COMMISSION STAFF WORKING DOCUMENT Bosnia and Herzegovina 2025 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 2025 Communication on EU enlargement policy
Date: 2025-11-04
Institutions: Directorate-General for Enlargement and Eastern Neighbourhood, European Commission
Subjects: Bosnia and Herzegovina, accession criteria, accession negotiations, pre-accession strategy, regional cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 4.11.2025  SWD(2025) 751 final  COMMISSION STAFF WORKING DOCUMENT Bosnia and Herzegovina 2025 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 2025 Communication on EU enlargement policy                                   {COM(2025) 690 final} - {SWD(2025) 750 final} - {SWD(2025) 752 final} - {SWD(2025) 753 final} - {SWD(2025) 754 final} - {SWD(2025) 755 final} - {SWD(2025) 756 final} - {SWD(2025) 757 final} - {SWD(2025) 758 final} - {SWD(2025) 759 final}  
 
 
CONTENTS 

1. INTRODUCTION ..................................................................................................................................................3 

1.1. 
CONTEXT ........................................................................................................................................................ 3 
1.2.  MAIN FINDINGS OF THE REPORT........................................................................................................................... 4 
1.3 ASSESSMENT OF THE IMPLEMENTATION OF THE STEPS SPECIFIED IN THE COMMISSION’S RECOMMENDATION FOR CANDIDATE 
STATUS  19 

2. 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ................................................................... 21 

2.1. 

2.2.  

2.2.1. 
2.2.2. 

FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM .................................................. 21 
2.1.1.  
Democracy ........................................................................................................................................ 21 
2.1.2. Public administration reform .................................................................................................................... 24 
RULE OF LAW AND FUNDAMENTAL RIGHTS ........................................................................................................... 27 
Chapter 23: Judiciary and fundamental rights .................................................................................. 27 
Chapter 24: Justice, freedom and security ........................................................................................ 44 
2.3. ECONOMIC CRITERIA .............................................................................................................................................. 54 
2.3.1. The existence of a functioning market economy ...................................................................................... 54 
2.3.2. The capacity to cope with competitive pressure and market forces within the EU .................................. 59 
2.4. PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL ........................................................................................ 60 
Chapter 5: Public procurement ........................................................................................................................... 60 
Chapter 18: Statistics .......................................................................................................................................... 61 
Chapter 32: Financial control ............................................................................................................................. 63 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION ................................................................... 64 

4.  ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP............................................................................ 66 

CLUSTER 2: INTERNAL MARKET ....................................................................................................................................... 66 
Chapter 1: Free movement of goods .................................................................................................................. 66 
Chapter 2: Freedom of movements for workers ................................................................................................. 67 
Chapter 3: Right of establishment and freedom to provide services .................................................................. 68 
Chapter 4: Free movement of capital ................................................................................................................. 68 
Chapter 6: Company law .................................................................................................................................... 69 
Chapter 7: Intellectual property law ................................................................................................................... 69 
Chapter 8: Competition policy ............................................................................................................................ 70 
Chapter 9: Financial services .............................................................................................................................. 71 
Chapter 28: Consumer and health protection .................................................................................................... 71 
CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH ..................................................................................................... 73 
Chapter 10: Digital transformation and media .................................................................................................. 73 
Chapter 16: Taxation .......................................................................................................................................... 74 
Chapter 17: Economic and monetary policy ....................................................................................................... 74 
Chapter 19: Social policy and employment ........................................................................................................ 75 
Chapter 20: Enterprise and industrial policy ...................................................................................................... 77 
Chapter 25: Science and research....................................................................................................................... 78 
Chapter 26: Education and culture ..................................................................................................................... 79 
Chapter 29: Customs union ................................................................................................................................ 80 
CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY ....................................................................................... 81 
Chapter 14: Transport policy .............................................................................................................................. 81 
Chapter 15: Energy ............................................................................................................................................. 82 

1 

 
 
 
Chapter 21: Trans-European Networks .............................................................................................................. 83 
Chapter 27: Environment and climate change ................................................................................................... 84 
CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION ....................................................................................................... 86 
Chapter 11: Agriculture and rural development ................................................................................................. 86 
Chapter 12: Food safety, veterinary and phytosanitary policy ........................................................................... 86 
Chapter 13: Fisheries and aquaculture ............................................................................................................... 87 
Chapter 22: Regional policy and coordination of structural instruments ........................................................... 88 
Chapter 33: Financial and budgetary provisions ................................................................................................ 89 
CLUSTER 6: EXTERNAL RELATIONS ................................................................................................................................... 90 
Chapter 30: External relations ............................................................................................................................ 90 
Chapter 31: Foreign, security and defence policy ............................................................................................... 90 
ANNEX I – RELATIONS BETWEEN THE EU AND BOSNIA AND HERZEGOVINA .............................................................................. 93 

2 

 
 
 
 
 
1. INTRODUCTION1 

1.1. 

CONTEXT  

Bosnia and Herzegovina applied for EU membership in February 2016. The Commission adopted an 
Opinion2  on  the  membership  application  in  May  2019,  setting  out  14  key  priorities.  In  December 
2022,  the  European  Council  granted  Bosnia  and  Herzegovina  candidate  country  status3  on  the 
understanding that  eight steps specified  in the  Commission’s recommendation4  are taken.  Following 
the Commission’s recommendation5, the European Council decided in March 2024 to open accession 
negotiations with Bosnia and Herzegovina. The European Council invited the Commission to prepare 
the negotiating framework with a view to its adoption by the Council the moment all relevant steps set 
out in the Commission’s recommendation of October 2022 have been taken6.  

Although  the  authorities  of  Bosnia  and  Herzegovina  continued  to  publicly  declare  their  political 
commitment to the strategic goal of European integration, the reform dynamic stalled in the reporting 
period, and only a very limited number of reforms were adopted (laws on border control and on data 
protection, and Frontex status agreement). Bosnia and Herzegovina has to return its focus to adopting 
reforms in line with the EU acquis and European standards, addressing all the relevant steps.  

The  reporting  period  was  marked  by  severe  political  tensions  and  escalation,  particularly  from  the 
Republika Srpska entity, that run  counter to the EU path of Bosnia and Herzegovina. Following the 
first-instance  criminal  conviction  of  Republika  Srpska  entity  President  Milorad  Dodik,  the  entity 
assembly adopted laws undermining the constitutional and legal order of Bosnia and Herzegovina, the 
functionality  of  State  institutions,  and  fundamental  rights.  These  laws  were  later  repealed  by  the 
Constitutional Court of Bosnia and Herzegovina. Following a criminal conviction in appeal, Milorad 
Dodik  was  removed  from  office  and  an  interim  President  appointed;  early  elections  for  the  entity 
president  are  scheduled  for  23  November  2025.  Following  the  end  of  the  ruling  coalition,  lengthy 
negotiations and untimely conditions to form a new government did not lead to a reshuffle, hindering 
the functioning of the executive and legislature in the reporting period.  

Bosnia  and  Herzegovina  showed  some  engagement  towards  implementing  the  Growth  Plan  for  the 
Western  Balkans  across  its  four  pillars  of:  (i)  gradual  integration  with  the  EU  single  market;  (ii) 
regional economic integration; (iii) fundamental reforms; and (iv) increased financial support.  In the 
absence of a Reform Agenda, in July 2025 the European Commission reduced by 10% the indicative 
allocation for the country. Bosnia and Herzegovina adopted a Reform Agenda and submitted it to the 
European Commission for agreement in September 2025.  

1.2.  MAIN FINDINGS OF THE REPORT  

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS  

Democracy  

1 This report covers the period from 1 September 2024 to 1 September 2025. It is based on input from a variety 
of  sources,  including  contributions  from  the  government  of  Bosnia  and  Herzegovina,  EU  Member  States, 
European Parliament reports and information from various international and non-governmental organisations. It 
also includes the results of comparative assessments and indices produced by other stakeholders, in particular in 
the area of rule of law.  
The  report  uses  the  following  assessment  scale  to  describe  the  state  of  play:  early  stage,  some  level  of 
preparation,  moderately  prepared,  good  level  of  preparation  and  well  advanced.  To  describe  progress  made 
during  the  reporting  period,  it  uses  the  following  scale:  backsliding,  no  progress,  limited  progress,  some 
progress, good progress and very good progress. Where appropriate, interim steps have also been used. 
2 SWD (2019) 222 final, COM(2019) 261 final. 
3 European Council conclusions, 15 December 2022. 
4 COM(2022) 528 final. 
5 COM(2024) 129 final. 
6 European Council conclusions, 21 and 22 March 2024, paragraph 30. 

3 

 
 
 
The general framework for elections requires substantial reforms. Constitutional reforms are needed to 
ensure  political  equality  and  non-discrimination  for  all  citizens.  Electoral  integrity  needs  to  be 
improved,  in  line  with  recommendations  of  international  bodies.  Political  parties  should  respect  the 
independence of the Central Electoral Commission (CEC).  

Parliament  can  exercise  its  powers  in  only  a  partially  effective  way.  Legislative  output  decreased. 
Oversight over the executives also remained weak. The Republika Srpska entity assembly adopted in 
February  several  laws  in  breach  of  the  legal  and  constitutional  order,  which  were  subsequently 
repealed in May by the Constitutional Court. 

Governance  is  increasingly  unsatisfactory.  Presidency  members  continued  to  present  diverging 
stances. The functioning of the Council of Ministers deteriorated with the end of the ruling coalition, 
and  a  new  Minister  of  Security  remains  to  be  appointed.  The  executives  have  little  capacity  for 
coordination  and  policy  planning.  Independent  institutions  remain  weak.  All  levels  of  government 
show signs of political capture, directly affecting the daily life of citizens. The Republika Srpska entity 
should  fully  recognise  and  enforce  the  decisions  of  the  Constitutional  Court  of  Bosnia  and 
Herzegovina and swiftly appoint judges to the two vacant positions on the Constitutional Court. 

The institutions in charge of the EU integration process are broadly in place. The Council of Ministers 
needs  to:  (i)  strengthen  the  role  of  the  Directorate  for  European  Integration  (DEI);  (ii)  develop  a 
national programme for the adoption of the EU acquis (NPAA); (iii) facilitate policy dialogue within 
the Stabilisation and Association Agreement (SAA) bodies; and (iv) urgently appoint the national IPA 
coordinator  (NIPAC)  under  the  Instrument  for  Pre-accession  (IPA)  III.  Following  the  European 
Council  decision  to  open  accession  negotiations,  the  country  needs  to  appoint  an  operational  chief 
negotiator with a view to the screening process. 

Civil society organisations operate in a constrained environment. In particular, in the Republika Srpska 
entity,  criminal  penalties  for  defamation  and  a  new  law  targeting  civil  society  groups  as  ‘foreign 
agents’  (subsequently  repealed  by  the  Constitutional  Court)  further  restricted  the  space  for  civil 
society. Bosnia and Herzegovina needs to ensure meaningful and systematic consultations with civil 
society as part of an inclusive policy dialogue and adopt a framework for the transparent funding of 
civil  society  organisations,  thus  ensuring  an  enabling  environment  for  civil  society  (Opinion  key 
priority 11). 

Public administration reform  

Bosnia  and  Herzegovina  is  between  an  early  stage  of  preparation  and  having  some  level  of 
preparation  in  public  administration  reform.  It  made  limited  progress  in  this  area  during  the 
reporting  period,  in  particular  by:  (i)  developing  a  new  action  plan  for  2023-2027,  now  pending 
adoption; and (ii) continuing to implement at all levels the strategy for the reform of public financial 
management.  Reforms  to  the  country’s  revenue  administration  also  improved  tax  collection.  On  the 
civil service, the Federation entity government and its cantons continued to implement the 2022-2027 
strategy for the development of human resource management and  to develop transparent monitoring 
on human resources. Bosnia and Herzegovina needs to complete essential steps to improve the overall 
functioning of its public administration by ensuring both a professional and depoliticised civil service, 
and a coordinated, countrywide approach to policymaking (Opinion key priority 14). 

The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  adopt  and  start  implementing  a  credible  and  relevant  action  plan  for  the  2023-2027  strategic 
framework  on  public  administration  reform  at  each  level  of  government,  increasing  budgetary 
funds  for  the  implementation  of  this  action  plan;  and  strengthen  the  capacities  of  public 
administration reform coordinators at all levels; 

→  ensure coordinated and well-harmonised legislative alignment with the EU acquis across all levels 
of government in particular by adopting the outstanding legal framework for countrywide sectoral 
strategic planning at State level; 

4 

 
 
→  amend and adopt civil service laws in line with the principle of merit-based employment at State, 

entity and cantonal level. 

Chapter 23: Judiciary and fundamental rights  

Bosnia and  Herzegovina  has  some level  of  preparation  to  implement  the  EU  acquis  and  European 
standards  in  the  area  of  the  judiciary  and  fundamental  rights.  No  progress  was  made  during  the 
reporting period, including on addressing the related Opinion key priorities.  

Functioning of the judiciary  

Bosnia  and  Herzegovina  is  between  an  early  stage  of  preparation  and  having  some  level  of 
preparation and no progress was made on the functioning of the judiciary (Opinion key priority 6), 
including on addressing the findings of the expert report on rule of law issues (the ‘Priebe Report’)7. 
The  poor  functioning  of  the  judicial  system  continued  to  undermine  citizens’  rights  and  the  fight 
against corruption.  Legislative  reforms and  integrity checks  are  key to  rebuilding  public trust  in  the 
justice  system.  The  Republika  Srpska  entity  is  expected  not  to  implement  any  law  repealed  by  the 
Constitutional Court, in particular the law on a separate judiciary council.  

The Commission’s recommendations from last year were not met and thus remain valid. In the coming 
year, Bosnia and Herzegovina should in particular: 

→  urgently  appoint  judges  to  the  vacant  positions  on  the  Constitutional  Court,  ensuring  its  full 
composition and functioning; and, for the courts in general, consistently appoint judges based on 
merit,  without  prevalence  of  ethnic  criteria,  and  appraise  the  performance  of  judges  based  on 
quality criteria; 

→  finalise and adopt a Law on the High Judicial and Prosecutorial Council (HJPC) and a Law on the 
Courts  of  Bosnia  and  Herzegovina  in  line  with  Venice  Commission  recommendations,  also 
ensuring  the  access  of  the  HJPC  to  all  information  necessary  to  perform  integrity  checks;  fully 
implement the integrity-related provisions of the Law on the HJPC to establish a robust system of 
asset declaration verification under close external monitoring;  

→  adopt a new justice sector reform strategy; complete the registration of sentences of international 
criminal tribunals in domestic criminal records; and implement effectively the revised national war 
crimes strategy, particularly by boosting regional cooperation. 

