EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 23.4.2004 
COM(2004) 205 final/2 
  
CORRIGENDUM 
Titre. Concerne toutes les ve rsions linguistiques, 
sauf le NL. 
Proposal for a 
COUNCIL DECISION 
on the principles, priorities and conditions contained in the European Partnership with 
Bosnia and Herzegovina 
. 
(presented by the Commission) 
  
{SEC(2004) 375}  
 
 2    EXPLANATORY MEMORANDUM  
The Thessaloniki European C ouncil of 19 and 20 June 2003 reit erated its determination to 
fully and effectively support the European pers pective of the Western Balkan countries and 
stated that “the Western Balkans countries will become an integral part  of the EU, once they 
meet the established criteria”. It endorsed the Council’s Conclusions of 16 June 2003 on the Western Balkans including the annex “The The ssaloniki Agenda for the Western Balkans: 
moving towards European integration”, which aims  at further intensifying relations between 
the European Union and the Western Balkans, building also on practices used in the enlargement process, inter a lia through the introduction of European Partnerships. The 
Commission has been invited to submit the first set of European Partne rships to the Council 
for approval with the next Annual Reports on th e Stabilisation and Association process (SAp) 
due end of March 2004.  
The European Partnership for Bosnia and Herz egovina is based on the provisions of Council 
Regulation (EC) No. 533/2004. It lists short- and medium term  priorities for Bosnia and 
Herzegovina‘s preparations for further integrat ion with the European Union identified in the 
Commission’s 2004 Annual Report and serves as  a checklist against which to measure 
progress. The European Partners hip for Bosnia and Herzegovina reflects its current stage of 
preparation and is tailored to its needs. Bosnia  and Herzegovina is expe cted to respond to the 
European Partnership by preparing a plan with  a timetable and details of how it intends to 
address the European Partnership’ s priorities. The progress in im plementing the priorities will 
be monitored regularly by the Commission, not ably in the SAp Annual Reports and through 
the structures set up under the SAp.  
The European Partnership prio rities should form the basis for programming of the financial 
resources making up Community assistance, which will continue to be the assistance provided for under existing financial instrument(s), in particular Council Regulation (EC) No 
2666/2000 of 5 December 2000 (CARDS). 
The proposed Council Decision ha s no financial implications. 
In view of the above, the Commission invite s the Council to adopt the attached decision. 
 
 3    Proposal for a 
COUNCIL DECISION 
on the principles, priorities and conditions contained in the European Partnership with 
Bosnia and Herzegovina 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty esta blishing the European Community, 
Having regard to Council Regulation (EC) No  533/2004 on the establishment of European 
Partnerships in the framework of the Stabilisation and Association process1 and in particular 
to Article 2 thereof, 
Having regard to the proposal from the Commission,  Whereas: (1) The Thessaloniki European Counc il of 19 and 20 June  2003 endorsed the 
“Thessaloniki Agenda for the Wester n Balkans: moving towards European 
integration” where the drawing-up of Europ ean Partnerships is mentioned as one of 
the means to intensify the Stabi lisation and Association process. 
(2) Council Regulation (EC) No 533/2004 sets ou t that the Council is to decide, by a 
qualified majority and following a proposal from the Commission, on the principles, 
priorities and conditions to be contained in  the European Partners hips, as well as any 
subsequent adjustments. 
(3) Council Regulation (EC) No 533/2004 states that the follow up of the implementation 
of the European Partnershi ps will be ensured through th e mechanisms established 
under the Stabilisation and Association process, notably the Annual Reports.  
(4) The Commission's 2003 Feasibility Study a nd 2004 Annual Report pr esent an analysis 
of Bosnia and Herzegovina’s preparations for further integration into the European 
Union and identify a number of pr iority areas for further work. 
(5) In order to prepare for further integra tion into the European Union, Bosnia and 
Herzegovina should develop a pl an with a timetable and deta ils in terms of measures 
Bosnia and Herzegovina intends  to take to this end.  
                                                
