The Employers’ Association of the Federation of Bosnia and Herzegovina (FBiH) held a press conference Thursday in which it expressed serious concerns about the economic outlook. It predicted continued layoffs, rising prices, and significant challenges for the export sector due to Germany’s economic slowdown and the introduction of CO2 taxes in BiH starting next year. Pročitaj više

Adnan Smailbegovic, president of the Employers’ Association of FBiH, stated that while employers support all legitimate and legal measures, they had planned for different approaches than those adopted by the government.

“The government was very strict and refused to back down from its decisions regarding the minimum wage and freezing of contributions. We tried to influence these regulations, and while they may soften some negative consequences, the effects will still be felt. Inflation has already been rising, with a significant contribution from the minimum wage increase. Job losses have already begun, and more layoffs will follow in the next month or two as a direct consequence of this decision. Another major issue is that this will inevitably drive more businesses into the informal economy. Those unable to operate legally will be forced ‘into the grey market’. The most painful long-term impact is that this will slow or halt economic growth,” Smailbegovic claimed.

He emphasized that Bosnia and Herzegovina has been waiting for fiscal reforms for too long and accused the government of stalling.

Snjezana Kopruner, one of the country’s top exporters and vice president of the Employers’ Association, acknowledged that the government had good intentions but argued that its measures were poorly executed.

“Increasing the minimum wage is a step in the right direction, but it felt like a bomb was dropped on us, forcing us to react. However, it has at least sparked discussions that we hadn’t had for the past ten years. Employers have been calling for changes to fiscal and parafiscal burdens for a decade,” Kopruner stated.

She warned that Bosnian exporters are facing a severe crisis worse than those in 2008 and 2009.

“The impact is most evident in Western markets. Germany, our main export partner, particularly in the metal industry, is experiencing a significant decline. The minimum wage increase has hit industries with lower profit margins the hardest – such as leather, footwear, and other low-profit sectors. We don’t know how we will overcome this crisis. Another major problem is the CO2 tax, which will reduce the competitiveness of our exporters because Bosnia has yet to adopt the necessary regulations on renewable energy and CO2 taxation. This is a serious issue, and I don’t see anyone addressing it,” she said.