Fight against corruption  

Bosnia  and  Herzegovina  is  between  an  early  stage  of  preparation  and  having  some  level  of 
preparation in the fight against corruption (Opinion key priority 7). No progress was made. Political 
authorities  failed  to  tackle  widespread  corruption  and  actively  obstructed  progress,  leading  to  long-
term  stagnation  and  increasing  signs  of  State  capture.  The  State-level  Law  on  the  prevention  of 
conflict of interest is still not implemented effectively. The Federation entity finally set up specialised 
anti-corruption departments, after 11 years of delay. Anti-corruption legislation is still not harmonised 
across the country. No action was taken to remedy operational inefficiency and political interference 
(including pressure and intimidation) which have led to selective and non-transparent judicial follow-
up to corruption cases of public resonance. As a result, the track record on fighting corruption remains 
weak,  with  very  few  convictions,  in  particular  in  high-level  cases.  Rules  on  conflicts  of  interest, 
verification of asset declarations and protection of whistle-blowers either do not exist or continue not 
to  be  enforced  effectively  across  the  country.  The  Sarajevo  Canton  demonstrated  tangible  results  in 
these areas. Targeted risk assessments and dedicated measures are needed to address corruption in the 
most vulnerable sectors.  

The  Commission's  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Bosnia and Herzegovina should in particular: 

7 The ‘Priebe Report’ is available online on the website of the EU Delegation to Bosnia and Herzegovina.  

5 

 
 
 
→  complete  the  legislative  and  institutional  framework  across  the  country  in  line  with  European 
standards  and  step  up  implementation  of  the  rules  on  prevention  of  conflicts  of  interest  and  the 
protection of whistle-blowers;  

→  demonstrate progress towards establishing a track record of proactive investigations, prosecutions 
and convictions in high-level corruption; in this context, improve cooperation between the police 
and prosecutors’ offices; 

→  professionalise corruption prevention bodies across the country by ensuring their permanent status 

and upholding their financial and operational independence. 

Fundamental rights  

The  general  framework  for  fundamental  rights  is  largely  in  place  but  needs  to  be  improved.  The 
country needs to urgently adopt constitutional and electoral reforms to ensure that all citizens are able 
to effectively exercise their political rights, notably bring the country’s Constitution into line with the 
Sejdić-Finci case law of the European Court of Human Rights (Opinion key priority 4.f), as well as 
implement  relevant  decisions  of  the  Constitutional  Court.  Further  progress  is  required  across  key 
priorities  9-13.  In  March  2025  the  Federation  entity  adopted  a  Law  on  protection  from  domestic 
violence  and  violence  against  women,  and  amended  its  criminal  code  in  July  2025,  improving 
alignment  with  the  Istanbul  Convention  and  the  EU  acquis.  In  February  2025  the  Republika  Srpska 
adopted a law targeting civil society groups as ‘foreign agents’, which undermined fundamental rights 
and was repealed by the Constitutional Court in May. The Constitutional Court’s decision needs to be 
respected.  

The Commission’s recommendations from last year have not been implemented and remain valid. In 
the coming year, Bosnia and Herzegovina should in particular:  

→  implement court rulings to end divided education (‘two schools under one roof’); 

→  ensure  full  respect,  protection  and  promotion  of  the  freedom  of  assembly,  association  and 
expression, and refrain from actions that may adversely impact the exercise of these freedoms; 

→  harmonise  and  improve  legislation  against  domestic  and  gender-based  violence  to  meet 
international standards and align laws across the country with the Gender Equality Law to increase 
the public and political participation of women.  

Freedom of expression  

There is some level of preparation in the area of freedom of expression. No progress was achieved 
during the reporting period, including in guaranteeing freedom of expression and of the media, and the 
protection  of  journalists  (Opinion  key  priority  12). Bosnia  and  Herzegovina  continues  to  experience 
deep stagnation in media freedom, with worrying signs of deterioration. The financial sustainability of 
public  broadcasters  is  ever  more  in  danger.  A  countrywide  network  was  set  up  to  monitor  cases  of 
violence against journalists. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Bosnia and Herzegovina should, in particular:  

→  ensure the protection of journalists and systematic institutional follow-up to threats and violence 

against them;  

→  ensure the financial sustainability and political independence of public broadcasters and harmonise 

entity legislation with the State-level Law on the public broadcasting system;  

→  adopt legislation on both transparency in media ownership and criteria for public advertising; and 

ensure that defamation is decriminalised across the country.  

Chapter 24: Justice, freedom and security  

Bosnia and Herzegovina has some level of preparation in the area of justice, freedom and security. 

6 

 
 
Some progress was made in this area, including on Opinion key priorities 7 and 8, in particular with: 
(i)  the  adoption  of  the  Law  on  border  control  and  the  Law  on  personal  data  protection;  (ii)  the 
signature of the roadmap for cooperation with the European Union Agency for Asylum (EUAA) and 
the signature of the Frontex status agreement; and (iii) the adoption of the strategy and action plan on 
integrated border management. Migration management continued to improve. While broadly aligned 
with  the  EU  acquis,  legislation  is  often  not  harmonised  across  the  country,  and  institutional 
cooperation and coordination remain weak, leading to uneven implementation.  

The Commission’s recommendations from last year were partially implemented and therefore remain 
broadly valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  take  over  responsibility  for  managing  migration,  including  by  adopting  and  implementing  a 
comprehensive transition plan on migration management and the rulebook on the management of 
reception centres; guarantee access to quality and effective asylum procedures;  

→  adopt  the  action  plan  on  fighting  trafficking  in  human  beings  and  amend  legislation  on  migrant 

smuggling;  

→  further align with EU visa policy, in particular for non-EU countries presenting irregular migration 
or  security  risks  to  the  EU,  develop  a  passenger  data-exchange  (API)  system,  and  introduce 
security measures to better screen visa-free arrivals. 

Fight against serious and organised crime 

Bosnia  and  Herzegovina  is  between  an  early  stage  of  preparation  and  having  some  level  of 
preparation in the fight against serious and organised crime. Some progress was made, in particular 
with: (i) the adoption of the strategy on trafficking in human beings and the strategy and action plan on 
small  arms  and  light  weapons  (SALW);  and  (ii)  enforcement  operations  supported  by  Europol. 
However,  systemic  shortcomings  continue  to  hinder  the  operational  cooperation  and  investigative 
capacity  of  law-enforcement  agencies  due  to  fragmented  criminal  legislation,  poor  institutional 
coordination  and insufficient resources.  Financial  investigations and asset  seizures  and  confiscations 
remain insufficient. A proactive approach is essential to stop criminal infiltration in the political, legal 
and economic systems, and to tackle the political capture of law-enforcement institutions.  

The Commission’s recommendations from last year were partially implemented, and therefore remain 
broadly valid. In the coming year, Bosnia and Herzegovina should in particular:  

→  establish specialised multi-agency investigation teams for complex cases; set up an asset recovery 
office and put in place capacities for the management of crime proceeds at State level; strengthen 
financial investigations;  

→  improve civilian oversight mechanisms over all police forces; consistently appoint police directors 

based on merit;  

→  further  align  the  legislation  to  combat  terrorism,  possession  of  weapons  by  civilians,  and 
explosives  with  the  EU  acquis;  establish  a  firearms  focal  point;  establish  a  list  of  criminalised 
psychoactive substances.  

ECONOMIC CRITERIA 

The existence of a functioning market economy  

Bosnia and Herzegovina is at an early stage of preparation – and there was no progress during the 
reporting period – in establishing a functioning market economy. Economic activity remained resilient 
despite  a  deteriorating  political  situation,  with  GDP  growth  slowing  down  to  2.6%  in  2024,  and  to 
about  1.7%  in  the  first  half  of  2025.  Employment  growth  decelerated  further,  while  a  significant 
outflow  of  workers  from  the  country  continued  to  result  in  labour  shortages  and  created  upward 
pressure  on  wages.  Economic  and  fiscal  governance  deteriorated  as  a  result  of  politically  motivated 
blockages  in  policy  implementation,  a  very  short-term-oriented  policy  approach  and  a  deteriorating 
cooperation. The business environment continues to suffer from a highly fragmented internal market 

7 

 
 
and a deterioration in the rule of law. Political  stalemate continued to delay necessary decisions and 
structural reforms that would have been needed to improve the functioning of the market economy. 

Last year’s Commission recommendations remain valid. In the coming year, Bosnia and Herzegovina 
should in particular: 

→  improve  the  business  environment  by  both:  (i)  simplifying  business  registration  and  licencing 
procedures;  and  (ii)  harmonising  and  mutually  recognising  licences  and  certificates  between 
entities;  

→  strengthen  countrywide  regulatory  and  supervisory  institutions,  bolster  analytical  and  policy 
formulation capacity and publish complete and consistent countrywide data in a timely manner, in 
particular on public finances; 

→  increase  the  transparency  and  efficiency  of  the  public  sector,  in  particular  by  putting  in  place  a 
framework for better and depoliticised governance; and clarify the constitutional  competence for 
setting up a registry of bank accounts of private individuals, in line with the EU acquis. 

The capacity to cope with competitive pressure and market forces within the EU  

Bosnia  and  Herzegovina  is  between  an  early  stage  of  preparation  and  having  some  level  of 
preparation in its capacity to cope with competitive pressure and market forces in the EU. It made no 
progress in this area during the reporting period. The overall quality of education remains inadequate. 
The country continues to lag behind in the energy and digital transitions. Economic integration with 
the EU remains high, but overall trade with the EU is below potential.  

The  implementation  of  last  year’s  recommendations  has  remained  limited,  and  therefore  last  year’s 
recommendations  remain  valid.  To  support  long-term  growth,  Bosnia  and  Herzegovina  should  in 
particular: 

→  improve the quality of education and training, in particular by accelerating the modernisation of 

curricula to better match skills with labour market needs;  

→  increase  government  capital  spending  as  a  percentage  of  GDP,  in  particular  by  focusing  on 

transport and energy infrastructure and improving environmental standards;  

→  improve  the  management  of  public  investment  and  accelerate  the  implementation  of  investment 

projects that have undergone a clear, positive cost-benefit assessment. 

Chapter 5: Public procurement 

Bosnia and Herzegovina has some level of preparation in public procurement. Limited progress was 
made  in  this  area  during  the  reporting  period  by  putting  in  place  a  strategic  framework  on  public 
procurement. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Bosnia and Herzegovina should in particular: 

→  further align the Law on public procurement with the EU public procurement  acquis; develop a 
roadmap to harmonise the legal framework on public-private partnership and concessions with EU 
standards, including measures for improved coordination; 

→  develop the e-procurement system and increase its use to ensure transparency; 

→  increase staffing levels and strengthen capacity in the Public Procurement Agency and the Public 

Procurement Review Body. 

Chapter 18: Statistics 

Bosnia and Herzegovina is at an early stage of preparation on statistics. Limited progress was made 
in the reporting period, mainly in the areas of information and communication technology (ICT) and 
environmental statistics. Bosnia and Herzegovina should improve cooperation, coordination, decision-

8 

 
 
making processes and the legal basis to develop the national statistical system, and ensure progress in 
key areas. 

The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  conduct the agricultural census;  

→  adopt a roadmap for preparing the next population and housing census; 

→  finalise  the  classification  of  regions  equivalent  to  the  NUTS  classification  (nomenclature  of 

territorial units for statistics). 

Chapter 32: Financial control 

Bosnia  and  Herzegovina  has  some  level  of  preparation  in  financial  control.  There  was  limited 
progress  during the reporting  period  in improving the  effectiveness  and  productivity of:  (i)  internal 
audit  functions;  (ii)  risk  management;  and  (iii)  irregularity  management.  External  audit  institutions 
improved  their  outreach  activities  in  the  reporting  period,  but  parliamentary  scrutiny  of  the 
implementation of recommendations needs to be improved. 

The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  improve  managerial  accountability  by 

the  delegation  of  decision-making 
responsibilities  to  senior  civil  servants  at  entity  level  and  implementing  related  regulations    at 
State level more effectively; 

introducing 

→  set  up  and  improve  the  oversight  function  for  identifying  fiscal  risk  in  public  companies, 
particularly  at  entity  level,  and  ensure  data  collection  on  the  public  internal  financial  control 
(PIFC) of public companies at all levels of government via the relevant IT application; 

→  improve  the  implementation  of  State  audit  recommendations  via  stronger  coordination  among 

parliaments, audit authorities and governments at State and entity level. 

CLUSTER 2: INTERNAL MARKET 

Chapter 1: Free movement of goods 

Bosnia  and  Herzegovina  is  at  an  early  stage  of  preparation  on  the  free  movement  of  goods.  No 
progress was made in this area during the reporting period. 

The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  draw up a list of technical regulations on the free movement of goods that are currently in force 
and start to repeal legislation and standards across the country that conflict with EU legislation and 
European standards in this area; 

→  adopt a countrywide strategy for quality infrastructure; 

→  examine all existing legislation and administrative practices in the non-harmonised area to assess 
whether they comply with Articles 34-36 of the Treaty on the Functioning of the European Union 
and plan how to address all non-compliant elements. 

Chapter 2: Freedom of movements for workers 

Bosnia and Herzegovina has some level of preparation in the freedom of movement for workers. No 
progress  was  made  in  this  area  due  to  the  fragmentation  of  social  security  schemes,  limited 
administrative capacity, and lack of cooperation among authorities. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
9 

 
 
 
In the coming year, Bosnia and Herzegovina should in particular: 

→  start developing a countrywide database on vacancies; 

→  continue negotiating and concluding new bilateral agreements on social security, particularly with 

EU Member States. 

→  start preparing for the alignment of legislation with the EU acquis on free movement of workers, 
access for EU citizens to the labour market and on equal treatment of EU citizens with nationals in 
the labour market. 

Chapter 3: Right of establishment and freedom to provide services 

Bosnia  and  Herzegovina  is  at  an  early  stage  of  preparation  on  the  right  of  establishment  and  the 
freedom to provide services. No progress was made in this area during the reporting period.  

The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  develop  and  adopt  a  countrywide  law  on  services  that  is  fully  aligned  with  the  EU  Services 
Directive, including by setting up a point of single contact; and remove the remaining barriers to 
setting up a single economic space; 

→  finalise and adopt a countrywide strategy and a countrywide law on postal services aligned with 
the  EU  acquis  to  gradually  open  the  postal  services  market  to  competition,  and  strengthen 
institutional capacity to ensure compliance with new rules on the postal market; 

→  align  legislation  with  the  EU  acquis  on  mutual  recognition  of  professional  qualifications, 
including with the Directive on recognition of professional qualifications and with the Directive 
on a proportionality test, before regulating any new profession. 

Chapter 4: Free movement of capital 

Bosnia and Herzegovina is moderately prepared in the area of free movement of capital. There was 
no progress in aligning with the EU acquis in this area during the reporting period. 

The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  expand  the  scope  of,  simplify  procedures  for,  and  reduce  administrative  requirements  related  to 
short-term capital transactions, and amend its legislation to comply with SAA commitments on the 
acquisition of real estate by EU citizens; 

→  set up a countrywide central register of beneficial ownership of corporate and other legal entities, 

in line with the EU acquis; 

→  adopt legislation to align with the Payment Services Directive 2, the Electronic Money Directive 2 

and the Single Euro Payment Area (SEPA) Regulation. 

Chapter 6: Company law 

Bosnia and Herzegovina has some level of preparation in the area of company law. No progress was 
made in this area during the reporting period. Further efforts are needed to align with the EU  acquis 
and  to  harmonise  requirements  across  the  country.  Different  regional  business  registers  operate 
independently  and  without  coordination.  There  is  still  no  single  countrywide  supervisory  body  to 
oversee statutory auditors. 