 
1 OJ L. 
 
 4    HAS DECIDED AS FOLLOWS:  
Article 1 
In accordance with Article 1 of Council Regulation (EC) No 533/2004, the principles, 
priorities and conditions in the European Part nership for Bosnia and Herzegovina are set out 
in the annex hereto, which forms an  integral part of this Decision. 
Article 2 
The implementation of the European Partnership shall be examined through the mechanisms 
established under the Stabilisati on and Association process.  
Article 3 
This Decision shall take effect on the third day following its publication in the Official 
Journal of the European Communities. 
Done at Brussels,  
 For the Council 
 The President   
 
 5    ANNEX  
1. I NTRODUCTION  
The Thessaloniki Agenda identifies ways and means of intensifying the Stabilisation and 
Association process, inter al ia through the introduction of European Partnerships. 
Based on the Commission’s Annual Report, th e purpose of the Europ ean Partnership for 
Bosnia and Herzegovina is to iden tify priorities for action in or der to support efforts to move 
closer to the European Union within a cohe rent framework. The priorities are adapted to 
Bosnia and Herzegovina’s specific needs and stage of preparation and will be updated as necessary. The European Partners hip also provides guidance for fi nancial assistance to Bosnia 
and Herzegovina. 
It is expected that Bosnia and Herzegovina wi ll adopt a plan including a timetable and details 
in terms of how they intend to address the Eu ropean Partnership priorities. The plan should 
also indicate ways to pursue the Thessaloniki agenda, the priorities on fighting organised 
crime and corruption identified at the 2002 London Conference and at the Ministerial meeting 
held in Brussels on 28 November 2003 in the framework of the EU-Western Balkans Forum and the measures presented by each of the West ern Balkan countries at the meeting of 5 
November 2003 in Belgrade as a follow-up to  the Ohrid Conference on integrated border 
management.  
2. P
RINCIPLES  
The Stabilisation and Associati on process remains the framework for the European course of 
the Western Balkan countries, all the way to their future accession. 
The main priorities identified for Bosnia and He rzegovina relate to its capacity to meet the 
criteria set by the Copenhagen European Co uncil of 1993 and the conditions set for the 
Stabilisation and Association process, notably  the conditions defined by the Council in its 
Conclusions of 29 April 1997 and 21 – 22 June 1999, the content of the final declaration of 
the Zagreb summit of 24 November  2000 and the Thessaloniki agenda. 
3. P RIORITIES  
The Commission’s Annual Report assesses progre ss made and notes areas where the country 
needs to increase its efforts. The priorities lis ted in this European Partnership have been 
selected on the basis that it is realistic to e xpect that Bosnia and Herzegovina can complete 
them or take them substantially forward over th e next years. A distinction is made between 
short-term priorities, which are expected to be accomplished within one or two years, and 
medium-term priorities, which are expected to be accomplished within three to four years. 
The European Partnership indicates the main priority areas for Bosnia and Herzegovina’s 
preparations for further integration into the European Union, based on the analysis in the 
Feasibility Study and the 2004 Annual Report. It should be recalled that where legislative 
approximation is concerned, incorporation of the acquis  into legislation is not in itself 
sufficient; it will also be necessary to prepare its full implementation. 
 
