WRITTEN QUESTION E-2057/00

by Francesco Musotto (PPE-DE) to the Commission

(27 June 2000)

Subject: Bosnia and Herzegovina

As no integrated Bosnian market exists between the Republika Srpska (the Bosnian Serb entity) and the Muslim-Croat Federation, which has limited the prospects of sustainable economic development, does the EU intend to encourage the establishment of an integrated economic area?

In view of the elections last April in which moderates in Bosnia and Herzegovina were successful, does the EU intend to promote actions for the benefit of communes led by moderate mayors by establishing partnership arrangements?

As the joint institutions envisaged in the Dayton negotiations are not functioning effectively, does the EU intend to increase the technical assistance provided to those institutions with a view to facilitating coordination between state authorities and the entities and between the centre and the periphery?

Answer given by Mr Patten on behalf of the Commission

(14 July 2000)

The Commission is concerned that the absence of an integrated market will limit sustainable economic development in Bosnia and Herzegovina. In the Community-Bosnia and Herzegovina Consultative Task Force, the Commission has encouraged both entities and the central government to establish conditions in which an integrated domestic market can develop. Thus, the road map of steps to be taken by Bosnia and Herzegovina before beginning negotiations on a stabilisation and association agreement includes actions designed to promote the development of an integrated economic space. Moreover, Community financial assistance supports this objective. Assistance has been provided to develop a unified legislative framework in the field of insurance, competition and arbitration. Community technical support will be provided for the establishment of a state-level competition council and office for competition and consumer protection as well as an arbitration centre. The European Community customs and fiscal administration office (CAFAO) has made a significant contribution to the creation of a single economic space. The CAFAO programme has assisted the state Ministry of foreign trade and economic relations in drafting and developing customs and tariff laws which, for the first time, established a single customs territory in Bosnia and Herzegovina.

The programme of assistance for this year includes a component specifically supporting municipal development. The objective of the programme is to work with a number of pilot municipalities and associations of municipalities in order to strengthen their management capacity

and to forge links between municipalities in different parts of the country. Limited co-operation with other municipalities from the region, on a test basis, may also form part of the programme. Since the programme will be aimed at localities which are willing to co-operate with other European regions, it will certainly favour those Bosnian municipalities which have elected moderate and reformist administrations.

Since 1996 the Community has allocated approximately 29 million to support the functioning and consolidation of Bosnia and Herzegovina as a state. In 2000 Bosnia's common institutions the Presidency, the Parliamentary Assembly, the Council of Ministers and the six line ministries will continue to receive technical assistance. This will build on the previous programme of assistance to the state institutions. A specific objective of the new programme will be to increase co-ordination and co-operation between the state and the entities and to develop an independent and professional civil service. The latter, when established, will also contribute to improving relations between the centre and the entities/periphery.