The Growth Plan for the Western Balkans presents an opportunity for Bosnia and Herzegovina to receive over 2 billion Bosnian marks (over €1 billion) in return for specific reforms that will generate the conditions for stronger economic growth, including more functional institutions, stronger rule of law and an improved business climate, European Delegation to BiH told N1 on Thursday.

In November 2023, the European Commission adopted a completely new instrument intended to bring the Western Balkans countries closer to the EU standards. The instrument is called the “Growth Plan” for a reason and it was designed to accelerate reforms and directly contribute to the lives of citizens. It also brings with it the opportunity to receive over €1 billion for each of the Western Balkans countries.

Currently, Bosnia and Herzegovina is the only one of the six Balkan countries that has not finalized the key prerequisite – the Reform Agenda. The deadline was this Friday.

“In addition to investment and reform, the Growth Plan opens opportunities for Bosnia and Herzegovina to gain greater access to the European Single Market of over 450 million consumers, as well as establish a Regional Common Market in the Western Balkans,” the Delegation said.

“Currently, Bosnia and Herzegovina is the EU’s only partner in the Western Balkans that has not finalised its Reform Agenda, which is the key requirement for participation in the Growth Plan. Intense negotiations between the EU and Bosnia and Herzegovina are ongoing and making progress,” they added.

At the end of November 2023, Bosnia’s Council of Ministers appointed an ad hoc body to develop a reform plan for the implementation of the Growth Plan for the Western Balkans.

The body is headed by the Council of Ministers Chair Borjana Kristo. However, instead of harmonization Kristo issued a warning, on Friday.

“We have a deadline of 12 o'clock today, and I dealt with it this morning and late last night. We'll make a statement on Monday at the latest, or maybe later today. We’ll send everything agreed upon to the European Commission via a consolidated report. I sent a letter to all the members of the ad hoc commission for the implementation of the new EU Growth Plan for the Western Balkans countries and warned them. The constitutional structure of Bosnia and Herzegovina is such that everyone has the right, when it comes to their competencies, to express themselves and submit certain remarks,” Kristo announced.

In principle, the responses from Republika Srpska (RS) entity institutions are still missing.

The Delegation told N1 that the EU remains committed to the principle that all its Western Balkans partners, including BiH, should participate in the Growth Plan. Nonetheless, time is running short and BiH’s institutions must finalise the Reform Agenda by the end of April, or risk missing out on an investment worth more than €1 billion, as well as the growth-focused reforms that come with it.