The Commission’s recommendations from last year were not implemented during the reporting period 
and therefore remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  finalise  the  review  of  existing  legislation  on  company  law  to  identify  amendments  needed  to 

further align with the EU acquis; 

10 

 
 
→  improve the connection  and  coordination  of  business  registers among the  entities  and the  Brčko 

District; 

→  finalise the review of all the existing legislation on financial reporting, transparency, and statutory 

audit to identify the legislative amendments necessary to align with the EU acquis. 

Chapter 7: Intellectual property law 

Bosnia and Herzegovina is moderately prepared on intellectual property law. No progress was made 
in  this  area  during  the  reporting  period.  Although  some  preparations  started  during  the  reporting 
period, more efforts are required to align legislation with the EU acquis and improve enforcement and 
coordination.  

The  Commission’s  recommendations  from  last  year  were  not  met  during  the  reporting  period  and 
remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  adopt and implement a new strategy on intellectual property and implement the existing strategy 

on the enforcement of intellectual property rights (IPRs); 

→  further align the legal framework on copyright and related rights with the EU acquis;  

→  amend the Law on patents, trade marks and trade secrets to align it with the EU acquis. 

Chapter 8: Competition policy 

Bosnia  and  Herzegovina  has  some  level  of  preparation  on  competition  policy.  There  was  no 
progress  in  this  area  during  the  reporting  period.  The  country  has  not  yet  removed  ethnic-based 
decision-making procedures and vetoes from the Competition Council and State Aid Council (Opinion 
key priority 4.g). 

The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  amend the Law on competition and the Law on State aid to revise decision-making procedures in 

order to remove ethnic-based veto rights in line with the EU acquis; 

→  improve the enforcement record on State aid by ensuring that State aid measures are notified by 

the granting authorities to the State Aid Council before they are approved; 

→  in  line  with  the  SAA,  ensure  that  the  State  Aid  Council  operates  independently  and  align  the 

existing aid schemes with the EU acquis. 

Chapter 9: Financial services 

Bosnia and Herzegovina is between having some and a moderate level of preparation on financial 
services. There was no progress in this area during the reporting period. Coordination in supervision 
and enforcement needs to significantly improve. 

The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  continue the work towards full alignment of its banking regulations with the EU acquis; 

→  continue  efforts  to  align  with  the  EU  acquis  its  regulation  on  non-banking  sectors,  including 

insurance, investment funds, securities markets and financial market infrastructures; 

→  introduce  consolidated  supervision  of  banking  groups  and  overall  financial  holdings  across  the 

whole country. 

Chapter 28: Consumer and health protection 

Bosnia  and  Herzegovina  is  at  an  early  stage  of  preparation  on  consumer  protection  and  public 
health. No progress was made in this area during the reporting period. 

11 

 
 
The Commission’s recommendations from last year were not implemented during the reporting period 
and remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  further align the State-level Law on consumer protection and product safety with the EU acquis; 

→  align its tobacco-control legislation with the EU acquis at all levels of government and enforce it, 

and urgently ratify the protocol to eliminate the illicit trade in tobacco products; 

→  further align State-level legislation with the EU acquis on all health-related issues, most urgently 
on substances of human origin and on human and veterinary medicinal products as well as in the 
area of e-Health, and put in place an oversight system to ensure efficient coordination across the 
whole country. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

Chapter 10: Digital transformation and media 

Bosnia and Herzegovina is at an early stage of preparation on digital transformation and media. No 
progress was achieved in this area.  

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  complete  phase  two  of  the  digital  switchover  and  adopt  a  framework  strategy  for  access  to  the 

broadband network; 

→  develop and adopt a law on electronic identity and trust services for electronic transactions, in line 
with  the  EU  Digital  Identity  Framework  Regulation;  and  develop  a  legislative  framework  on 
cybersecurity in line with the EU acquis;  

→  develop and adopt a law on electronic communications and electronic media in line with the EU 

acquis. 

Chapter 16: Taxation 

Bosnia and Herzegovina has some level of preparation on taxation. No progress was achieved in this 
area. Countrywide harmonisation remains insufficient, hindering progress towards a single economic 
space. Bosnia and Herzegovina should avoid any further deviation from the EU acquis in this area. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Bosnia and Herzegovina should in particular: 

→  bring  in  line  with  the  EU  acquis  its  legislation  on  value  added  tax  (VAT)  and  excise  duties, 

particularly on beer and on energy products; 

→  reduce  the  administrative  burden  related  to  electronic  signature  (e-signature)  functionality  to 

ensure the countrywide interoperability of taxation services; 

→  start  preparations  for  interconnection  and  interoperability  with  the  common  EU  IT  systems  for 

taxation. 

Chapter 17: Economic and monetary policy 

Bosnia and Herzegovina is at an  early stage of preparation  on economic and monetary policy. No 
progress  was  made  in  this  area  during  the  reporting  period.  Cooperation  and  coordination  of 
macroeconomic  and  fiscal  policies  remain  a  challenge,  as  evidenced  by  the  difficulties  in  preparing 
and  carrying  out  the  Economic  Reform  Programme  (ERP).  Monetary  policy  underpins  economic 
stability, but the full independence of the Central Bank has yet to be ensured. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

12 

 
 
 
→  maintain  the  integrity  of  the  currency  board  arrangement  and  ensure  the  Central  Bank’s  full 

independence; 

→  further strengthen the analytical capacities of all institutions responsible for fiscal accounting and 
planning, and improve procedures for preparing the ERP in order to ensure timely submission and 
compliance with the requirements; 

→  adopt the global fiscal framework and the budgets of all levels of government in a timely manner. 

Chapter 19: Social policy and employment 

Bosnia and Herzegovina has some level of preparation on social policy and employment. There was 
no progress in this area. Serious challenges remain to be addressed in employment, social dialogue, 
social inclusion,  social  protection,  and reducing  poverty.  The  country  should  continue  aligning  with 
the EU acquis on non-discrimination and equality, including gender equality. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  adopt a countrywide employment strategy, putting in place additional capacity for implementation 

and monitoring;  

→  finalise  and  adopt  the  Youth  Guarantee  implementation  plan  in  line  with  the  EU  model  and 

guidance, and prepare for piloting the plan to start in 2026;  

→  introduce a uniform minimum level of benefits and protection for maternity leave throughout the 

country, starting by harmonising the definitions of maternity, paternity and parental leave. 

Chapter 20: Enterprise and industrial policy 

Bosnia  and  Herzegovina  remains  at  an  early  stage  of  preparation  in  the  area  of  enterprise  and 
industrial  policy.  Limited  progress  was  made  in  this  area  during  the  reporting  period  with  the 
adoption  and  implementation  of  legislation  on  entrepreneurial  infrastructure  in  the  entities  and  in 
Brčko District. The investment environment remains unsatisfactory. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  adopt  regulation  allowing  for  the  mutual  recognition  of  licences  and  certificates  between  the 
entities and ensure that e-registration of companies and business registries across the country are 
interconnected and fully operational, including e-signature/e-stamps; 

→  take first steps towards aligning with the late payments directive; 

→  accelerate  improvements  to  the  investment  environment  to  attract  sustainable  investments  that 

integrate with the domestic industrial base. 

Chapter 25: Science and research 

Bosnia  and  Herzegovina  has  some  level  of  preparation  on  science  and  research.  No  progress  was 
made in this area during the reporting period. Research capacities remain very limited.  

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  develop a new strategy and action plan for scientific development and develop and adopt a smart 

specialisation strategy; 

→  improve participation in the Horizon Europe programme; 

→  improve  reporting  on  research  and  innovation  statistics  by  reporting  on  at  least  24  European 

Innovation Scoreboard indicators. 

13 

 
 
Chapter 26: Education and culture 

Bosnia  and  Herzegovina  is  at  an  early  stage  of  preparation  on  education  and  culture.  There  was 
limited progress in this area during the reporting period. A draft qualifications framework was drawn 
up  in  December  2024.  The  Council  of  Ministers  adopted  in  December  2024  an  action  plan  for 
improving quality assurance in education. Bosnia and Herzegovina needs to ensure a fully functional 
system  of  accreditation  and  re-accreditation  of  higher  education  institutions  and  study  programmes 
across the country. Bosnia and Herzegovina did not regularly participate in  international assessment 
studies in the past five years. 

The  Commission’s  recommendations  from  last  year  were  partly  implemented  and  therefore  remain 
broadly valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  develop  a  national  qualifications  framework  (NQF)  referenced  to  the  European  qualifications 

framework; 

→  implement  the  action  plan  to  improve  quality  assurance  with  a  view  to  joining  the  European 

Association for Quality Assurance (ENQA);  

→  ensure  continued  participation  in  international  assessment  studies8,  intensifying  preparations  to 
join the 2029 Programme for International Student Assessment (PISA) and implement findings to 
improve PISA results. 

Chapter 29: Customs union 

Bosnia and Herzegovina has some level of preparation on customs union. There was some progress 
in  this  area  during  the  reporting  period  related  to  the  preparation  to  join  the  Common  Transit 
Convention. Customs legislation is not fully aligned with the EU acquis. 

The Commission’s recommendations from last year were partially implemented and therefore remain 
valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  continue  preparations  to  apply  the  common  transit  procedure;  connect  its  transit  system  to  the 
common IT infrastructure of the new computerised transit system; and start preparations towards 
achieving interconnection and interoperability of its customs IT systems with the EU’s electronic 
customs environment;  

→  strengthen  the  administrative  and  operational  capacity  of  the  Indirect  Taxation  Authority  and 
combating  customs  fraud,  in  particular  smuggling  of  tobacco  products,  by  cooperating  with  the 
European Anti-Fraud Office (OLAF); 

→  increase  post-clearance  checks  based  on  risk  analysis,  expand  use  of  simplified  procedures  for 
reliable  economic  operators  and  upgrade interconnectivity  and  interoperability with the  EU’s  IT 
systems and requirements. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY 

Chapter 14: Transport policy 

Bosnia  and  Herzegovina  has  some  level  of  preparation  in  transport  policy.  No  progress  was 
achieved in the reporting period in this area. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  set up a lead agency for road safety and a countrywide system to collect data on road crashes; 

8  Programme  for  International  Student  Assessment  –  PISA,  Trends  in  International  Mathematics  and  Science 
Study  –  TIMSS,  Progress  in  International  Reading  Literacy  Study  –  PIRLS,  International  Computer  and 
Information Literacy Study – ICILS, Teaching and Learning International Survey – TALIS. 

14 

 
 
 
 
→  bolster the independence of, strengthen the capacity of, and ensure sufficient funding for all bodies 

at State and entity level in the area of transport; 

→  adopt  a  strategic  framework  and  legislation  to  implement  intelligent  transport  systems  (ITS)  in 

road transport. 

Chapter 15: Energy 

The country remains at an early stage of preparation on energy. No progress was made in this area 
during the reporting period. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  adopt gas and electricity laws and bylaws at State and entity levels in compliance with the EU’s 
third energy package, adopt and implement the electricity integration package, and ensure the full 
alignment  of  entity-level  laws  on  electricity  and  gas  to  ensure  coupling  with  the  EU  electricity 
market; 

→  adopt State-level legislation and improve entity-level legislation on renewable energy and energy 

efficiency in line with the requirements of the Energy Community Treaty; 

→  adopt the  national energy and climate plan (NECP) 2021-2030, in line with  Energy Community 

targets. 

Chapter 21: Trans-European networks 

Bosnia  and  Herzegovina  has  some  level  of  preparation  on  trans-European  networks.  There  was 
limited  progress  in  this  area  during  the  reporting  period,  mainly  with  the  continuation  of  works  
across  six  sections  of  the  Corridor  Vc  motorway.  There  was  no  development  during  the  reporting 
period in the area of energy networks.  

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  continue  developing  the  planned  extension  of  the  TEN-T  and  TEN-E  networks  in  line  with  the 

identified priorities; 

→  accelerate  the  implementation  of  connectivity  reform  measures  and  continue  to  regularly  adopt 

amended multiannual maintenance plans for the road and rail core networks; 

→  align its legislation with the EU acquis on guidelines for trans-European energy infrastructure. 

Chapter 27: Environment and climate change 

Bosnia  and  Herzegovina  is  between  an  early  stage  of  preparation  and  having  some  level  of 
preparation  in  the  area  of  environment  and  climate  change.  No  progress  was  made  in  this  area 
during the reporting period. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  ensure  coordinated 

the  countrywide  environmental 
approximation  strategy,  and  formalise  a  procedure  for  the  merit-based  and  transparent 
appointment of a focal point for Bosnia and Herzegovina in environmental conventions; 

implementation  and  monitoring  of 

→  adopt a State-level climate law and countrywide environmental protection and climate strategies 
and action plans in line with the EU acquis; submit a new nationally determined contribution to 
the  UNFCCC;  and  urgently  align  with the  EU  acquis  on  monitoring,  reporting,  verification  and 
accreditation (MRVA). 

15 

 
 
→  adopt the required legislation at all levels of governance and action plans to introduce the single 

European emergency number 112 across the country. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

Chapter 11: Agriculture and rural development 

Bosnia and Herzegovina is at an early stage of preparation on agriculture and rural development and 
made no progress in this area. The implementation of the ‘Strategic plan for rural development 2023-
2027 – framework document’, adopted in October 2024, has not advanced.  

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  adopt  a  multiannual,  countrywide  strategy for  agriculture  and rural  development,  and  harmonise 

support measures across the country in line with the EU acquis; 

→  adopt  a  State-level  law  on  organic  production,  a  State-level  law  on  quality  policy,  and 

implementing legislation on wine, in line with the EU acquis; 

→  set up the administrative structures required for the common agricultural policy. 

Chapter 12: Food safety, veterinary and phytosanitary policy 

Bosnia and Herzegovina has some level of preparation in this area. No progress was made over the 
reporting period. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  introduce an inter-laboratory comparative test system as regular practice, particularly for notifiable 
diseases; increase the administrative capacity of official controls authorities and laboratories; and 
increase the number of official controls; 

→  speed up preparation for national reference laboratories in hygiene, veterinary and phytosanitary 

inspections, and in food/foodstuff analysis, in line with the EU acquis; 

→  adopt legislation on food, on animal health, on animal welfare and on plant health, in line with the 
EU  acquis;  adopt  the  OECD  seed  schemes,  particularly  for  agricultural  seeds  and  forestry;  and 
prepare a plan to upgrade establishments producing food, feed and animal by-products to meet EU 
structural standards. 

Chapter 13: Fisheries and aquaculture 

Bosnia and Herzegovina is at an early stage of preparation in this area, and no progress was made 
during the reporting period.  

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  prepare and adopt a countrywide strategy on fisheries and aquaculture to align its legislation with 

the EU acquis; 

→  harmonise the methodology for data collection for fish and fishery/aquaculture products across the 

country and set up the relevant statistics system. 

Chapter 22: Regional policy and coordination of structural instruments 

Bosnia  and  Herzegovina  remains  at  an  early  stage  of  preparation  in  regional  policy  and  the 
coordination of structural instruments. No progress was made during the reporting period.  

