2004/515/EC:Council Decision of 14 June 2004 on the principles, priorities and conditions contained in the European Partnership with Bosnia and Herzegovina
Date: 2004-06-14
Institutions: Council of the European Union
Subjects: Bosnia and Herzegovina, European Union, aid policy, association agreement (EU), cooperation policy, economic stabilisation, human rights

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II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 14 June 2004

on the principles, priorities and conditions contained in the European Partnership with Bosnia and
Herzegovina

(2004/515/EC)

THE COUNCIL OF THE EUROPEAN UNION,

(4)

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 533/2004 of
22 March 2004 on the establishment of European Partnerships
in the framework of the stabilisation and association process (1)
and in particular to Article 2 thereof,

HAS DECIDED AS FOLLOWS:

to prepare for further

In order
integration into the
should
European Union, Bosnia
develop a plan with a timetable and details in terms of
measures Bosnia and Herzegovina intends to take to this
end,

and Herzegovina

Having regard to the proposal from the Commission,

Article 1

Whereas:

(1)

(2)

(3)

The Thessaloniki European Council of 19 and 20 June
2003 endorsed the ‘Thessaloniki Agenda for the western
Balkans: moving towards European integration’ where the
drawing up of European partnerships is mentioned as
one of the means to intensify the stabilisation and asso-
ciation process.

Regulation (EC) No 533/2004 sets out that the Council is
to decide, by a qualified majority and following a
from the Commission, on the principles,
proposal
contained in the
to be
and conditions
priorities
any subsequent
European Partnerships,
adjustments.
the
implementation of
the European Partnerships will be
ensured through the mechanisms established under the
stabilisation and association process, notably the Annual
Reports.

It also states that

the follow up of

as well

as

In accordance with Article 1 of Regulation (EC) No 533/2004,
the principles, priorities and conditions in the European Part-
nership with Bosnia and Herzegovina are set out in the annex
hereto, which forms an integral part of this Decision.

Article 2

the European Partnership shall be
The implementation of
examined through the mechanisms established under the stabi-
lisation and association process.

Article 3

This Decision shall take effect on the third day following its
publication in the Official Journal of the European Union.

Done at Luxembourg, 14 June 2004.

The Commission's 2003 Feasibility Study and 2004
Annual Report present an analysis of Bosnia and Herze-
govina's preparations for further integration into the
European Union and identify a number of priority
areas for further work.

For the Council
The President

B. COWEN

(1) OJ L 86, 24.3.2004, p. 1.

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ANNEX

1.

INTRODUCTION

The Thessaloniki Agenda identifies ways and means of intensifying the stabilisation and association process (SAP),
inter alia, through the introduction of European Partnerships.

Based on the Commission's Annual Report, the purpose of the European Partnership with Bosnia and Herzegovina
(BiH) is to identify priorities for action in order to support efforts to move closer to the European Union within a
coherent framework. The priorities are adapted to BiH's specific needs and stage of preparation and will be updated
as necessary. The priorities also take into account related policy commitments made by the BiH authorities
including the mid term development strategy. The European Partnership also provides guidance for financial
assistance to BiH.

It is expected that BiH will adopt a plan including a timetable and details in terms of how they intend to address the
European 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 western Balkan countries at the meeting of 5 November 2003 in Belgrade as a
follow-up to the Ohrid Conference on integrated border management.

2.

PRINCIPLES

The SAP remains the framework for the European course of the western Balkan countries, all the way to their future
accession.

The main priorities identified for BiH relate to its capacity to meet the criteria set by the Copenhagen European
Council of 1993 and the conditions set for the SAP, notably the conditions defined by the Council
in its
conclusions of 29 April 1997 and 21 and 22 June 1999, the content of the final declaration of the Zagreb
summit of 24 November 2000 and the Thessaloniki agenda.

3.

