Bosnia and Herzegovina will not receive the first round of financing from the Growth Plan for the Western Balkans due to the "lack of political consensus" in the country, the Delegation of the European Union said in a Wednesday statement.

The growth plan for the Western Balkans is an opportunity for Bosnia and Herzegovina to receive over 2 billion Bosnian marks (€1 million) in exchange for concrete reforms that will create conditions for stronger economic growth, including more functional institutions, a stronger rule of law and a better business climate. In addition to investments and reforms, the Growth Plan opens opportunities for Bosnia and Herzegovina to have greater access to the European single market of over 450 million consumers, as well as to establish a common regional market in the Western Balkans.

“The BiH authorities submitted to the European Commission a draft of the comprehensive Reform Agenda, which is a necessary basis for participation in the Growth Plan for the Western Balkans. The European Commission prepared its evaluation of the draft Reform Agenda of BiH and conveyed its comments to the authorities in BiH, requesting that certain revisions be carried out. However, on July 16, the BiH authorities informed the Commission that in the absence of political consensus, they are not in a position to share the finalized text,” the EU Delegation stated.

The problem with the document arose due to three measures that were not accepted by the authorities in Republika Srpska. They concern the establishment of a single phone number for emergencies in the entire country, the abolition of the entity veto on decisions on the allocation of aid from state funds, and the filling of vacant positions in the Constitutional Court of Bosnia and Herzegovina and compliance with the decisions of this Court.

“Failure to adopt the Reform Agenda in accordance with the Commission's comments will have consequences: unlike other partners in the region, Bosnia and Herzegovina will not receive the first unconditional instalment of pre-financing scheduled for payment after the summer, in the amount of 7% (€ 70 million), which will miss a significant opportunity for early financing,” they stated.

“This is a missed opportunity and we hope that the BiH authorities will soon be able to come to an agreement,” the Delegation added.

The EU Delegation stated that it continues to work with the authorities, supporting the completion of the necessary work and that it expects to receive the Reform Agenda once it is politically accepted.

The Growth Plan is supported by a new financial instrument – the Reform and Growth Instrument for the Western Balkans – worth up to € 6 billion in grants and loans for the entire region.