16 

 
 
 
The  Commission’s  recommendations  from  last  year  were  not  implemented,  and  therefore  remain 
valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  develop and adopt a countrywide strategy guiding preparations for structural and cohesion funds 

and regional development; 

→  urgently appoint a national IPA coordinator (NIPAC) for the Instrument for Pre-Accession (IPA) 

III, and strengthen institutional and administrative capacity to manage EU funds; 

→  improve  public  investment  management  and  adopt  an  updated  single-country  project  pipeline 

covering priority sectors, based on a sound, transparent and inclusive methodology. 

Chapter 33: Financial and budgetary provisions 

Bosnia and Herzegovina is at an  early stage of preparation on financial and budgetary provisions. 
Limited  progress  was  made  in  this  area,  mainly  in  improving  the  capacity  of  the  Indirect  Tax 
Authority (ITA) and in implementing an accounting system for customs duties. 

The  Commission’s  recommendations  from  last  year  in  this  area  were  partially  implemented  and 
remain broadly valid. In the coming year, Bosnia and Herzegovina should in particular: 

→  strengthen capacity and inter-agency cooperation to combat tax and customs fraud; 

→  further improve the capacity of the Indirect Tax Authority to implement effectively the customs 

legislation; 

→  adopt a master plan for the production of national accounts for Bosnia and Herzegovina. 

CLUSTER 6: EXTERNAL RELATIONS 

Chapter 30: External relations 

Bosnia and Herzegovina has some level of preparation in external relations. No progress was made 
in this area during the reporting period. The capacity to tackle key challenges in trade policy has yet to 
be strengthened. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Bosnia and Herzegovina should in particular: 

→  finalise its accession to the World Trade Organization (WTO); 

→  fully implement the 2021-2024 Common Regional Market action plan (in particular by  urgently 
implementing  the  Central  European  Free  Trade  Agreement  (CEFTA)  additional  protocol  5  on 
trade  facilitation  and  the  additional  protocol  6  on  trade  in  services);  take  the  necessary  steps  to 
implement  additional  protocol  7  on  dispute  settlement;  and  implement  actions  under  the  new 
action plan for 2025-2028; 

→  start the process of establishing a development and humanitarian aid policy. 

Chapter 31: Foreign, security and defence policy 

Bosnia and Herzegovina has some level of preparation in the area of common foreign, security and 
defence  policy.  There  was  some  progress  in  this  area  during  the  reporting  period  as  Bosnia  and 
Herzegovina  maintained  full  alignment  with  the  EU’s  common  foreign  and  security  policy,  in 
particular  on  statements  and  restrictive  measures  following  Russia’s  war  of  aggression  against 
Ukraine.  Bosnia  and  Herzegovina  also  appointed  a  political  director  and  a  European  correspondent. 
However,  the  implementation  of  restrictive  measures  still  faces  significant  hindrances  by  those 
ministries  and  bodies  controlled  by  the  SNSD  party,  which  are  also  stepping  up  cooperation  with 
Russian counterparts. The Republika Srpska entity authorities continue to maintain frequent contacts 
with Russia at the highest levels.  

17 

 
 
 
The recommendations from last year were not implemented and therefore remain largely valid. In the 
coming year, Bosnia and Herzegovina should in particular: 

→  ensure  thorough  implementation  of  EU  restrictive  measures  the  country  has  aligned  with,  and 
make efforts to close the space for foreign information manipulation and interference (FIMI); 

→  align legislation and procedures with EU standards on the marking and deactivation of small arms 

and light weapons, including for seized and confiscated weapons;  

→  adopt a new foreign policy strategy. 

1.3  ASSESSMENT  OF  THE  IMPLEMENTATION  OF  THE  STEPS  SPECIFIED  IN  THE  COMMISSION’S 
RECOMMENDATION FOR CANDIDATE STATUS 

Step  1:  ensure  a track record  in  the functioning  at  all levels  of  the  coordination  mechanism  on  EU 
matters,  including  by  developing  and  adopting  a  national  programme  for  the  adoption  of  the  EU 
acquis. 

The Directorate for European Integration finalised the programme for EU integration, and submitted it 
to the European Commission in March 2024. This programme for EU integration is a key step towards 
putting  in  place  the  national  programme  for  the  adoption  of  the  EU  acquis  (NPAA);  it  should  be 
revised in line with the Commission comments provided in May 2024, in view of agreement with the 
Commission  on  the  NPAA.  The  Council  of  Ministers  should  urgently  appoint  the  national  IPA 
coordinator (NIPAC) for IPA III. 

Step 2: adopt, as a matter of priority, integrity amendments in the existing Law on the High Judicial 
and Prosecutorial Council. 

The  Parliament  adopted  the  integrity  amendments  to  the  HJPC  Law  in  September  2023,  further 
corrected in January 2024. The new department of the HJPC in charge of verifying asset declarations 
of judicial office holders and HJPC members started operations in June 2025 with the aim to establish 
a robust system of integrity checks with close external monitoring. Almost all asset declarations have 
been received and are being processed.  

Step  3:  adopt  a  new  law  on  the  High Judicial  and  Prosecutorial  Council  and  adopt  the  law  on the 
Courts of Bosnia and Herzegovina 

The two draft laws were not supported in Parliament in March 2025. New drafts are being prepared. 
Before  parliamentary  adoption,  both  laws  should  be  brought  fully  in  line  with  European  standards, 
notably with the March 2025 follow-up opinion of the Venice Commission as regards the law on the 
HJPC.  The  draft  law  on  the  Courts  of  Bosnia  and  Herzegovina  should  be  submitted  to  the  Venice 
Commission for a follow-up opinion, prior to its parliamentary adoption. 

Step 4: adopt the law on prevention of conflict of interest.  

The law on the prevention of conflict of interest was adopted by Parliament in March 2024. The law 
aims to improve compliance at State level, although it is not yet fully in line with European standards. 
The State-level commission it established in October 2024 is yet to pronounce any sanction.  

Step  5:  take  decisive  steps  to  strengthen  the  prevention  and  fight  against  corruption  and  organised 
crime. 

A  law  on  anti-money  laundering  and  countering  terrorism  financing  (AML/CFT)  was  adopted  in 
February  2024;  bylaws  remain  to  be  adopted.  In  July  2025,  the  Council  of  Ministers  established  a 
permanent coordination body on AML/CFT.  

In January 2025 Bosnia and Herzegovina adopted a law on personal data protection, based on which 
the  Eurojust  cooperation  agreement  was  signed  and  ratified.  A  strategy  and  action  plan  on  public 
procurement 2024-2028 has been adopted by the Council of Ministers in March 2024. 

18 

 
 
 
Bosnia and Herzegovina should strengthen cooperation among law enforcement agencies, and adopt a 
strategic approach towards fighting serious and organised crime.  

Progress in tackling high-level corruption still needs to be seriously stepped up in order to establish a 
credible track record. Indictments were confirmed against some senior officials, and investigations are 
ongoing. No new final conviction was recorded. 

Step 6: decisively advance work to ensure effective coordination, at all levels, of border management 
and migration management capacity, as well as ensuring the functioning of the asylum system. 

Migration  management  continues  to  improve,  although  it  still  requires  substantial  improvements. 
Reception capacities are sufficient. Readmission agreements and implementing protocols continue to 
be  implemented.  Bosnia  and  Herzegovina  needs  to  assign  an  appropriate  budget  for  migration 
management, continue efforts for the return of irregular migrants to their countries of origin and take 
further steps to ensure a functioning asylum system. Obstacles persist to ensuring quality and effective 
access  to  asylum  procedures.  Authorities  should  establish  concrete  plans  to  take  responsability  over 
migration management and reduce dependence on international organisations and donors.  

In January 2025 Bosnia and Herzegovina adopted a law on border control aimed at aligning with the 
EU  acquis,  and  in  June  2025  it  signed  the  Frontex  status  agreement  with  the  EU.  In  July  2025  the 
Council of Ministers adopted a strategy and action plan 2024-2029 on integrated border management. 
Bosnia and Herzegovina did not further align with the EU visa policy.  

Step 7: ensure prohibition of torture, notably by establishing a national preventive mechanism against 
torture and ill-treatment. 

In October 2019 the Constitutional Court repealed the reference to death penalty in the Constitution of 
the  Republika  Srpska  entity.  In  August  2023  the  Parliament  amended  the  Law  on  the  human  rights 
Ombudsman  to  designate  it  as  national  preventive  mechanism  against  torture  and  ill-treatment  –  an 
international obligation of the country.  

Step 8: guarantee freedom of expression and of the media and the protection of journalists, notably by 
ensuring  the  appropriate  judicial  follow-up  to  cases  of  threats  and  violence  against  journalists  and 
media workers. 

A countrywide network of contact points in prosecutors’ offices and law enforcement agencies was set 
up across the country to monitor cases of threats and violence against journalists and media workers. 
The authorities need to ensure its sustainability and demonstrate a track record in institutional follow-
up.  Political  influence  over  public  broadcasters  persists,  and  their  financial  sustainability  is  to  be 
urgently ensured, pending the adoption of a new law on the public broadcasting system.  

* * * 

2. 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS  

2.1. 

FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM 

2.1.1.   Democracy  

The functioning of democratic institutions in Bosnia and Herzegovina is challenged by the persistent 
discriminatory  elements  in  the  constitutional  structure,  by  the  constant  misuse  of  entity  vetoes  for 
political purposes (leading to inaction and delays in the work of the executive and Parliament), as well 
as  by  the  increasing  intensity  of  systematic  attacks  on  the  legal  and  constitutional  order  by  the 
Republika Srpska entity. 

In January 2025, the ‘trojka’ alliance (comprising the Social Democratic Party, People and Justice, and 
Our  Party)  put  an  end  to  the  ruling  coalition  with  Milorad  Dodik’s  Alliance  of  Independent  Social 
Democrats (SNSD). Lengthy negotiations amongst all coalition partners, including HDZ BiH, did not 
lead to a new coalition. The absence of a stable majority hindered the functioning of government and 
Parliament. The Republika Srpska entity continued not to recognise the rulings of the Constitutional 

19 

 
 
Court of Bosnia and Herzegovina.  

Bosnia and Herzegovina needs to bring its constitutional framework in line with European standards 
and  ensure  the  functionality  of  its  institutions  to  be  able  to  take  on  EU  obligations.  While  a 
decentralised State structure is compatible with EU membership, Bosnia and Herzegovina will need to 
reform  its  institutions  to  be  able  to  effectively  participate  in  EU  decision-making  and  to  fully 
implement and enforce the acquis. 

Elections  

The country needs to urgently adopt constitutional and electoral reforms to ensure that all citizens are 
able to effectively exercise their political rights, notably bring the country’s Constitution into line with 
the Sejdić-Finci case law of the European Court of Human Rights (Opinion key priority 4.f). 

Following the local elections of October 2024, which the Organization for Security and Cooperation in 
Europe  (OSCE)  /  Office  for  Democratic  Institutions  and  Human  Rights  (ODIHR)  assessed  as 
competitive and efficiently managed, the Parliamentary Assembly of Bosnia and Herzegovina took no 
action  to  improve  the  integrity  of  the  electoral  process.  Although  no  systematic  disinformation 
campaign  was  observed,  limited  and  biased  campaign  coverage  eroded  public  trust  in  the  electoral 
process.  

Bosnia and Herzegovina needs to address previous and new recommendations of the OSCE/ODIHR, 
the  Council  of  Europe’s  Group  of  States  against  Corruption  (GRECO)  and  the  Venice  Commission 
(Opinion key priority 1). These recommendations include improving: (i) the transparency of financing 
of parties and electoral campaigns; (ii) the transparency and targeting of political advertising; and (iii) 
the registration of political parties.  

In September 2024 and March 2025, the Constitutional Court repealed the separate election law and 
part  of  the  law  on  referenda  and  civic  initiatives,  which  had  been  adopted  by  the  Republika  Srpska 
entity in April 2024. These laws aimed to usurp State competences, bypassing the CEC and drawing 
up a separate voters’ registry. The Republika Srpska entity needs to respect these Constitutional Court 
rulings and not attempt to enact such unconstitutional laws. 

After the High Representative blocked public funds for the SNSD and United Srpska parties, in May 
2025  the  Republika  Srpska  entity  abolished  public  financing  for  all  political  parties.  This  risks 
disadvantaging opposition parties that have no access to administrative resources. Given the continued 
absence of a State budget, in July 2025 the High Representative took measures to ensure funds for the 
timely procurement of equipment with a view to improve the integrity of the upcoming October 2026 
elections. Following criminal conviction, Dodik was banned and removed from office; early elections 
for entity president are scheduled for late November. 

Reports of fraud in the 2024 local elections led to prosecution in only a limited number of cases. The 
CEC  needs  to  strengthen  its  audit  capacity  to  monitor  compliance  on  political  party  financing. 
Although they are required to do so by law, political parties do not return excess funds to the public 
budget after elections. Following CEC sanctions, several parties have reduced transparency about the 
financial  donations  they  receive.  Political  parties  should  respect  the  independence  of  the  CEC  and 
refrain from threatening to dismiss its members.  

20 

 
 
Political  parties  lack  democratic  internal  policies  and  structures,  including  policies  to  promote 
women’s  representation.  There  are  no  women  among  the  leaders  of  parliamentary  parties  in  Bosnia 
and Herzegovina, and few in other leadership positions. Legislation across the country, including the 
election law, should be aligned with the State-level gender equality law to increase women’s public 
and  political  participation.  Women’s  representation  saw  a  modest  increase  in  local  government 
following the 2024 local elections – rising from 19.6% to 22.7% in municipal councils and from 3.6% 
to 5.6% among mayors.  

Parliament  

The Parliamentary Assembly of Bosnia and Herzegovina adopted only eight laws in 2024 (of which 
seven were adopted under urgent procedure), and four in the first four months of 2025 (of which two 
in urgent procedure), including laws on border control and on data protection adopted in January 2025 
with the support of opposition parties from  Republika Srpska entity. This compares with 14 laws in 
2023. Entity assemblies made considerable use of urgent legislative procedures in the reporting period. 
A State budget for 2025 remains to be adopted.  

The Republika Srpska entity assembly adopted several laws in breach of the legal and constitutional 
order,  which  were  later  repealed  by  the  Constitutional  Court  of  Bosnia  and  Herzegovina.  These 
unconstitutional laws include the entity law on immunity, which curtailed the criminal accountability 
of members of government and legislators. The Republika Srpska entity assembly should comply with 
its  long-overdue  constitutional  obligation  and  immediately  appoint  judges  to  vacant  positions  at  the 
Constitutional Court of Bosnia and Herzegovina.  

The  Federation  entity  assembly  appointed  a  State-level  constitutional  judge  and  two  entity-level 
constitutional judges in April 2025. It also appointed members of the independent police board and the 
board of governors of the entity’s public broadcaster FBiH RTV, after 12 years of delay. 

The  oversight  of  the  executive  remains  weak,  including  in  entities  and  cantons.  Assemblies  do  not 
monitor the executives’ compliance with recommendations of independent institutions.  

