Main steps towards the EU

EU integration is one of the main political objectives of Bosnia and Herzegovina. The Stabilisation and Association Process (SAP) is the EU’s policy framework. Countries participating in the SAP have been offered the possibility to become, once they fulfill the necessary conditions, Member States of the EU. Bosnia and Herzegovina is therefore a potential candidate country for EU accession.

While, at this stage, there is no contractual instrument between the EU and Bosnia and Herzegovina, an EU/Bosnia and Herzegovina Consultative Task Force was established in 1998 as a joint vehicle for political dialogue and expert advice. Meetings of the Consultative Task Force (CTF) have constituted a central forum for technical and political exchanges. In January 2006, the CTF was re-named "Reform Process Monitoring (RPM)" to mark the start a new phase in the relations between the EU and Bosnia and Herzegovina, i.e. the start of the negotiations of a Stabilisation and Associations Agreement (SAA).

The negotiations on a Stabilisation and Association Agreement (SAA) were launched in November 2005. They have progressed well from a technical point of view. Nonetheless, the conclusion of the negotiations is contingent to significant overall progress in addressing key priorities, notably as regards police reform, ICTY co-operation, public broadcasting and public administration.

The Stabilisation and Association Agreement will constitute the contractual framework between the EU and Bosnia and Herzegovina. This Agreement is crucial for Bosnia and Herzegovina’s aspirations to be part of the EU.

EU assistance

Since 1991, the EC has set aside more than EUR 2.5 billion to deal with conflict and post-conflict in Bosnia and Herzegovina.

1991-2000: More than EUR2 billion of EC assistance (mainly through the ECHO, PHARE and OBNOVA programmes) focused on refugee programmes and reconstruction.
2001-2006: Since 2001, the main source of EU assistance for BiH has been the CARDS program with the focus shifting from post-war assistance to institutional capacity-building and economic development. In the period 2001-2006, the Community has supported BiH with over €500 million. The aim of the assistance has been to assist Bosnia and Herzegovina to fulfill its responsibilities as a state. Key areas are public administration reform (including customs and taxation), justice and home affairs-related issues (including police reform, integrated border management, judicial reform) and improving the investment climate (including trade, education, environment and infrastructure).

In addition, the EC has been providing macro-financial assistance to Bosnia and Herzegovina. In 1999 the EU allocated funds amounting to EUR 60m (EUR 20m loan, EUR 40m grant). This assistance was followed by a similar amount in 2002. Alongside IMF-based economic conditionality, elements of more political conditionality are applied to this assistance, including commitment to customs and tax reform.

Contractual relations

Despite the absence of formal contractual relations, the EU is the main trade partner of Bosnia and Herzegovina (exchanges with the EU represent over 50% of the Bosnia and Herzegovina’s total trade). The vast majority of Bosnia and Herzegovina products can enter the EU duty free thanks to an autonomous preferential regime adopted by the EU in 2000, and now extended until 2010. Bosnia and Herzegovina exports mainly to Italy, Germany and Slovenia. Bosnia and Herzegovina imports originate from these EU countries and, to a lesser extent, from Austria. Bosnia and Herzegovina exports are essentially base metals, wood and wood products, mineral products and chemicals. Imports include in particular machinery, mineral products, foodstuffs and chemicals.

CFSP/ESDP Missions

The EU continues to deploy considerable resources in Bosnia and Herzegovina within the framework of the Common Foreign and Security Policy (CFSP) and the European Security and Defence Policy (ESDP). A new EU Special Representative (EUSR), who also continues to be the High Representative, was appointed in January 2006. The EUFOR/Althea mission continues to be present in Bosnia and Herzegovina with some 6,000 troops. The mandate of the EU Police Mission (EUPM) was extended for two years from the beginning of 2006. The streamlined mission is now focused on the fight against organised crime and is advising on police reform. The mandate of the EU Monitoring Mission (EUMM) was first extended until the end of 2006 and will be likely extended for an additional year. The EU has expressed its intention to reinforce its engagement in Bosnia and Herzegovina after the expected closure of the Office of the High Representative (OHR) on 30 June 2007.

http://ec.europa.eu/enlargement/bosnia_and_herzegovina/