PRIORITIES

The Commission's Annual Report assesses progress made and notes areas where the country needs to increase its
efforts. The priorities listed in this European Partnership have been selected on the basis that it is realistic to expect
that BiH can complete them or take them substantially forward over the 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 BiH'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,
legislation is not in itself sufficient; it will also be necessary to prepare its full implementation.

incorporation of the EU acquis into

3.1. SHORT TERM

Political situation

Democracy and rule of law
P r e p a r e e l e c t i o n s — BiH should assume full organisational and financial responsibility for the 2004
municipal elections.

M o r e e f f e c t i v e g o v e r n a n c e — Implement the Law on the Council of Ministers and the Law on
Ministries. Convene meetings of the Council of Ministers and of Parliament with sufficient regularity to tackle
government business expeditiously. Ensure that new State ministries and institutions created by the 2002 Law on
the Council of Ministers become properly operational. Implement fully the 2003 and 2004 ‘Action Plan for Priority
Reforms’ and establish for 2004 (and following years) a consolidated State level government work plan matching
policy priorities with budgetary resources (Feasibility Study recommendation).

F o l l o w u p s e c u r i t y s e c t o r
implement the Law on the Intelligence and Security Agency.

r e f o r m s — Implement

the Law on Defence. Adopt and begin to

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M o r e e f f e c t i v e p u b l i c a d m i n i s t r a t i o n — Make further effort towards creating an effective public
administration,
including developing a comprehensive and cost estimated Action Plan for public administration
reform with a clear distribution of competences (for example in the areas of police and health). Fund and cooperate
with the Civil Service Agencies at State and Entity levels (Feasibility Study recommendation).

E f f e c t i v e j u d i c i a r y — Adopt legislation establishing a single High Judicial and Prosecutorial Council for
BiH with the aim of consolidating appointment authority over the Entity judiciaries and strengthening the inde-
pendence of the judiciary throughout BiH. Provide appropriate staff and funding for the State Court (Feasibility Study
recommendation).

Human rights and protection of minorities
E f f e c t i v e h u m a n r i g h t s p r o v i s i o n s — Adopt and bring into force outstanding legislation supporting
refugee returns.
legislation on the BiH Refugee Return Fund.
Complete the transfer of the human rights bodies to BiH control. Ensure that unresolved cases of the Human
Rights Chamber 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).

introduce, adopt and implement

In particular,

Regional and international cooperation
C o m p l y w i t h e x i s t i n g c o n d i t i o n a l i t y a n d i n t e r n a t i o n a l o b l i g a t i o n s — Fully cooperate
with the International Criminal Tribunal for the former Yugoslavia (ICTY), particularly on the part of Republica
Srpska, notably in bringing indicted war criminals to justice before the ICTY. 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).

Economic Situation

Existence of a free market economy and structural reforms
E n s u r e m a c r o e c o n o m i c s t a b i l i t y — Maintain a stable macro economic framework in the context of
the International Monetary Fund programme and demonstrate compliance with international financial institution
conditionality.

I m p r o v e t h e b u s i n e s s e n v i r o n m e n t — Drive forward enterprise privatisation. Adopt and implement
reforms identified as part of the ‘Bulldozer Initiative’. Enact legislation on corporate governance.

R e l i a b l e s t a t i s t i c s — Implement the Law on Statistics, aiming at the creation of a functioning system of
statistics with clear lines of responsibility and coordination mechanisms (Feasibility Study recommendation).

Management of public finances
B u d g e t l e g i s l a t i o n — Adopt and start to implement a budget law covering multi annual budget planning
and forecasting and start to elaborate a consolidated government account (Feasibility Study recommendation).

B u d g e t p r a c t i c e — Take steps to record all
government, including grants and other forms of international assistance (Feasibility Study recommendation).

income accruing to public authorities at different levels of

EU standards
E u r o p e a n i n t e g r a t i o n — Ensure the proper and full functioning of the Directorate for European Inte-
gration, including its aid coordination capacities (Feasibility Study recommendation).