Governance 

The  members  of  the  Presidency  continued  to  present  diverging  stances  during  the  reporting  period. 
This led to delays in Presidency decisions, including on the signature of the Frontex status agreement 
and  the  IPA  2024  financing  agreement,  which  were  only  adopted  in  May  2025.  Over  summer,  the 
Presidency adopted the IPA 2024 and the Eurojust cooperation agreements. 

The functioning of the Council of Ministers of Bosnia and Herzegovina deteriorated with the end of 
in 
the  ruling  coalition 
January 
The 
Minister  of  Security  was 
arrested 
in  December 
2024  and  a  new  minister 
has  not  been  appointed 
yet.  In  September  2025 
the  Council  of  Ministers 
adopted 
Reform 
a 
Agenda,  which  was 
the 
submitted 
European  Commission 
for agreement. 

2025. 

to 

following the 2024 October municipal elections.  

EU integration  

21 

institutions 
Independent 
remain  weak.  All  local 
authorities  are  in  place 

 
 
The policy dialogue with the EU continued  within the eighth cycle of sectoral subcommittees under 
the  SAA.  The  Stabilisation  and  Association  (SA)  Parliamentary  Committee  took  place  regularly 
(Opinion key priority 3), and the SA Committee was held in September 2025.  

Nevertheless, the Council of Ministers has taken no action to facilitate policy dialogue within the SAA 
bodies,  in  line  with  the  recommendations  received  from  the  Commission  in  May  2022  and  in  May 
2025. The Council of Ministers should urgently: (i) simplify procedures; (ii) empower its Directorate 
for European Integration (DEI) to submit preparatory documents to the European Commission without 
unnecessary  and  lengthy  political  adoption;  and  (iii)  appoint  permanent  delegates  to  sectoral 
subcommittees.  

Coordination on EU matters needs to be significantly improved to focus on countrywide harmonised 
alignment  with  the  EU  acquis  and  its  effective  enforcement.  The  DEI  should  step  up  its  role  in 
assessing  countrywide  alignment  with  the  EU  acquis.  As  an  outstanding  obligation  under  the  SAA, 
Bosnia  and  Herzegovina  needs  to  develop  and  agree  with  the  Commission  a  national  plan  for  the 
adoption  of  the  acquis  (NPAA,  Opinion  key  priority  2)  that  reflects  the  role  that  all  levels  of 
government  play  in  aligning  with  and  enforcing  the  EU  acquis.  The  DEI  should  submit  to  the 
Commission  for  agreement  its  ‘programme  for  EU  integration’,  revised  in  line  with  the  May  2024 
comments  by  the  Commission.  These  actions  are  particularly  needed  with  a  view  to  opening  EU 
accession negotiations once the necessary conditions have been met.  

The Council of Ministers should urgently appoint a national IPA coordinator (NIPAC) for IPA III. The 
Commission  would  welcome  the  appointment  of  the  DEI  Director  to  perform  this  function  as  in 
previous financial periods. Bosnia and Herzegovina should also urgently appoint a chief negotiator for 
EU accession negotiations. This is important with a view to the start of the explanatory meetings with 
the Commission on the EU acquis (part of the screening), based on the materials already received by 
Bosnia and Herzegovina in 2024.  

Civil society  

The space for civil society further shrank during the reporting period, due to donor cuts (USAID) and 
the  restrictive  legislation  adopted  in  the  Republika  Srpska  entity,  in  particular:  (i)  the  law  targeting 
civil  society  groups  as  ‘foreign  agents’  (declared  unconstitutional  in  May);  and  (ii)  the  criminal 
penalties  for  defamation,  which  continue  to  have  a  chilling  effect.  CSOs  in  the  entity  were  also 
targeted by disproportionate tax inspections.  

No  action  was  taken  to  align  legislation  on  public  consultations  across  the  country  and  ensure 
meaningful  and  systematic  consultations  with  civil  society.  The  e-consultation  web  platform  is 
underutilised, and is not in use at entity or cantonal level where most legislation of public interest is 
adopted.  On  the  basis  of  the  2017  Charter  on  cooperation  with  CSOs,  in  July  2025  the  Council  of 
Ministers adopted a strategy to create a conducive environment for the development of civil society 
2025-2029, and a related action plan for 2025-2026.  

Grassroots  CSOs  advocate  proactively  for  policy  changes.  Women’s  associations  play  a  key  role  in 
reaching  out  to  the  most  vulnerable,  including  victims  and  survivors  of  domestic  and  gender-based 
violence. Human rights defenders and activists dealing with sensitive issues (such as anti-corruption; 
women’s  rights;  the  rights  of  lesbian,  gay,  bisexual,  transgender,  intersex  and  queer  (LGBTIQ) 
persons;  migrants;  and  environmental  protection)  continued  to  be  targeted  and  subject  to  threats, 
harassment,  verbal  abuse  and  even  physical  attacks,  as  well  as  to  strategic  lawsuits  against  public 
participation (SLAPPs). Women activists are particularly targeted.  The authorities continue to fail to 
condemn and properly investigate such attacks.  

There is  no  countrywide  framework  for the transparent  and  impartial  distribution  of  public  funds to 
associations. CSOs that provide services to disadvantaged groups in place of public authorities should 
receive appropriate public funding. The withdrawal of donor funding, notably from the United States, 
severely impacted the functioning of independent media outlets and CSOs during the reporting period, 
limiting  their  work  on  human  rights,  anti-corruption,  environmental  protection,  and  support  for 
vulnerable groups. There is no State-level legal framework on volunteering, which is regulated by the 

22 

 
 
entities and the Brčko District. 

2.1.2. Public administration reform  

Strategic framework for public administration reform 

Implementation  of  the  strategic  framework  2018-2027  has  significantly  lagged  behind.  The 
coordination arrangement –also called the Common Platform – facilitated the finalisation, in October 
2025, of a new action plan for public administration reform for 2023-2027. The action plan includes a 
credible  costing  of  reforms  but  lacks  funding  from  own  budgets  relying  mostly  on  external  donor 
funding. This new action plan remains to be adopted by the Council of Ministers and in the Republika 
Srpska entity. Due to these delays, and a general lack of political support, the rate of implementation 
of reforms in the public administration has stagnated. The weak capacities of entity-level coordinators 
continue  to  hinder  reforms.  As  an  illustration,  the  political  coordination  body  –  operating  at  prime 
ministers’ level (State and entities) to provide high-level oversight – has not reconvened since its first 
meeting in February 2024. Reforms continue to depend on donors. To ensure financial sustainability, 
the authorities need to increase budgetary contributions.  

Policy development and coordination 

The legal frameworks and institutional arrangements for policy development and coordination remain 
fragmented.  State-level  institutions  need  to  be  strengthened  in  steering  countrywide  policies.  The 
legislation at State level on countrywide sectoral strategic planning is pending adoption. Although 
there  are  procedures  in  place  for  medium-term  planning,  monitoring  and  reporting  in  State-level 
institutions,  there  is  still  no  coordinated  whole-of-government  approach to medium-term  and  annual 
priority setting. The institutional framework remains fragmented with insufficiently delineated quality-
oversight functions, and various centres of government remain poorly coordinated with one another. A 
single State-level institution remains to be designated as being in charge of annual and medium-term 
policy  planning.  The  country  still  lacks  a methodology  that  has  both  strong  quality  assurance  and a 
conflict-resolution  mechanism  for  harmonised  and  coordinated  legislative  alignment  with  the  EU 
acquis. The country still needs to ensure both: (i) effective monitoring and alignment of policies with 
annual budgets and government working plans at each level of government; and (ii) credible costing 
on sectoral policies.  

Implementation of the legal framework for inclusive and evidence-based policy development across 
different levels of government remains weak. The State-level e-consultation system was improved by 
introducing  an  obligation  for  institutions  to  publish  reports.  The  administrative  capacity  to  use  e-
consultation  platforms  should  be  improved  at  all  levels  of  government.  The  lack  of  progress  in 
developing common standards for monitoring and reporting hampers public and government scrutiny 
of sectoral policy implementation. 

Public financial management 

All levels of government made progress in implementing the comprehensive existing strategy for the 
reform  of  public  financial  management,  although  monitoring  reports  were  not  prepared  regularly 
during  the  reporting  period.  Bosnia  and  Herzegovina  should  apply  a  countrywide  approach  to  the 
monitoring  of  public  financial  management,  with  additional  horizontal  activities  coordinated  among 
all  levels  of  government  (today  only  7%  of  all  activities).  Delays  in  approving  budget  planning 
documents  undermine  fiscal  discipline  and  parliamentary  scrutiny.  Fiscal-risk  monitoring  remains 
underdeveloped,  particularly  for  public  enterprises  and  municipalities,  while  a  fiscal  council  still 
remains to be set up both at State level and in the Federation entity. Despite progress, basic elements 
of the public financial management system still need to be put in place, including: (i) regular adoption 
of a State budget; (ii) credible costing of sectoral policies – both annually and in the medium term; and 
(iii) budget transparency. Revenue administration reforms have improved tax collection, but the level 
of  digitalisation  remains  low.  Reforms  are  needed  to  address  informality  in  the  economy  and  better 
integrate businesses into the formal economy. Necessary reforms that still need to be completed in this 
area include: (i) better linking the annual strategic planning and budgeting processes in the annual and 
medium  term;  (ii)  strengthening  capacities  in  the  area  of  public  investment  management;  and  (iii) 

23 

 
 
continuing  to  implement  the  laws  on  programme  budgeting,  and  adopting  similar  legislation  in  the 
Republika Srpska entity. Public investment management lacks coordination, with no unified pipeline 
for key projects or effective funding mechanisms.  

Public service and human resources management 

Civil service laws are still not harmonised with one another, and merit principles are not enshrined in 
the recruitment, promotion and dismissal of civil servants. 

There was no progress made during the reporting period on ensuring a depoliticised and professional 
civil  service.  The  legal  criteria  for  dismissals,  disciplinary  procedures  and  appeals  continue  to  be 
insufficiently applied. The digitalisation of State-level recruitment is ongoing. Entity-level laws do not 
require the best candidate to be appointed, allowing for political influence in recruitment, particularly 
for senior positions. At cantonal level, selection continued to depend on ethnic background rather than 
merit.  The excessive  use  of  acting  positions  continued  during the reporting  period,  especially in  the 
Republika Srpska entity. Constitutional rules on the general representation of the population in public 
administration should not be interpreted as requiring strict ethnic proportionality in the civil service, 
and  the  legislation  should  ensure  that  ethnic  criteria  do  not  prevail  over  professional  criteria  in 
recruitment.  Gender  balance  in  top  management  positions  in  the  Federation  entity  (where  42%  of 
those positions are occupied by women) is slightly better than the average in OECD-EU countries, but 
the  low  share  of  women  in  top  management  positions  in  the  State  institutions  (27%)  and  in  the 
Republika Srpska entity (33%) is a concern.  

The  quality  and  capacity  of  human  resources  management  (HRM)  remain  weak  and  highly 
fragmented. The Federation entity and its cantons continued to implement the 2022-2027 strategy for 
the development of HRM. The State-level institutions and the Republika Srpska entity still need to do 
the same. There is still a need to strengthen transparent monitoring and planning of HRM performance 
and related capacity and data on HRM. Some progress in this area is visible in the Federation entity, 
which is  developing  the first  HRM monitoring report  based  on the  upgraded  HRM methodology  on 
data collection. 

Civil servants’ remuneration remained inconsistent across the country due to: (i) differences in salary 
legislation, job classification and pay grades; and (ii) the lack of job evaluations. These factors all act 
to  hinder  fairness  in  remuneration.  Criteria  for  awarding  salary  supplements  are  unclear,  and  no 
information is published on average salary levels by job category. A broad salary reform is required 
across all levels of government, as is the harmonisation of job descriptions. 

Civil service agencies need more resources for training and professional development. Overall, in the 
reporting  period,  there  has  been  no  progress  in making  performance  appraisal  a  more  useful tool to 
justify promotions or to distinguish good performance from bad. 

There  continues  to  be  no  system  for  gathering  and  consolidating  data  on  the  integrity  of  civil 
servants. In the reporting period, there has been no legislative development in the Federation entity on 
whistle-blower protection, or on declaration of assets in the Republika Srpska entity. 

Accountability of administration 

During  the  reporting  period,  the  coordinators  for  public  administation  reform  at  all  levels  of 
government  conducted  a  comprehensive  analysis  of  public  administration,  identifying  structural 
inefficiencies  and  gaps  in  accountability,  transparency,  and  service  delivery.  However,  no  progress 
was made in improving accountability lines between ministries and subordinate bodies. The delegation 
of  tasks  and  responsibilities  from  top  to  middle  managers  remains  weak,  impairing  operational 
efficiency. 

The State-level Law on freedom of access to information still needs to be brought fully in line with 
international  standards  on  the  independence  of  the  appeal  process.  The  same  applies  to  the  laws 
adopted  in  the  Brčko  District  in  October  2025  .  The  Council  of  Ministers  adopted  in  April  2024  a 
guide  for  access  to  information,  while  in  May  2024  the  Ministry  of  Justice  introduced  a  register  of 
requests. Rules on data protection and access to information are still interpreted in a way that protects 

24 

 
 
private rather than public interests. Ombudsman recommendations remain mostly focused on ensuring 
access  to  information,  although  with  a  slight  decrease  in  the  overall  number  of  related 
recommendations. 

Service delivery to the public and businesses 

No action was taken to improve service delivery during the reporting period. There are no effective 
frameworks  or  mechanisms  for  user-oriented  administration  across  the  country.  There  is  no 
comprehensive countrywide policy on service delivery and clear institutional functions at any level of 
government,  nor  is  there  a  clear  catalogue  on  the  online  delivery  of  user  services.  The  absence  of 
infrastructure to enable electronic signatures for the public continued to impede further digitalisation 
during the reporting period.   

2.2.   RULE OF LAW AND FUNDAMENTAL RIGHTS  

2.2.1.  Chapter 23: Judiciary and fundamental rights 

The  EU’s  founding  values  include  the  rule  of  law  and  respect  for  human  rights.  An  effective 
(independent, high-quality and efficient) judicial system and an effective fight against corruption are 
of paramount importance, as is respect for fundamental rights in law and in practice.  

Functioning of the judiciary 

Strategic documents 

Bosnia and Herzegovina has yet to adopt a new strategy and related action plan for the reform of its 
justice  sector.  In  December  2024,  the  HJPC  adopted  an  action  plan  for  its  2024-2026  reform 
programme in  line  with  EU  priorities  and  an  appropriate  budget.  The  HJPC  needs  to  put  in  place  a 
monitoring  system  to  assess  the  implementation  of  this  action  plan.  In  April  2025,  the  Council  of 
Ministers  adopted  a  strategy  and  action  plan  to  ensure  the  security  of  judicial  office  holders  and 
protected witnesses.  

