bosnia and Herzegovina. The sixth meeting of ministers of justice, within the framework of the Structured Dialogue on Justice, was held on March 5, 2016.
6
In April and in August, 2016
Census – a key challenge A key political challenge today conserns the publishing of the results from the census conducted in October 2013. Representatives from the different entities have not been able to agree on how to count non-resident citizens. The preparations are ongoing and the Council of Ministers at its March 10, 2016, session urged the competent statistics institutions in the country to take additional efforts and agree on the publication of the results, in compliance with the defined deadline. The latest about the work, from mid-May, 2016, is that the Bosnia-Herzegovina Statistical Agency adopted a decision on a single data processing program for the 2013 census. The decion was adopted without the support of the deputy director nor by the Statistical Agency from Republika Srpska. The Bosnia-Herzegovina Statistical Agency now has to report to the Council of the Ministers and Parliament about their decison and next steps. The EU wants the data to be published by July 1, 2016, in order for it to still be valid.
Cooperation with EU institutions In order to follow up the implementation of treaty commitments and obligations of Bosnia-Herzegovina, stemming from the rules of the SAA, a new format of institutional relations between Bosnia-Herzegovina and the EU has been established, with the Stabilization and Association Council (SA Council) and the Stabilization and Association Committee (SA Committee). Further, the first inaugural meeting of the Stabilization and Association Parliamentary Committee was held on November 5-6, 2015, in Sarajevo. The first meeting of the SA Council was held in Brussels on December 11, 2015, and evaluated as very constructive. EU officials recognized the efforts undertaken by BosniaHerzegovina regarding the adoption and implementation of the Reform Agenda, readiness to adopt the SAA and to establish effective coordination mechanisms, as well as the prevailing political will for further implementation of reforms. In order to maintain positive momentum and dynamics in BosniaHerzegovina, clear political support was set out as well as willingness to provide additional assistance in the European integration process.
The first meeting of the SA Committee was held on 17 December, Brussels.
2015, The
in
meeting
marked the beginning of the implementation of the
The Stabilisation and Association Council (SA Council) supervises the implementation of the SAA and comprises members of the Council of the EU, the European Commission and representatives of the Council of Ministers of Bosnia-Herzegovina.
SAA at a technical level. Its main goal was to evaluate progress achieved so far and
to
identify
the
remaining challenges in the pre-accession
process,
especially in the context of the 2015 progress report. The committee has adopted a
decision
on
The Stabilisation and Association Committee (SA Committee) assists the SA Council and is a technical level body. The Stabilisation and Association Parliamentary Committee is a forum of members of the Parliamentary Assembly of BosniaHerzegovina and the European Parliament.
the
establishment of seven sub-committees for stabilization and association, and a special group for public administration reform.
CONCLUSIONS Regional cooperation and good relations in the region are of a great importance for Bosnia-Herzegovina and an important foreign policy priority. Meetings among officials in the Western Balkans, along with bilateral and multilateral conferences, have been held regularly. Bosnia-Herzegovina will continue to promote and participate in regional activities within the context of the Berlin Process and the Western Balkan Six (WB6) Initiative, notably the EU’s Connectivity Agenda. In addition, this year has been particularly dynamic for Bosnia-Herzegovina as it holds the chairmanship of the Central-European Initiative (CEI) and hosted the Summit of the Brdo-Brijuni Process. Along with the renewed approach of the European Union, the EU perspective of Bosnia-Herzegovina has been further reinforced with the entry into force of the SAA, on June 1, 2015. The country’s leadership is aware of all the responsibilities stemming from the agreement and committed to their consistent implementation. It is further crucial that the integration process in the Western Balkans is progressing and that all countries in the region concentrate on the accession priorities.
Positive
developments
send
a
strong
signal
of
the
transformative power of an EU accession perspective and act as an incentive and encouragement to the countries of the region to step up their own preparations for EU membership.
About the author Branislav Borenović is the President
of
the
Party
of
Democratic Progress (PDP) in Bosnia-Herzegovina. He is a member
of
the
National
Assembly of Republika Srpska since 2006, and the President of the Parliamentary Committee for European integration and regional cooperation. He has been an active member of PDP since it was founded in 1999. In 2006 he was a Minister for family, youth and sports in the entity government of Republika Srpska. He is married with three children.
The Jarl Hjalmarson Foundation promotes cooperation and European development based on freedom, democracy and human rights. This is done through education and information directed to political parties and civil society organizations. http://www.hjalmarsonfoundation.se/