Internal market and trade

R e s p e c t
negotiated free trade agreements.

i n t e r n a t i o n a l s t a n d a r d s — Ensure the quick, complete and faithful implementation of all

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Develop t h e B i H s i n g l e e c o n o m i c s p a c e — 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
to operate throughout BiH without
requirements to allow service providers (including financial
having to fulfil unnecessary administrative requirements. Create a single business registration system that
is
recognised throughout BiH (Feasibility Study recommendation).

institutions)

t r a d e p o l i c y — Establish a coherent and comprehensive trade policy and revise existing
C o n s i s t e n t
legislation to ensure a consistent policy on free zones. Establish at State level certification and other procedures
for the export of animal products and a phytosanitary office that are EU compatible, with a view to promoting
exports, but also enhancing standards and the single economic space (Feasibility Study recommendation).

C u s t o m s a n d t a x a t i o n r e f o r m — 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
adoption of related enabling legislation. Ensure implementation, including the appointment of a Director for the
Indirect Tax Authority and the functioning of the new customs authority. Demonstrate progress in preparing the
introduction of VAT with a view to beginning on schedule (Feasibility Study recommendation).

C e r t i f i c a t e s o f o r i g i n — Ensure the reliability of all BiH certificates of origin.

Sectoral policies
I n t e g r a t e d e n e r g y m a r k e t — Implement Entity Action Plans for the restructuring of the electricity
market (Feasibility Study recommendation).

P u b l i c b r o a d c a s t i n g — Adopt legislation on PBS in line with EU standards and the Dayton–Paris Peace
Accords and take steps to ensure the long term viability of a financially and editorially independent single state wide
public broadcasting system for BiH, whose constituent broadcasters share a common infrastructure (Feasibility Study
recommendation).

Cooperation in justice and home affairs
T a c k l i n g c r i m e , e s p e c i a l l y o r g a n i s e d c r i m e — 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 ratio-
nalising police services (Feasibility Study recommendation).

M a n a g i n g a s y l u m a n d m i g r a t i o n — Ensure the establishment and operation of proper structures
dealing with asylum and migration (Feasibility Study recommendation).

t e r r o r i s m — Increase international cooperation and implement

A d d r e s s i n g
international
conventions on terrorism. Improve cooperation and exchange of information between police and intelligence
services within the State and with other states. Prevent the financing and preparation of acts of terrorism.

relevant

3.2. MEDIUM TERM

Political Situation

Democracy and the rule of law
P r e p a r e e l e c t i o n s — Assume full organisational and financial responsibility for the 2006 and other
elections.

A s s u m e r e s p o n s i b i l i t y f o r g o v e r n m e n t — Work towards full national responsibility for policy
formulation, strategic planning and decision making. All State-level ministries should be adequately financed and
operational plans in place for institutions required by a future Stabilisation and Association Agreement and further
European integration. Ensure proper policy making coordination between all levels of government.

F u r t h e r i m p r o v e t h e f u n c t i o n i n g o f p u b l i c a d m i n i s t r a t i o n — Implement the consolidated
Action Plan on public administration reform and improve administrative procedures. Improve policy-making and
coordination capacities and build a training capacity for civil servants within BiH (including those dealing with
European integration issues)

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F u r t h e r s t r e n g t h e n t h e j u d i c i a l s y s t e m — Ensure equal standards of appointment, promotion,
discipline and training for judicial 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.

A d v a n c e p o l i c e r e f o r m — Implement recommendations of functional and strategic reviews of the police
sector and ensure cooperation among law enforcement agencies

I m p r o v e t h e f i g h t a g a i n s t c o r r u p t i o n a n d o r g a n i s e d c r i m e — Make progress in combating
corruption and demonstrate compliance with relevant international commitments. Adopt and implement an anti-
corruption strategy, ensure effective implementation of the law on conflict of interests and enhance capacity to
investigate and prosecute corruption. Facilitate the placement of liaison officers, seconded by EU Member States in
the relevant State bodies involved in the fight against organised crime. Provide six monthly reports to the EU on
tangible results achieved in the judicial pursuit of organised crime related activities under the terms of the United
Nations Convention on transnational organised crime, known as the Palermo Convention.