Management body 

The  HJPC  functions  adequately  as  the  judiciary’s  single  self-governance  body.  In  March  2025,  the 
Republika Srpska entity adopted a law to set up a separate judiciary council, banning the HJPC from 
operating  in  the  entity,  and  called  on  HJPC  members  from  the  entity  to  resign.  The  Constitutional 
Court  suspended  and  later  repealed  this  law  and  related  acts,  and  prohibited  all  authorities  from 
enacting  them.  Upholding  the  Constitutional  Court’s  decision  is  essential  to  protect  judicial 
independence and the rule of law.  

The  HJPC still needs to ensure  independence and integrity  in  appointing its members by reinstating 
randomisation for ethnicity and gender. It also needs to finalise the recruitment of a chief disciplinary 
counsel. The budget of the HJPC needs to be increased to both: (i) complete the recruitment of staff of 
the asset declarations department; and (ii) ensure that the State budget takes over funding all the HJPC 
staff  by  2027.  The  country  should  secure  funding  for  the  smooth  transition  of  staff  and  timely 
implementation of the new HJPC law in line with the accompanying financial impact assessment. 

During the reporting period, the HJPC continued to monitor the judicial response to cases of domestic 
violence,  attacks  on  returnees,  the  protection  of  journalists  and  activists,  and  the  fight  against 
organised crime and corruption. It still needs to improve the enforcement of its measures by both: (i) 
collaborating more  closely  with  court  presidents  and chief  prosecutors;  and  (ii)  using  accountability 
mechanisms already at its disposal.  

Independence and impartiality  

25 

 
 
 
The independence and impartiality of the judiciary needs to be improved. Integrity plans are in place 
in  almost  all  courts  and  prosecutors’  offices  in  Bosnia  and  Herzegovina,  albeit  with  limited  results. 
Ethics  codes  are  in  place  and  included  in  initial  training.  A  violation  of  the  ethics  codes  causing 
damage to the reputation and integrity of the judiciary is deemed a disciplinary violation, but no such 
case has yet been decided by the HJPC.   

Undue internal and external pressure on the judiciary continued. The threat-reporting mechanism and 
subsequent  public  reactions  of  the  HJPC  still  need  to  be  reviewed  to  ensure  consistency.  The  new 
HJPC Law should improve the response framework for requests for protection from undue influence.  

Legal  safeguards  are  in  place  to 
ensure  the  independence  of  judicial 
Nevertheless, 
appointments. 
in  which 
appointments 
ethnic 
is  prioritised  over  merit 
balance 
continue, and the reasoning provided 
for  such  decisions  — 
including 
instances  where  the  ranking  is  not 
observed  —  is  often  inconsistent  or 
insufficient.  Judicial  appointments 
should be guided primarily by merit, 
with ethnic considerations only when 
candidates  are  equally  ranked.  The 
the 
HJPC 
reasoning in its appointment decisions. In 2024, the appointment of judges was significantly less based 
on  merit  than  on  factors  such  as  ethnicity  or  gender,  which  is  a  concern.  The  appointment  of 
prosecutors showed a modest improvement in the merit-based approach. The new HJPC Law should 
provide for: (i) annual entry appointments; (ii) career and promotion based on seniority and effective 
appraisal; and (iii) ethnicity not to prevail over merit in recruitment. 

strengthen 

should 

The HJPC’s case management system provides efficient randomised case allocation when used. While 
the overall number of manually reallocated cases remains high (in total 644 514 cases) and continues 
to  be  a  concern, each  reallocation  is  supported  by  a written  and  reasoned  decision.  Out of  that  total 
number, 11% of cases were reallocated without reasons given (74 867), which is significantly less than 
in the past reporting periods. 

Accountability 

to  be 

The  accountability  of  the  judiciary 
improved.  Corruption 
needs 
cases  involving  judicial  office  holders 
should  be  processed  efficiently  and 
effectively.  The  HJPC  has  prioritised 
these  cases  and  introduced  reporting 
every  six  months,  enabling  better 
oversight. More efficient investigations 
and  proper  trial  management  are  still 
needed  to  prevent  delays.  Without 
prejudice 
confidentiality, 
prosecutors'  offices  should  also  promptly  share  the  relevant  results  of  their  investigations  with  the 
Office of Disciplinary Counsel for disciplinary action. 

to 

26 

 
 
Under  the  agreement  between  the  European  Commission  and  the  HJPC,  EU  external  experts  began 
monitoring the functioning of the revised asset declaration system. Their first task was to monitor the 
recruitment  of  the  staff  for  the  newly  established  HJPC  asset  declarations  department  between 
September  2024  and  June  2025,  which  they  assessed  as  transparent  and  in  accordance  with  the 
applicable procedures.  

both 

prohibited 

In January 2025, the Data Protection 
Agency 
the 
collection  of  asset  declarations  until 
the  department  is  functional  and 
digital 
use 
restricted 
declarations 
the  absence  of 
electronic  signature.  A  challenge  to 
the  provisions  on  asset  declarations 
is  pending  before  the  Constitutional 
Court.  

the 
in 

of 

set 

first 

their 

In August 2025, the external monitor 
of 
issued 
recommendations.  These  were  only 
partially accepted by the department, 
diverging  notably  on  the  department’s  independence  and  on  the  scope  of  application  of  asset 
declarations  to  family  members,  both  of  which  have  been  intepretedly  narrowly.  The  HJPC  must 
ensure  that  experts  are  able  to  monitor  asset  declarations  effectively,  as  required  by  law,  while  the 
department should carefully and fully consider the experts’ recommendations. 

department 

The asset declarations department started operations in June 2025, starting with the collection of asset 
declarations and initial verifications. Funding has been secured for 8 of the 17 planned positions; full 
funding must be secured without delay to ensure the department can operate at full capacity. The asset 
declarations 
now 
needs to meaningfully perform its 
the 
function 
HJPC,  whose  members’  asset 
declarations  it  also  verifies.  By 
to  submit  asset 
the  deadline 
declarations,  98%  of  individuals 
obliged  to  submit  a  declaration 
complied  with  said  obligation. 
show 
The  HJPC  needs 
commitment  to  the  verification 
process 
the 
authority 
functional 
and 
independence  of  the  department, 
and by refraining from restrictive interpretations of the law and practices which threaten to undermine 
the effectiveness of the integrity measures.  

independently  of 

respecting 

by 

to 

All  relevant  stakeholders  are  expected  to  provide  all  requested  data  to  the  asset  declarations 
department.  The  new  Law  on  the  HJPC  should  grant  the  department  stronger  powers  to  request 
additional information from natural and legal persons, in line with best practices, ensuring that it has 
effective access to all data needed to carry out its mandate. 

Disciplinary procedures continue to have little dissuasive effect despite their relatively high number. 
No  action  was  taken  to  address  last  year’s  recommendations  to  remedy  serious  breaches  of  judicial 
integrity for HJPC disciplinary bodies, which is of concern.  

Quality of justice 

27 

 
 
The quality of justice needs to be improved. Performance appraisals lack nuance and therefore remain 
ineffective. The vast majority of judges and prosecutors, including in managerial roles, are assessed as 
having  exceptional  performance.  The  HJPC  adopted  new  appraisal  criteria  in  December  2024,  but 
qualitative criteria account for barely 10% of the overall evaluation. The guidelines for the review and 
control  of  prosecutorial  decisions  adopted  by  the  HJPC  in  November  2024  have  been  implemented 
across the country.  

The  HJPC  should  assume  a  stronger  coordination  role  over  the  training  for  judges  and  prosecutors, 
which  is  provided  by  entity-level 
training 
and 
devising 
assessing 
programmes  and  evaluating 
the 
impact  of  training  should  be  closely 
monitored  and 
improved  where 
needed.  The  total  2024  budget  for 
training 
to 
EUR 138 000. 

increased  by  6.2% 

centres.  Selecting 

trainers, 

of 

the 

have 

increased 

The  measures  introduced  by  the 
HJPC 
the 
transparency 
judiciary, 
including  in  the  publication  of  both 
decisions and hearing schedules. The 
court  decision  database,  the  case  law 
portal,  and  the  list  of  cases  of  public 
interest (including war crime and high-
level  corruption  cases)  continued  to 

grow.  

impact  of 

The  panels  for  the  harmonisation  of 
judicial  practice  adopted  5  positions  in 
2024  (2  in  2023).  The  HJPC  should 
closely  monitor 
the 
the 
panels’  work.  The  HJPC  database  of 
appellate  court  legal  positions  should 
further  serve  as  a  tool  for  ensuring 
uniform  judicial  practice  across  the 
country.  Ultimately,  the  country  needs 
to  put  in  place  a  judicial  body  capable 
of  ensuring  consistent  interpretation  of 
the  law  and  harmonisation  of  case  law 
across the country (Opinion key priority 
4.e).  

The Ministry of Justice still needs to follow-up with a view to the adoption by the Council of Ministers 
of the mediation strategy proposed by the HJPC in 2022 as part of the  alternative dispute resolution 
mechanisms.  

Efficiency 

The efficiency of justice needs to be improved. The length of court proceedings in first-instance cases 
(excluding utility cases) decreased further to 269 days in the first half of 2025. The Federation entity 
still  needs to  adopt  a  law  to  protect the  right  to trial within  a  reasonable  time;  the  enforcement  and 
impact of this law will need to be monitored.  

In 2024, the total budget for the judiciary, including the HJPC, was EUR 212.8 million, an increase 
compared  with  EUR 183.2  million  in  2023.  Although  this  spending  on  the  judiciary  is  at  the  same 

28 

 
 
level as the median value for the Western Balkans, funds remain insufficient for investments. Ensuring 
sufficient  financing  of  judicial  institutions  is  a  responsibility  of  the  executives  at  all  levels  of 
government.  This  leads  to  difficulties  in  budget  planning  and  negotiations  over  budget  inequalities, 
which have a negative effect on equal access to justice. The new HJPC Law should strengthen the role 
of the HJPC in budget planning and negotiations for judicial institutions.  

The backlog of pending court cases at first instance has decreased and stood at over 1.8 million cases 
at the  end  of  2024 (other  than  criminal cases, and  including  over  1.4 million  cases  of  unpaid  utility 
bills),  but  it  continues  to  hinder  the  efficiency  of  justice.  Non-utility  cases  were  processed  more 
efficiently, with the backlog decreasing by 9% compared with 2023. No steps were taken to urgently 
amend entity-level legislation to transfer the enforcement of small and uncontested claims from courts 
to  professional  bailiffs.  Entity  and  cantonal  governments  did  not  secure  sufficient  funds  for 
enforcement  departments  in  courts  or  for  access  to  information  on  debtors’  properties.  The  courts 
demonstrated  good  efficiency  in  handling  cases  at  first  instance  (other  than  criminal  cases),  with 
clearance rates overall above 100%. 

The  4%  increase  in  indictments  in  2024  did  not  result  in  better  prosecution  of  crimes.  There  was  a 
decrease in the number of verdicts (5%), convictions (4%), acquittals (14%) and dismissals (3%), and 
the  backlog  of  unresolved  criminal  cases  increased.  To  address  the  existing  systemic  backlogs,  the 
prosecution services need to process cases more efficiently.  

The  case  management  system  produces  reliable,  detailed  statistics  and  reports  on  case  flow,  human 
resources  and  length  of  judicial  proceedings,  contributing  to  timely  delivery  of  judicial  data  to  the 
CEPEJ. The HJPC needs to step up its oversight and management of the performance of the judicial 
system, including on case reallocations, on the basis of reliable statistical data. With this aim in mind, 
HJPC  members,  court  presidents  and  chief  prosecutors  should  receive  tailored  training  with  a 
component on data analysis.  

Domestic handling of war crime cases 

29 

 
 
to 

In  2024,  the  International  Residual  Mechanism  for  Criminal  Tribunals  (IRMCT)  received  178 
assistance  requests  from  Bosnia  and  Herzegovina  and  facilitated  the  transfer  to  Serbia  of  case  files 
involving  Serbian  nationals.  Based  on  the  memorandum  of  understanding  with  the  IRMCT,  one 
conviction from international tribunals was registered in the records kept at State level and 16 in the 
Federation  entity;  the  Republika  Srpska  entity  registered  none  of  the  34  convictions  that  had  been 
them. 
forwarded 
While 79% of war crime 
cases  identified  in  2013 
resolved, 
have 
persist, 
challenges 
unavailable 
including 
limited 
suspects, 
cooperation, 
regional 
legal 
and 
The 
inconsistencies. 
for 
deadline 
implementing 
the 
revised  national  war 
crimes  strategy  must  be 
extended  beyond  2025 
and  efforts  to  fulfil  its 
objectives need to intensify. The strategy’s supervisory body should continue to meet regularly as in 
2024, when it met five times.  

been 

(ii) 

Regional  judicial  cooperation  in  processing  war  crime  cases  improved  slightly  thanks  to  bilateral 
protocols.  Cooperation  with  Serbia  and  with  Montenegro  remains  effective  and  productive,  while 
impediments  persist  in  cooperation  with  Croatia,  notably  due  to:  (i)  differing  legal  qualification  of 
crimes  against  humanity  and 
the  notion  of  joint  criminal 
issues 
enterprise,  and 
related  to  dual  citizenship. 
Bosnia  and  Herzegovina  also 
signed 
agreements  with 
Montenegro  on  prosecutorial 
cooperation 
and  witness 
support in cross-border cases. 
Training is needed to improve 
to 
support 
the 
witnesses,  especially 
those 
testifying 
in  neighbouring 
countries.  Prosecutors  agreed 
to increase case transfers with 
Serbia  and  Croatia.  Yet  only 
6% of resolved court cases and 8% of cases at prosecution level from 2021–2024 were settled through 
regional cooperation.  

given 

By  the  first  half  of  2025,  118  individuals  evaded  judicial  proceedings  in  Bosnia  and  Herzegovina. 
Holding multiple citizenships, they often reside in neighbouring countries and escape justice by taking 
advantage of prohibitions against extradition of nationals for genocide, crimes against humanity and 
war  crimes.  They  also  benefit  from  neighbouring  jurisdictions’  lack  of  progress  in  addressing  the 
crimes  in  question.  Such  fugitives  include  Novak  Djukić,  Duško  Kornjača  and  Tomislav  Kovač  in 
Serbia, and Sakib Mahmuljin in Türkiye.  