 6    3.1 SHORT-TERM 
POLITICAL SITUATION  
DEMOCRACY AND RULE OF LAW 
• Prepare elections – BiH should assume full organisationa l and financial responsibility for 
the 2004 municipal elections. 
• More effective governance - Implement the Law on the Council of Ministers and the Law 
on Ministries. Convene meetings of the Counc il of Ministers and of Parliament with 
sufficient regularity to tackle  government business expeditious ly. Ensure that new State 
ministries and institu tions created by the 2002 Law on th e Council of Ministers become 
properly operational. Implemen t fully the 2003 – 2004 “Action Plan for Priority Reforms” 
and establish for 2004 (and following years) a consolidated State-le vel government work 
plan matching policy priorities  with budgetary resources.  (Feasibility Study 
recommendation)  
• Follow up security sector reforms - Implement the Law on Defence. Adopt and begin to 
implement the Law on the Intell igence and Security Agency.  
• More effective public administration - Make further effort towards creating an effective 
public administration, including developing a comprehensive and cost-estimated Action 
Plan for public administration reform with a cl ear distribution of competences (for example 
in the areas of police and hea lth). Fund and co-operate with the Civil Service Agencies at 
State and Entity levels. (Feasibility Study recommendation) 
• Effective judiciary - Adopt legislation establishing a singl e High Judicial and Prosecutorial 
Council for BiH with the aim of consolida ting appointment authority over the Entity 
judiciaries and strengthening th e independence of the judici ary throughout BiH. Provide 
appropriate staff and fund ing for the State Court. (Feasibility Study recommendation)  
HUMAN RIGHTS AND PROTECTION OF MINORITIES  
• Effective human rights provisions - Adopt and bring into for ce outstanding legislation 
supporting refugee returns. In particular, intr oduce, adopt and implement legislation on the 
BiH Refugee Return Fund. Complete the tran sfer of the human rights bodies to BiH 
control. Ensure that unresolve d cases of the Human Rights Cham ber are dealt with and that 
the Chamber’s responsibilities are transferred to the Constitutional Court.  Provide adequate 
funding for the Court. Assume full national responsibility for the State Ombudsman and 
make progress on the merger of the State and Entity Ombudsmen. (Feasibility Study 
recommendation)  
REGIONAL AND INTERNATIONAL CO -OPERATION  
• Comply with existing conditionality and international obligations - Fully co-operate with 
ICTY, particularly on the part of RS, notably in bringing indicted war criminals to justice 
before the international tribunal […] Complete outstanding Road Map steps. Comply with the Dayton-Paris Peace Accords. Take steps to implement BiH’s Council of Europe post-
accession criteria, especially in areas of democracy and human rights. (Feasibility Study 
recommendation) 
 
 7    ECONOMIC SITUATION  
EXISTENCE OF A FREE MARKET ECONOMY AND STRUCTURAL REFORMS  
• Ensure macro-economic stability – Maintain a stable macro-economic framework in the 
context of International Monetary Fund pr ogramme and demonstr ate compliance with 
international financial institution conditionality.  
• Improve the business environment -  Drive forward enterprise privatisation. Adopt and 
implement reforms identified as part of the “Bulldozer Initiative”. Enact legislation on corporate governance.  
• Reliable statistics - Implement the Law on Statistics , aiming at the creation of a 
functioning system of statis tics with clear lines of re sponsibility and co-ordination 
mechanisms. (Feasibility Study recommendation) . 
M
ANAGEMENT OF PUBLIC FINANCES  
• Budget legislation  - Adopt and start to implement a budget law covering multi-annual 
budget planning and forecasting and start to el aborate a consolidated government account. 
(Feasibility Study recommendation) 
• Budget practice -  Take steps to record all income accr uing to public authorities at different 
levels of government, including grants and other forms of international assistance. 
(Feasibility Study recommendation) . 
EUROPEAN STANDARDS  
• European integration - Ensure the proper and full func tioning of the Directorate for 
European Integration, including its aid co-ordination capacities.  (Feasibility Study 
recommendation)  
INTERNAL MARKET AND TRADE  
• Respect international standards – Ensure the quick, complete and faithful implementation 
of all negotiated free trade agreements.  
• Develop the BiH single economic space - Establish the Competition Council. Introduce 
provisions on the mutual recognition of products in the legal order of BiH and implement a 
consistent and effective public procurement regime throughout the country. Remove all duplicate licences, permits and similar authorisation requirements to allow service providers (including financia l institutions) to operate thro ughout BiH without having to 
fulfil unnecessary administrative requirements. Create a single business registration system 
that is recognised throughout BiH. (Feasibility Study recommendation)  
• Consistent trade policy -  Establish a coherent and compre hensive trade policy and revise 
existing legislation to ensure a consistent policy on free zones. Establish at State-level 
certification and other procedures for the e xport of animal products and a phytosanitary 
office that are EC-compatible, with a view to promoting exports, but also enhancing 
standards and the single economic space. (Feasibility Stud y recommendation) 
 