Human rights and the protection of minorities
E n s u r e r e s p e c t o f h u m a n r i g h t s — Ensure a level of human rights protection comparable to or better
than that achieved under international supervision and demonstrate effective protection of minority rights, including
those of Roma. Ensure comprehensive implementation of the Law on the Rights of National Minorities.

C o m p l e t e r e f u g e e r e t u r n s — Complete the refugee return process, facilitating refugees' economic and
social reintegration.

C o n s o l i d a t e
Ombudsmen and ensure the functioning of the new institution.

t h e o f f i c e o f

t h e O m b u d s m a n — Complete the merger of State and Entity

Regional and international cooperation
E n s u r e e f f e c t i v e p r o s e c u t i o n o f w a r c r i m e s — Demonstrate success in apprehending ICTY
indictees and in dismantling networks supporting indicted war criminals. Ensure continuous availability to ICTY
of all documentation, materials and witnesses relevant to ongoing investigations and/or prosecutions. Assume
administrative and financial responsibility for the War Crimes Chamber of the State Court.

C o n t i n u e r e g i o n a l c o o p e r a t i o n — Work to find solutions to outstanding bilateral border issues with
neighbouring countries.

I m p l e m e n t
cooperation in matters of justice and home affairs, trade, energy, transport and environment.

i n t e r n a t i o n a l c o m m i t m e n t s — Comply with Thessaloniki commitments in terms of

Economic situation

Existence of a free market economy and structural reforms

P r o m o t e f u r t h e r s t r u c t u r a l r e f o r m — Further improve corporate governance, reduce labour rigidities
and ensure that commercial courts implement bankruptcy legislation. Allow the market to operate by reducing
government interference and lowering the ratio between government expenditure and GDP.

F a c i l i t a t e b u s i n e s s ,
i n p a r t i c u l a r s m a l l a n d m e d i u m s i z e d e n t e r p r i s e ( S M E ) d e v e l -
o p m e n t — Further develop coordination on SME policy and continue to implement the principles of the
European Charter for Small Enterprises.

i n s t a t i s t i c s — Elaborate and implement a multi
F u r t h e r d e v e l o p S t a t e l e v e l c a p a c i t i e s
annual activity plan for statistics and produce regular, sound estimates of nominal and real GDP,
including
coherent data on (un)employment, inflation, balance of payments, wages and industrial production. Ensure coop-
eration with Eurostat.

Management of public finances
E n s u r e t h e o p e r a t i o n o f a c o n s o l i d a t e d g o v e r n m e n t a c c o u n t — Continue to reinforce the
medium term economic framework process for all budgetary users. Ensure transparent budget execution and regular
financial reporting.

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D e v e l o p c a p a c i t i e s i n e c o n o m i c p l a n n i n g — Continue to reinforce the medium-term economic
framework process for all budgetary users. Ensure transparent budget execution and regular financial reporting.

F u r t h e r r e i n f o r c e b u d g e t p r e p a r a t i o n — Incorporate (currently) off-budget resources into budgets
and maintain reasonable budgeting based on realistic revenue projections. Strengthen budget preparation processes
in all ministries

D e a l w i t h d o m e s t i c d e b t — Enforce the comprehensive plan on domestic debt agreed with the IMF.

EU standards
E u r o p e a n i n t e g r a t i o n — Implement a European integration strategy. Develop the capacity for progressive
legal harmonisation with the EU acquis and expand BiH's role in Community Assistance for Reconstruction,
Development and Stabilisation (CARDS) programming and implementation with the long-term aim of allowing
the decentralisation of assistance.