Fight against corruption 

Track record 

30 

 
 
services 

Progress in tackling high-level corruption still needs to be seriously stepped up in order to establish a 
credible track record. Indictments were confirmed against some senior officials, including the former 
director  of  the  Intelligence  and  Security  Agency  (OSA)  and  the  former  President  of  the  Court  of 
Bosnia and Herzegovina. Investigations are ongoing against the former Minister of Security and the 
former  mayor  of  Sarajevo,  among  others.  Another  former  Minister  of  Security’s  conviction  was 
remains 
It 
upheld  on  appeal. 
that  prosecution  and 
essential 
ensure 
judicial 
and 
independent, 
to 
impartial 
these  cases,  which  are  of  great 
public resonance and raise concern 
about  systemic  corruption  and 
equally 
State 
imperative  for  law  enforcement 
agencies and the judiciary to take a 
more 
in 
combating  organised  crime  and 
from  outside 
corruption, 
interference.  The 
prosecutor’s 
offices  in  East  Sarajevo,  Prijedor, 
Posavina  and  Trebinje  did  not 
prosecute  a  single  corruption  case 
in 2024. As a positive example, in February 2025 the Sarajevo Canton’s prosecution, police and anti-
corruption  office  signed  a  memorandum  of  cooperation  which  swiftly  led  to  investigations  against 
senior officials. 

follow-up 

proactive 

effective 

capture. 

judicial 

stance 

free 

is 

It 

The  State-level  Law  on  the  prevention  of  conflict  of  interest,  adopted  in  March  2024,  remains 
effectively unimplemented. The commission it established has failed to pronounce any sanction or to 
submit the required bylaws to the Council of Ministers for adoption. Considerably fewer State-level 
officials  complied  with  their  obligation  to  submit  financial  reports  for  the  verification  of  asset 
declarations in 2024 (285 out of 600, some 23% less than in 2023). Those who submitted no, partial or 
incorrect  declarations  faced  no  proceedings,  reports  nor  sanctions.  There  are  marked  differences  in 
compliance with the law across the country. 
In the Republika Srpska entity, the law lays 
down no sanctions. In the Federation entity, 
breaches  of  conflict  of  interest  remain 
unsanctioned  despite  extensive  media 
coverage  and  public 
interest.  Tangible 
in  verifying  asset  declarations 
results 
continued 
the  Sarajevo  and  Tuzla 
cantons and in the Brčko District. Targeted 
risk  assessments  and  dedicated  measures 
are  needed  to  address  corruption  in  the 
most vulnerable sectors. 

in 

Legal framework 

The  legal  framework  on  the  fight  against 
corruption  is  not  fully  in  place,  and  needs 
to  be  improved  in  the  areas  of  both 
preventive  measures  and  law  enforcement.  The  lack  of  harmonised  legislation  across  the  country 
continued  to  hamper  the  fight  against  corruption.  The  Law  on  the  prevention  of  conflict  of  interest 
remains to be fully aligned with European standards, particularly on incompatibilities, sanctions, and 
the election and composition of the Commission on conflict of interest. All levels of government need 
to fully align their legislation on conflict of interest with European standards and to implement the law 
31 

 
 
in good faith. 

The legislative framework on the protection of whistle-blowers is still incomplete and not fully in line 
with the EU  acquis. The Federation entity still lacks legislation to protect whistle-blowers, although 
such  protection  is  present  in  the  Sarajevo  Canton.  Where  applicable,  very  few  or  no  requests  for 
protection  were  received,  with  the  exception  of  Sarajevo  Canton,  where  7  requests  out  of  10  were 
granted.  The  Agency  for  the  Prevention  of  Corruption  and  the  Coordination  of  the  Fight  against 
Corruption (APIK) granted the only received protection request. 

Data  protection  laws  continued  to  be  interpreted  in  a  way  that  protects  private  rather  than  public 
interests, hindering the prevention and repression of corruption. There is no legislation to prevent and 
address corruption effectively in the private sector, nor is there any regulation of lobbying. Bosnia and 
Herzegovina  has  satisfactorily  implemented  only  2  of  the  25  recommendations  set  out  in  the 
GRECO’s fifth round evaluation report and only 3 of the 15 recommendations of the previous fourth 
round.  Recommendations  on  political  party  financing  and  conflict  of  interest  remain  largely 
unimplemented.  A  beneficial  ownership  register  of  legal  persons  needs  to  be  drawn  up,  ensuring  a 
central access point for the competent authorities. 

Strategic documents  

Strategic documents in this area are now partly in place with the  2024-2028 State-level strategy and 
action plan on anti-corruption. Entities and cantons need to: (i) update and align their own strategies 
with  the  principles  of  the  State-level  strategy;  (ii)  ensure  sufficient  funding;  and  (iii)  monitor  their 
implementation in a coordinated manner. Only the Sarajevo Canton has done this, while the Republika 
Srpska entity adopted a strategy and action plan without consulting APIK and without reference to the 
State-level  strategy  and  action  plan.  APIK  should  engage  proactively  with  entities  and  cantons  in 
adopting, updating and aligning such strategies. 

Institutional framework  

The  institutional  framework  on  the  fight  against  corruption  is  not  fully  in  place,  and  needs  to  be 
improved in the areas of both preventive measures and law enforcement. Corruption prevention bodies 
continued  to  be  ineffective  and  uncoordinated.  APIK  needs  to:  (i)  meaningfully  and  independently 
fulfil  its  function  as  main  coordinator  and  central  point  for  anti-corruption  activities;  (ii)  implement 
GRECO  recommendations;  and  (iii)  align  with  international  standards.  While  the  director  of  APIK 
resigned in  October  2024 from  his  position,  a  vacancy  was  only  published  in May  2025  and  a  new 
director is yet to be appointed.  

The  authorities  need to  significantly  strengthen  the  independence  of  corruption-prevention  bodies  at 
entity and cantonal level and improve their human and material resources. The Sarajevo Canton anti-
corruption office continued tangible efforts and remains a good example. The Brčko District and some 
cantons (Canton 10, Posavina, Bosnian Podrinje, Zenica-Doboj and Una-Sana) have now put in place 
a  legal  framework  that  should  be  implemented  effectively.  Other  cantons  made  no  progress  in 
adopting the legal framework.  

The  audit  department  of  the  CEC  still  needs  better  capacities  to  monitor  compliance  with  the 
legislation on political party financing. The parliamentary committee on anti-corruption should more 
proactively advocate for anti-corruption legislation in line with European standards.  

The  criminal  justice  policy  and  the  institutional  and  legislative  frameworks  across  the  country  are 
largely ineffective and inadequate. Investigative capacities are insufficient and penalties do not ensure 
deterrence.  Crucial  efforts  to  trace  and  freeze  illegal  gains  from  criminal  activities  and  to  require 
criminals to forfeit their gains remain overall inadequate, with the exception of those led by the State-
level and Sarajevo Canton prosecutor’s offices. Financial investigations are infrequent, and there are 
barely  any  extended  confiscations,  which  prevents  the  disruption  of  criminal  networks.  Frequent 
conflicts of jurisdiction lead to case transfers and slow down proceedings. The police does not launch 
investigations  proactively. In  2024, as  in 2023  and  2022,  no  law-enforcement  agency, including  the 
State Investigation and Protection Agency (SIPA), submitted any report on high-level corruption to the 
Prosecutor’s  Office  of  Bosnia  and  Herzegovina.  The  highly  formalistic  manner  in  which  SIPA 

32 

 
 
enforces  actions  to  obtain  evidence,  including  in  high-level  corruption  cases,  remains  a  cause  of 
serious concern. Systemic shortcomings in operational cooperation between law-enforcement agencies 
and the very limited exchange of intelligence are a persistent challenge.  

Plea  agreements  are  frequent  and  often  involve  lenient  sanctions.  These  plea  agreements  should 
instead  be  used  strategically  to  co-opt  defendants  in  obtaining  information  and  evidence.  In  April 
2025,  the  Prosecutor’s  Office  of  the  Sarajevo  Canton  and  the  Federation  entity  Agency  for  seized 
property assets started conditioning plea agreements on the prior return of proceeds of crime, which is 
a good practice. High-level corruption cases continued to be plagued by selective judicial follow-up, 
legal  mistakes,  negligence,  abuse  of  procedures,  and  questionable  court  decisions.  Pressure, 
interference and verbal attacks on judicial office holders continued, including by politicians, without a 
systemic and efficient response by the HJPC. 

Investigations  are  seriously  hampered  by  both:  (i) the  lack  of cooperation  between  law-enforcement 
agencies and prosecutors’ offices; and (ii) the lack of effective monitoring by prosecutors of the work 
of  the  police.  The  selective  unwillingness  of  the  police,  including  at  State  level,  to  cooperate  with 
prosecutors, particularly in high-level corruption cases, is a cause of serious concern. The cooperation 
between the Republika Srpska entity’s Ministry of Interior and the State-level Prosecutor’s Office and 
Court  of  Bosnia  and  Herzegovina  substantially  deteriorated.  Between  March  and  July  2025,  the 
Republika  Srpska  entity  police  actively  obstructed  the  enforcement  of  arrest  warrants  against  the 
political leadership of the entity by State-level police bodies (SIPA and Border Police). 

Diverging  views  on  the  authority  of  State-level  prosecution  offices  to  issue  instructions  to  entity 
prosecution offices continue to hamper the efficiency of investigations and proceedings in high-level 
corruption cases. Such conflicting legal views must be remedied immediately. 

The special anti-corruption departments within prosecution offices at State level and in the Republika 
Srpska entity must start to deal effectively with high-level corruption cases. Their independence and 
accountability  must  be  significantly  strengthened.  Specialised  departments  in  the  Federation  entity 
Prosecutor’s Office and Supreme Court finally became operational in April 2025, 11 years after the 
legislation was adopted. They should now start to deliver. 

A  specialised  team  of  State-level  prosecutors  continued  to  efficiently  investigate  cases  based  on 
evidence from the SKY ECC communications tool. This led to tangible results in investigations and 
indictments. Prosecutors should: (i) continue to show firm determination in prioritising and finalising 
investigations of mid- and high-level corruption cases arising out of the SKY ECC tool; and (ii) ensure 
efficient judicial follow-up to those cases. The former deputy director of SIPA (previously director of 
the  Border  Police) remains  at  large in  Croatia,  after  illegally  crossing  the  border to escape an arrest 
warrant  for  suspected  abuse  of  position  and  corruption.  An  extradition  request  filed  by  Bosnia  and 
Herzegovina remains pending. 

Fundamental rights  

No action has been taken to address the gaps on fundamental rights. The legal framework needs to be 
improved and its enforcement is insufficient.  

International human rights instruments  

Cooperation  with  international  bodies  that  monitor  human  rights  and  the  follow-up  to  their 
recommendations is insufficient. Bosnia and Herzegovina needs to address the recommendations from 
the  January  2025  Universal  Periodic  Review  of  the  UN  Human  Rights  Council.  The  country  is 
encouraged to seek observer status in the EU Agency for Fundamental Rights and should replicate the 
Agency’s data collection methodology.  

European Court of Human Rights  

33 

 
 
of 

implementation 

Cooperation  with  the  ECtHR  and 
its 
the 
judgements  need  to  be  improved. 
During  the  reporting  period,  the 
ECtHR  found  breaches  of 
the 
European  Convention  on  Human 
Rights  in  regard  to  the  right  to 
respect for private and family life. 
There  are  five  rights-related  cases 
under enhanced supervision by the 
Committee  of  Ministers,  four  of 
which  related  to  electoral  rights. 
The  Sejdić  and  Finci,  Zornić, 
Šlaku,  Pilav  and  Pudarić  rulings 
(i.e.  Sejdić-Finci  case  law)  require  constitutional  amendments to  ensure  political  equality  among  all 
citizens.  Progress  needs  to  continue  on  addressing  other  structural  reforms  raised  by  ECtHR 
judgements. 

Promotion and enforcement of human rights  

The legal and institutional framework for the promotion, protection and enforcement of human rights 
is  incomplete  and  needs  to  be  improved. Bosnia  and  Herzegovina  still  lacks  a  policy  framework 
including countrywide strategies on human rights, non-discrimination and the protection of minorities. 
Consequently, the protection of human rights remains uneven across the country. The Ombudsman is 
accredited since 2014 as an A-status National Human Rights Institution (NHRI). However, the ethnic 
composition 
consensual 
and 
decision  making  of  the  three-
person  Ombudsman  need  reform 
to  ensure  effective  functioning. 
The Ombudsman should act more 
proactively,  and  its  independence 
needs  to  be  strengthened.  While 
only  half  of  its  recommendations 
have  been  complied  with  during 
the 
the 
Ombudsman  has  not  opened  any 
minor  offence  proceedings  for 
non-compliance  in  the  past  10 
years, despite having the power to 
do  so,  nor  has  it  initiated  or 
intervened  in  any  administrative 
or judicial proceedings.  

reporting 

period, 

Prevention of torture and ill-treatment 

Bosnia  and  Herzegovina  provides  insufficient  legal  guarantees  on  the  prevention  of  torture  and  ill-
treatment  and  the  follow-up  to  cases  of  alleged  torture  and  ill-treatment  needs  to  be  improved.  The 
Ombudsman started operating as a national preventive mechanism against torture and ill-treatment in 
March  2025.  The  many  reports  of  ill-treatment  need  to  be  handled  effectively.  Overcrowding,  poor 
material conditions, and inadequate healthcare services continue to raise concerns. Systemic problems 
remain  in  ensuring  humane  and  dignified  treatment  of  detainees  and  uniform  standards  across  the 
country. An effective probation system should be introduced. 

34 

 
 
Execution of criminal sanctions  

The system for the execution of criminal sanctions (including probation)  needs to be improved. The 
continued absence of both a countrywide strategy and reliable statistics in this area is a concern. The 
relevant  laws  need  to  be  harmonised  across  the  country  and  brought  in  line  with  European  and 
international  standards.  Prison  directors  need  to  be  appointed  based  on  merit.  Detention  facilities, 
prison regimes and reintegration programmes need to be improved.  

Protection of personal data  

resources  of 

The  legal  framework  for  the  protection  of  personal  data  has  been  reinforced  but  the  financial  and 
the  Data 
staffing 
Protection  Agency  need  to  be  used  to 
full  capacity,  and  its  independence 
strengthened.  In  January  2025,  Bosnia 
and Herzegovina adopted a Law on the 
protection of personal data in line with 
the  EU  acquis.  The  State-level 
Parliament must consult the Agency on 
legislative  proposals,  but  entities  and 
cantons’ legislative assemblies are still 
not required to do so. 

Freedom of religion or belief  

Bosnia  and  Herzegovina  provides 
adequate  legal  guarantees  on  freedom 
of religion and belief. The Serb Orthodox church returned to the Inter-Religious Council in June 2025, 
restoring  its  full  composition.  Cases  of  discrimination,  hate  speech  and  hate  crimes  on  religious 
grounds persist. Cases of attacks on such grounds continue to occur in minority return areas.  

Transitional justice  

There  is  no  policy  framework  on  transitional  justice  and  dealing  with  the  past.  Bosnia  and 
Herzegovina needs to promote an environment conducive to reconciliation in order to overcome the 
legacies  of  the  war  (Opinion  key  priority  5).  Political  leaders  continued  to  engage  in  historical 
revisionism, including genocide denial and glorification of war criminals, while contesting established 
facts  and  the  independence  or  impartiality  of  international  and  domestic  tribunals.  The  State-level 
criminal code needs to be amended to regulate genocide denial and the glorification of war criminals 
in line with the EU acquis. A first-instance conviction was issued in May 2025 in the first case under 
the 2021 law; another court case is ongoing.  