 8    • Customs and taxation reform –  Proceed with implementation of the recommendations of 
the Indirect Tax Policy Commission. Ensure parliamentary adoption of the Law on the 
Indirect Tax Authority, including the adoptio n of related enabling legislation. Ensure 
implementation, including the appointment of a Director for the Indire ct Tax Authority and 
the functioning of the new customs authority . Demonstrate progress in preparing the 
introduction of VAT with a vi ew to beginning on schedule. (Feasibility Study 
recommendation)   
• Certificates of origin  – Ensure the reliability of a ll BiH certificates of origin. 
SECTORAL POLICIES  
• Integrated energy market - Implement Entity Action Plans for the restructuring of the 
electricity market. (Feasibility Study recommendation) 
• Public broadcasting - Adopt legislation on PBS in line w ith European standards and the 
Dayton – Paris Peace Accords and take steps to ensure the long-term viability of a 
financially and editorially i ndependent single state-wide p ublic broadcasting system for 
Bosnia and Herzegovina, whose constituent broa dcasters share a common infrastructure. 
(Feasibility Study recommendation) 
CO-OPERATION IN JUSTICE AND HOME AFFAIRS  
• Tackling crime, especially organised crime - Build up a State-level law enforcement 
capacity by allocating the necessary resources and facilities to ensure the full functioning 
of the State Information and Protection Agency  and the BiH Ministry of Security. Proceed 
with structural police reform with a view to rationalising police services. (Feasibility Study 
recommendation)  
• Managing asylum and migration -  Ensure the establishment and operation of proper 
structures dealing with  asylum and migration. (Feasibility Study recommendation) 
• Addressing terrorism – Increase international co-operation and implement relevant 
international conventions on terrorism. Improve  co-operation and exchange of information 
between police and intelligence services within  the State and with other states. Prevent the 
financing and preparatio n of acts of terrorism.  
3.2 MEDIUM-TERM 
POLITICAL SITUATION  
DEMOCRACY AND THE RULE OF LAW  
• Prepare elections -  Assume full organisational and fi nancial responsibility for the 2006 
and other elections. 
• Assume responsibil ity for government - Work towards full national responsibility for 
policy formulation and decision-making. All Stat e-level ministries should be adequately 
financed and operational plans in place for institutions required by a future SAA and 
further European integration. Ensure prope r policy-making co-ordination between all 
levels of government. 
 
