EU cuts BiH’s Growth Plan funds by €108.5 million over reform delays

The European Commission has officially informed Bosnia’s Council of Ministers, specifically Chairwoman Borjana Krišto, via written correspondence that the consequences it had previously warned about are now taking effect.

The EU had repeatedly emphasized the urgency of meeting reform commitments. Luigi Soreca, the Head of the EU Delegation to Bosnia and Herzegovina, recently reiterated this in an interview with N1, warning that Brussels expected timely action.

"The European Union welcomed the decision by Bosnia and Herzegovina’s Council of Ministers to unanimously adopt the Draft Reform List and Draft Reform Agenda after 12 months of delay," Soreca told N1 on July 2. "However, we clearly stated that the 45-day deadline to finalize the document is non-negotiable. We expect the final document to be delivered to Brussels by next week. Otherwise, we will be forced to consider reducing Bosnia and Herzegovina’s funding by €100 million."

In an official letter, EU Commissioner for Enlargement Olivér Várhelyi’s colleague Marta Kos reminded Bosnian authorities that the European Commission had already warned on June 18 about the need to submit the final Reform Agenda by July 1, ahead of the Western Balkans leaders’ summit held in Skopje.

"While I welcome the continuation of talks within Bosnia and Herzegovina, I must note that the Commission has still not received a finalized and agreed Reform Agenda from Bosnia and Herzegovina," Kos wrote. "Therefore, I regret to inform you that the Commission cannot retain the amount originally allocated for Bosnia and Herzegovina."

She urged Bosnian authorities to submit the final version without further delay, warning that if the document is not delivered by September 30, 2025, an additional 10 percent reduction in funding will follow.

The latest move by the European Commission is seen by observers as yet another indication that the political elites in Bosnia and Herzegovina prioritize power-sharing and political appointments over the country’s progress and the welfare of its citizens.