The European Commission noted that Bosnia’s economy continued to show signs of solid growth, while still facing significant challenges such as high unemployment, low investments, a weak business environment, low quality of fiscal governance and weak innovation.

Representatives of the European Commission and Bosnia and Herzegovina discussed the most recent developments and future policy challenges in Bosnia’s economy during the 3rd Subcommittee meeting on Economic and Financial Issues and Statistics.

The meeting which was held in Mostar, on November 15 and 16, was co-chaired by Bosnia’s Vera Letica, Assistant Minister at the Finance a Ministry and by Uwe Stamm from the Directorate General Economic and Financial Affairs of the European Commission.

The Commission noted that reforms in the country were slow in the past two years and that fragmented markets, a poorly functioning labour market, a weak rule of law and the insufficient alignment of education with the needs of the labour market are impediments for long-term growth.

In this context, they stressed Bosnia's need to improve the quality of public finance by strengthening its growth friendliness and by improving the targeting of social spending.

They also called upon Bosnia to continue its efforts to reduce its tax wedge and to address the informal economy.

The EU representatives underlined the relevance of the EU Economic and Financial Dialogue with Bosnia and other enlargement countries for shaping future reforms in line with the criteria for EU accession.