 9    • Further improve the functioning of public administration - Implement the consolidated 
Action Plan on public administration reform  and improve administrative procedures. 
Improve policy-making and co-ordination capaciti es and build a training capacity for civil 
servants within BiH (including those dea ling with European integration issues) 
• Further strengthen the judicial system - Ensure equal standards of appointment, 
promotion, discipline and training for judici al and prosecutorial staff throughout BiH. 
Ensure full BiH responsibility for the BiH State Court, the Prosecutor’s Office and the 
High Judicial and Prosecutorial Council in terms of finance, administration and personnel. 
• Advance police reform -  Implement recommendations of functional and strategic reviews 
of the police sector and ensure co-ope ration among law enforcement agencies. 
• Improve the fight against corruption –  Make progress in combating corruption and 
demonstrate compliance with relevant international commitments. Adopt and implement 
an anti-corruption strategy, ensure effectiv e implementation of the law on conflict of 
interests and enhance capacity to investigate and prosecute corruption. 
HUMAN RIGHTS AND THE PROTECTION OF MINORITIES  
• Ensure respect of human rights - Ensure a level of human rights protection comparable to 
or better than that achieved under internatio nal supervision and demonstrate effective 
protection of minority rights, including those of Roma. Ensure comprehensive 
implementation of the Law on the Rights of National Minorities. 
• Complete refugee returns - Complete the refugee return process, facilitating refugees’ 
economic and social reintegration. 
• Consolidate the office of the Ombudsman -  Complete the merger of State and Entity 
Ombudsmen and ensure the functi oning of the new institution. 
REGIONAL AND INTERNATIONAL CO -OPERATION  
• Ensure effective prosec ution of war crimes - Demonstrate success in apprehending ICTY-
indictees and in dismantling networks su pporting indicted war criminals. Ensure 
continuous availability to ICTY  of all documentation, materi als and witnesses relevant to 
ongoing investigations and / or prosecution s. Assume administrative and financial 
responsibility for the War Crimes  Chamber of the State Court. 
• Continue regional co-operation – Work to find solutions to  outstanding bilateral border 
issues with neighbouring countries.  
• Implement internatio nal commitments – Comply with Thessalo niki commitments in 
terms of co-operation in matters of justice an d home affairs, trade,  energy, transport and 
environment.  
ECONOMIC SITUATION  
EXISTENCE OF A FREE MARKET ECONOMY AND STRUCTURAL REFORMS  
• Promote further structural reform – Further improve corporate governance, reduce labour 
rigidities and ensure that co mmercial courts implement ba nkruptcy legislation. Allow the 
 
 10    market to operate by reducing government interference and lowering the ratio between 
government expenditure and GDP.  
• Facilitate business, in particular small an d medium-sized enterprise (SME) development 
– Further develop co-ordination on SME policy and continue to implement the principles 
of the European Charter for Small Enterprises. 
• Further develop State-level capacities in statistics - Elaborate and implement a multi-
annual activity plan for statisti cs and produce regular, sound es timates of nominal and real 
GDP, including coherent data on (un)employme nt, inflation, balance of payments, wages 
and industrial production.  Ensure co-operation with Eurostat. 
MANAGEMENT OF PUBLIC FINANCES  
• Ensure the operation of a consolidated government account - Ensure that a consolidated 
government account is fully operational w ithin the State Ministry of Finance. 
• Develop capacities in economic planning - Continue and reinforce the Medium-Term 
Economic Framework (MTEF) process for all budge tary users. Ensure transparent budget 
execution and regular financial reporting.  
• Further reinforce budget preparation - Incorporate (currently) off-budget resources into 
budgets and maintain reasonable budgeting ba sed on realistic revenue projections. 
Strengthen budget preparation pr ocesses in all ministries.  
• Deal with domestic debt  – Enforce the comprehensive plan  on domestic debt agreed with 
the IMF. 
EUROPEAN STANDARDS  
• European integration – Implement a European integrati on strategy. Develop the capacity 
for progressive legal harmonisation with th e acquis and expand BiH’s role in CARDS 
programming and implementation with the long- term aim of allowing the decentralisation 
of assistance.  
INTERNAL MARKET AND TRADE  
• Single market and business - Demonstrate the effective functioning of the Competition 
Council and the Entity Offices for Comp etition and Consumer Protection. Further 
strengthen the implementation of a consiste nt and effective public procurement regime, 
including the functioning of the Public Proc urement Agency and the Procurement Review 
body. Continue to ensure the free movement of goods and services within BiH. Ensure the 
full functioning of the institute s for standards, metrology and intellectual property and 
facilitate links / information flows with public  / private enterprises. Ensure consistent 
implementation of related legislation (especially on intellectual property). 
• Trade management capacity – Reinforce policy planning and negotiation capacities in the 
Ministry of Foreign Trade and Economic Relations. 
• Trade standards –  Further develop the capac ity of the State Veteri nary Office and ensure 
the full functioning of the Phytosanitary Offi ce with a view to reaching EU standards. 
 
