Bosnia fails to adopt Reform Agenda, EU funds at risk

As a result, Bosnia is increasingly likely to lose an additional 10 percent of the funds allocated under the European Union’s Growth Plan for the Western Balkans.

The session began at 1 pm, with voting scheduled by 2 pm. However, Finance and Treasury Minister Srdjan Amidzic and Foreign Trade and Economic Relations Minister Stasa Kosarac both refused to support the agenda, effectively blocking its adoption.

According to sources, the decision not to support the Reform Agenda followed reports that Slovenia had imposed sanctions on Milorad Dodik, the leader of the SNSD.

The setback came as a surprise, as both Amidzic and Kosarac had previously indicated to colleagues that they would support the agenda.

The consequences of the delay in adopting reforms fall squarely on the citizens of Bosnia and Herzegovina, who stand to lose access to crucial EU funds that could benefit various sectors of society. The Growth Plan funds were intended to provide significant financial inflows and support the implementation of numerous development projects across the country.

However, with reforms stalled, the process has come to a standstill. The EU has warned that unless Bosnian authorities submit a reform program by the end of this month, the country will face an additional 10 percent cut in Growth Plan funds.

The fund allocation has already been reduced once before by 10 percent in late June and early July, but still remains substantial at €976 million. Despite this, political leaders in BiH have shown little progress toward adopting and submitting the reform program that would unlock these resources.

EU officials have stressed that timely reforms are essential for Bosnia and Herzegovina to fully benefit from the Growth Plan, which aims to foster economic development, stability, and integration in the Western Balkans.