Internal market and trade
S i n g l e m a r k e t a n d b u s i n e s s — Demonstrate the effective functioning of the Competition Council and
the Entity Offices for Competition and Consumer Protection. Further strengthen the implementation of a consistent
and effective public procurement regime,
including the functioning of the Public Procurement Agency and the
Procurement Review body. Continue to ensure the free movement of goods and services within BiH. Ensure the full
functioning of the institutes 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).

T r a d e m a n a g e m e n t c a p a c i t y — Reinforce policy planning and negotiation capacities in the Ministry of
Foreign Trade and Economic Relations.

T r a d e s t a n d a r d s — Further develop the capacity of the State Veterinary Office and ensure the full func-
tioning of the Phytosanitary Office with a view to reaching EU standards. Create a regulatory environment for
technical standards, intellectual and industrial property rights in line with EU standards.

C u s t o m s a n d t a x a t i o n — 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 plan. 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 reduce progressively the level of tax fraud for both direct and indirect taxation.

Sectoral policies
P u b l i c b r o a d c a s t i n g — Fully implement a system-wide restructuring and modernisation plan that fully
accords with the Prime Minister's Agreement Maintain the independence of the Communications Regulatory
Agency.

I n t e g r a t e d e n e r g y m a r k e t — Ensure harmonisation of the regulatory environment for energy and the
establishment of a single State regulatory body, including the implementation of the law on the formation of ISO
and TRANSCO. Implement the commitments in the 2003 Athens Memorandum of Understanding.

E n v i r o n m e n t — Strengthen State-level capacity in the field of environment by ensuring the full functioning
of a State Environment Agency.

Cooperation in justice and home affairs
B o r d e r m a n a g e m e n t — 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. Facilitate regional
cooperation and trade by improving border management and transport facilities. Further develop cooperation
between the State Border Service, the customs service, the police and the Prosecutor's Office to interdict and
prosecute trafficking and other cross-border crime. Further implement the national anti-trafficking plan. Improve
the administrative capacity of the visa issuing regime, particularly the checking of visa applications.

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O r g a n i s e d c r i m e — Demonstrate full implementation of all measures agreed in the Action Plan against
Organised Crime presented at the Brussels JHA ministerial meeting of November 2003. Cooperate in an adequate
in security matters.
manner with the International Community,

including the European Union Police Mission,

M i g r a t i o n a n d a s y l u m — Consistently enforce the Law on the Movement and Stay of Aliens and Asylum.
Demonstrate effective national management of asylum and migration policies and monitor and report on
operations. Continue to negotiate and conclude readmission agreements.

4.

PROGRAMMING

Community assistance under the stabilisation and association process to the Western Balkan countries will be
provided by the relevant financial instruments, and in particular by Council Regulation (EC) No 2666/2000 of 5
December 2000 on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and
the Former Yugoslav Republic of Macedonia (1); accordingly, this Decision will have no financial implications. In
addition, BiH will have access to funding from multi-country and horizontal programmes. The Commission is
working with the European Investment Bank and the International Financial Institutions, in particular the European
Bank for Reconstruction and Development and the World Bank, with a view to facilitate the co-financing of
projects relating to the SAP.

5.

CONDITIONALITY

Community assistance under the SAP to the Western Balkan countries is conditional on further progress in
satisfying the Copenhagen political criteria. Failure to respect these general conditions 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
in particular as regards the recipient's undertaking to carry out democratic, economic and institutional
1997,
reforms, taking into account the priorities set out in this European Partnership.

6. MONITORING

The follow up of the European Partnership is ensured through the mechanisms established under the SAP, notably
the Annual Report on the SAP.

(1) OJ L 306, 7.12.2000, p. 1. Regulation as amended by Regulation (EC) No 2415/2001 (OJ L 327, 12.12.2001, p. 3).