 11    Create a regulatory environment for technical st andards, intellectual and industrial property 
rights in line with EU standards. 
• Customs and taxation - Demonstrate that free zones are being managed in a manner 
compatible with the EU acquis.  Complete the customs merger and ensure full 
implementation of the customs reform pla n. Develop the ITA Governing Board into a 
Fiscal Council with a policy-setting capacity. Further strengthen administrative capacity 
for both customs and taxation. Monitor the implementation of State-level VAT and 
continue to develop collection and control strategies to redu ce progressively the level of 
tax fraud for both direct  and indirect taxation. 
SECTORAL POLICIES  
• Public broadcasting system - Fully implement agreed PBS reforms. Maintain the 
independence of the Communications Regulatory Agency. 
• Integrated energy market – Ensure harmonisation of th e regulatory environment for 
energy and the establishment of a single State regulatory body, including the implementation of the law on the formati on of ISO and TRANSCO. Implement the 
commitments in the 2003 Athens Memorandum of Understanding.  
• Environment – Strengthen State-level capacity in th e field of environment by ensuring the 
full functioning of a State Environment Agency. 
C
O-OPERATION IN JUSTICE AND HOME AFFAIRS  
• Border management - Implement international commitments made at the May 2003 Ohrid 
Conference on security and border management and the measures presented at the EU – 
Western Balkans ministerial forum on JHA of  November 2003. Endorse and implement an 
Integrated Border Management Strategy. Faci litate regional co-operation and trade by 
improving border management and transport facilities. Further develop co-operation 
between the State Border Service, the custom s service, the police and the Prosecutor’s 
Office to interdict and prosecute traffickin g and other cross-border crime. Further 
implement the national anti-trafficking plan. Improve the administrative capacity of the 
visa issuing regime, particularly th e checking of visa applications.  
• Organised crime -  Demonstrate full implementation of all measures agreed in the Action 
Plan against Organised Crime presented at the Brussels JHA ministerial meeting of 
November 2003.  
• Migration and asylum –  Consistently enforce the Law on the Movement and Stay of 
Aliens and Asylum. Demonstrate effective nati onal management of asylum and migration 
policies and monitor and repor t on operations. Continue to negotiate and conclude 
readmission agreements. 
4. P ROGRAMMING  
Community assistance under the Stabilisation and Association process to the Western Balkan 
countries will be provided  by the relevant financial instrument s, and in particular by Council 
 
 12    Regulation (EC) No 2666/20002; accordingly, this Decision will have no financial 
implications. In addition, Bosnia and Herz egovina will have access to funding from multi-
country and horizontal programmes. The Co mmission is working with the European 
Investment Bank and the Interna tional Financial Institutions, in  particular the European Bank 
for Reconstruction and Development and the Worl d Bank, with a view to  facilitate the co-
financing of projects relating to the St abilisation and Asso ciation process.  
5. C ONDITIONALITY  
Community assistance under the Stabilisation and Association process to the Western Balkan 
countries is conditional on furthe r progress in satisfying the Cope nhagen political criteria and 
in particular progress in meeting the specific prio rities of this European Partnership. Failure to 
respect these general co nditions could lead the Council to take appropriate measures on the 
basis of Article 5 of Regulation (EC) No 2666/2000.  
Community assistance shall also be subject to  the conditions defined by the Council in its 
Conclusions of 29 April 1997 and 21 – 22 June 1999, in particular as regards the recipients’ 
undertaking to carry out democratic, economic and institutional reforms. 
6. M ONITORING  
The follow up of the European Partnership is  ensured through the mechanisms established 
under the Stabilisation and Association pr ocess, notably the Annual Report on the 
Stabilisation and Association process.  
                                                 
2 OJ L 306, 7.12.2000. p.1.