There  are  no  countrywide  criteria  set  by  law  on  the  rights  of  civilian  victims  of  wartime  torture,  a 
pending obligation under the Convention against Torture. Entity-level laws need to be improved. The 
Council  of  Ministers  is  required  to  address  the  August  2019  decision  of  the  UN  Committee  against 
Torture  on  providing  redress  to  victims  of  wartime  torture  through  an  effective  reparation  scheme, 
including compensation and a formal apology. The Republika Srpska entity has not taken measures to 

35 

 
 
waive court fees for victims of wartime torture. As a worrying consequence of this, victims continue to 
face  repossession  of  property  for  defaulting  on  mortgage  payments.  The  Federation  entity  and  the 
Brčko  District  continue  not  to  implement  their  legislation  to  accord  the  status  of  civilian  victims  of 
war  to  children  born  of  wartime  sexual  violence.  Positive  initiatives  continue  at  local  level,  often 
driven  by  civil  society,  including  women’s  and  veterans’  groups  working  for  peacebuilding, 
reconciliation  and  remembrance.  (For  missing  persons,  see  Section  3  –  Good  neighbourly  relations 
and regional cooperation). 

---------------------------------------------------------------------------------------------------------------------------
------------------------------ 

Freedom of expression  

Intimidation of journalists  

Political pressure,  verbal attacks, intimidation and threats against journalists continued, including by 
high-level  politicians,  and  in  particular  against  women  journalists.  Instead  of  demonstrating  zero 
tolerance  towards  these  threats  and  attacks,  the  authorities  continued  downplaying  these  issues.  A 
countrywide  network  was  set  up  to  monitor  these  cases;  the  authorities  need  to  ensure  its 
sustainability,  and  demonstrate  a  track  record  in  institutional  follow-up.  The  HJPC  has  started  to 
collect  official  data  and  reported  36  attacks.  The  BH  Novinari  journalists’  association  received  54 
complaints in 2024 (84 in 2023), and the Ombudsman 9. The abuse of strategic lawsuits against public 
participation (SLAPP) further fuels self-censorship; their number increased markedly in the course of 
2024 (35 in 2024 compared with 41 in the preceding 10 years). This underlines  the urgency to align 
with the EU’s anti-SLAPP legislation and initatives. 

Legislative environment  

Constitutional  and  legal  guarantees  are  unevenly  implemented.  Criminal  penalties  for  defamation in 
the  Republika  Srpska  entity  continue to  have  a  chilling  effect.  Defamation  should be  decriminalised 
across  the  country.  The  Republika  Srpska  law  targeting  civil  society  groups  as  ‘foreign  agents’, 
adopted  in  February  2025  and  repealed  in  May  by  the  Constitutional  Court,  adversely  affected 
freedom of association, expression and of information, in particular for those media groups registered 
as  NGOs,  as  it  introduced  disproportionate  sanctions  (ban  on  associations  and  criminal  liability  of 
their managers) without appropriate procedural standards.  

Implementation of legislation/institutions  

The  Communications  Regulatory  Agency  still  lacks  political  and  financial  independence.  The 
procedure  to  appoint  its  management  needs  reform  to  limit  political  influence.  A  new  board  of  the 
agency was finally appointed in October 2024 after six years of delay.  

Public service broadcaster  

No  progress  was  made  in  ensuring  the  financial  sustainability  of  the  country’s  public  broadcaster, 
Radiotelevizija Bosne i Hercegovine (BHRT). Deprived of stable funds, and in lengthy court litigation 
with entity-level broadcasters, BHRT remains in serious danger of shutting down. In March 2025, the 
Constitutional Court found that BHRT’s property rights had been violated. In July, the Supreme Court 
of  Republika  Srpska  confirmed  that  BHRT  is  entitled  to  a  part  of  the  fees  collected  in  the  entity. 
RTRS’s debt to BHRT amounts to some 50 million EUR.  

No  steps  were  taken  to  protect  State  and  entity-level  public  broadcasters  from  political  influence 
exerted  via  their  politically  controlled  steering  boards.  The  Federation  entity  assembly  appointed  a 
director  and  steering  board  for  the  FTV  public  broadcaster  between  April  and  June  2025,  after  12 
years of delay. Radio Televizija Republike Srpske (RTRS) continues to spread Russian disinformation, 
including both on Russia’s war of aggression against Ukraine and on Bosnia and Herzegovina’s EU 
path.  

Economic factors 

36 

 
 
In the reporting period, only initial steps were taken to: (i) adopt legislation on transparency in media 
ownership,  including  on  the  prevention  of  hidden  media  concentration;  (ii)  adopt  legislation  on 
transparency  in  public  advertising;  or  (iii)  adopt  criteria for  distributing  subsidies  in the media.  The 
advertising practices of public companies such as telecom and advertising agencies linked to political 
parties  continue  to  harm  media  integrity.  Local  broadcasters  funded  by  cantonal  and  municipal 
authorities remain subject to political pressure and influence. 

Internet  

Online platforms continue to be used to spread hate speech and disinformation, as self-regulation of 
online  media  has  a  limited  effect.  Criminal  prosecution  remains  limited  to  cases  of  incitement  of 
religious and ethnic hatred online.  

Professional organisations and working conditions 

Journalism remains a precarious profession, with low wages or job security. Labour rights are barely 
respected, unionisation remains low, and there are no branch collective agreements for media workers. 
Consequently,  many  receive  a  salary  significantly  lower  than  average  while  also  working  overtime. 
The  situation  is  even  worse  for  women  journalists.  Compliance  with  the  Press  and  Online  Media 
Council’s media code remains inconsistent. The sudden closure of Al Jazeera Balkans in July 2025 left 
some 200 journalists without a job. 

Freedom of artistic expression is guaranteed by law and generally respected. Addressing themes such 
as  reconciliation,  women’s  rights,  and  LGBTIQ  issues  remains  a  challenge,  particularly  in  the 
Republika Srpska entity.  

---------------------------------------------------------------------------------------------------------------------------
-------------------------- 

Freedom of assembly and association  

The legal guarantees for freedom of assembly and association vary across the country. Cantonal laws 
on freedom of assembly are slowly being harmonised with each other and with European standards, in 
particular in the areas of grounds for restriction of this freedom and the responsibility of organisers. 
Three more cantons (West Herzegovina, Central Bosnia, and Posavina) adopted legislation aiming to 
align  their  laws  in  these  areas  with  European  standards.  Nevertheless,  the  main  urban  centres 
(Sarajevo,  Banja  Luka,  Tuzla,  Mostar)  remain  in  jurisdictions  with  laws  that  are  not  in  line  with 
European standards. 

Freedom  of  association  faces  increasing  challenges.  The  law  adopted  in  February  2025  in  the 
Republika  Srpska  entity  targeting  civil  society  groups  as  ‘foreign  agents’  imposed  excessive  and 
unreasonable  restrictions,  stigmatised  foreign  funded  organisations,  expanded  control  over  their 
activities,  and  undermined  legal  certainty.  The  Constitutional  Court  of  Bosnia  and  Herzegovina 
suspended the law in March, and repealed it in May. The entity authorities need to respect the ruling 
and  not  attempt  to  enact  this  unconstitutional  law.  The  Law  on  associations  adopted  in  the  West 
Herzegovina  Canton  in  February  2025  fragments the  legal  framework  in  the  entity  by  repealing the 
entity legislation in this area, and raises concerns about legal certainty, equal treatment, and alignment 
with European standards. 

Labour and trade union rights are covered in Chapter 19 – Social policy and employment. 

Property rights  

The legal and institutional framework for enforcing property rights is incomplete. No steps were taken 
to update and interconnect the entity-level cadastral and land registry databases and no solution was 
found to pending repossession cases. The Commission for real property claims of displaced persons 
and refugees remains inoperative. There is no legislative framework on restitution claims, which are 
handled case by case. The Federation entity needs to amend its legislation in line with several ECtHR 
cases on occupancy rights (Đokić, Mago, Alekšić cases). 

Non-discrimination  

37 

 
 
The  legal  and  institutional  framework  on  non-discrimination  remains  to  be  fully  aligned  with  the 
acquis, including as regards the Racial Equality Directive and the Directives on standards for equality 
bodies. There  is  no  countrywide  non-discrimination  strategy.  The  2009  Law  on  the  prohibition  of 
discrimination is still not applied effectively.  In 2024, the courts received 1738 discrimination cases 
(2 560  in  2023).  Discrimination  is  still  under-reported,  particularly  in  the  workplace,  and  judicial 
practice  in  addressing  discrimination  is  inconsistent  (in  particular  on  burden  of  proof),  lengthy  and 
hardly enforced. The Ombudsman registered 196 cases of discrimination  in 2024, in line with recent 
years, mostly for workplace and ethnic discrimination. The Herzegovina-Neretva and Central Bosnia 
cantons continue to ignore the 2014 and 2021 rulings of the Federation entity Supreme Court, which 
require  eliminating  the  practice  of  ‘two  schools  under  one  roof’  to  ensure  inclusive  and  non-
discriminatory education for all students.  

Legislation on hate crime and hate speech is harmonised across the country’s four criminal codes, but 
remains  to  be  fully  aligned  with  the  EU  acquis  and  European  standards.  Entity-level  legislation 
criminalises hate speech only when causing national, racial and religious hatred and still needs to be 
aligned with the EU acquis and European standards. There are very few indictments and convictions, 
due  to  a  failure  to  identify  acts  as  hate  crimes  and  the  high  burden  of  proof  to  establish  intent.  In 
addition,  case  law  is  inconsistent.  Hate  speech  remains  present  in  official  discourse,  and  there  is 
insufficient monitoring or enforcement of online offences.  

Gender equality  

The  legal  and  institutional  framework  on  gender  equality  and  combating  gender-based  violence  is 
incomplete and implementation/enforcement needs to be improved. Legislation on gender equality is 
still  not  harmonised  across  the  country  nor  is  it  enforced  effectively.  The  2023-2027  gender  action 
plan still lacks funds and monitoring. Despite being required by law, gender impact assessments are 
not carried out. Although the country has developed a partial gender equality index, institutions need 
to improve data collection, including on gender-based violence.  

38 

 
 
The  Federation  entity  adopted  a  Law  on  protection  from  domestic  violence  and  violence  against 
women in March 2025 and amended its criminal code in July 2025, improving overall alignment with 
the Istanbul Convention and the EU 
acquis.  These  legislative  changes 
now  need  to  be  implemented  in 
gender-based 
practice.  While 
violence  and  domestic  violence  is 
one  of  the  most  reported  crimes 
across the country, prosecution and 
sentencing  remain  too  slow  and 
inconsistent. Improvements are also 
needed on: (i) issuing and enforcing 
protective  measures;  (ii)  ensuring 
specialised 
the 
support services; (iii) legal aid; and 
(iv) 
safe  accommodation.  The 
institutional  response  to  femicide  remains  insufficient,  including  for  cases  garnering  wide  public 
attention  and  exposing  systemic  institutional  shortcomings.  Women  from  ethnic  minorities, 
particularly Roma9 women and women in rural areas, face additional discrimination and obstacles in 
accessing services, evading violence, and assuming visibility and leadership roles. 

availability  of 

Women’s  rights  organisations  experience  significant  pushback  to  their  advocacy  and  their  members 
receive  threats.  Government-funded  networks  and  associations  in  the  Republika  Srpska  entity 
systematically  aim  to  roll  back  women’s  rights  and  gender  equality  under  the  guise  of  promoting 
traditional values, including through intimidation. (See also Chapters 19 and 28; on women victims of 
trafficking, see Chapter 24) 

Rights of the child  

The legal and policy frameworks for the protection of children’s rights should be brought in line with 
EU  acquis,  and  the  implementation  harmonised  across  the  country.  Bosnia  and  Herzegovina  should 
draw  guidance  from  key  European  Commission  recommendations,  in  particular  on  integrated  child 
protection systems. No steps were taken to adopt an action plan on protecting the rights of the child, 
seven  years  after  the  previous  one  expired  in  2018.  Bosnia  and  Herzegovina  should  step  up  the 
implementation of action plans on the protection of all children, including children with disabilities, 
from  all  forms  of  violence  including  domestic  violence,  digital  violence,  abuse,  exploitation, 
trafficking in human beings, poverty and neglect. In 2024, the Ombudsman received 299 complaints 
on  children’s  rights, up from  231 in  2023.  The country  needs  to  accelerate the deinstitutionalisation 
process, and urgently develop action plans to implement the related roadmaps. As of June 2025, there 
were 1 225 unaccompanied and separate migrant children in Bosnia and Herzegovina.  

No  action  was  taken  to  ensure  child-friendly  justice,  including  for  children  belonging  to  minorities, 
migrant children and children with disabilities. This is cause for concern. Entity-level laws on juvenile 
justice  have  still  not  been  fully  implemented  or  harmonised  with  each  other.  There  are  no  separate 
units  for  juveniles  during  pre-trial  detention  and  in  police  stations.  This  is  a  serious  breach  of 
international law that urgently needs to be remedied. Alternatives to the detention of children need to 
be  preferred.  Only  limited  reintegration  measures  are  available  to  juveniles  upon  their  release  from 
detention  or  State  custody.  As  of  September  2025,  there  were  3  minors  in  prison,  down  from  28  in 
2023.  

Persons with disabilities  

The  legal  and  institutional  framework  on  the  rights  of  persons  with  disabilities  is  incomplete  and 

9  In  line  with  the  terminology  of  European  institutions  the  umbrella  term  ‘Roma’  is  used  here  to  refer  to  a 
number of different groups, without denying the specificities of these groups. 

39 

 
 
 
implementation and enforcement need to be improved. The lack of dedicated funds hinders progress. 
The  country  needs  to  both  ensure  a  uniform  definition  of  disability  in  line  with  international 
conventions and harmonise eligibility criteria for, rights to, and standards of social protection. It also 
needs to  align  its legislation  with  the  EU  acquis,  including  in  the  area  of  accessibility,  and  develop 
models  for  supported  decision-making  which  promote  the  independence  and  autonomy  of  persons 
with  disabilities.  Persons  with  disabilities,  including  children,  continue  to  face  hurdles,  stigma  and 
discrimination in accessing education, healthcare, employment and social assistance. The Council for 
Persons  with  Disabilities  needs  to  be  further  involved  in  all  relevant  legislative  processes.  The 
authorities also need to improve data collection, including sex-disaggregated data. Many children with 
disabilities  continue  to  be  placed  in  residential  institutions  in  severe  violation  of  international 
conventions.  The  ongoing  reform  of  child  disability  assessments  should  be  implemented  across  the 
country.  Bosnia  and  Herzegovina  needs 
implement  a 
deinstitutionalisation strategy  to move  towards  independent  living  and  the inclusion of  persons  with 
disabilities.  

to  urgently  develop,  adopt  and 

LGBTIQ persons  

LGBTIQ  persons  face  high  levels  of  discrimination,  and  the  legal  protection  of  their  rights  is 
insufficient. Bosnia and Herzegovina needs to fully implement the 2022-2026 action plan on the rights 
of LGBTIQ persons. The sixth Sarajevo Pride Parade took place peacefully in June 2025. Hate crimes 
and hate speech against LGBTIQ persons remain widespread, including harmful comments by public 
figures,  and  remain  insufficiently  prosecuted,  despite  existing  legal  provisions.  The  March  2023 
physical  attack  on  LGBTIQ  activists  in  Banja  Luka  is  yet  to  receive  institutional  follow-up.  In 
April 2025, the Republika Srpska entity government removed gender identity as grounds for protection 
in its criminal code, which is now no longer in line with the State-level anti-discrimination law. This 
constitutes a serious step backwards. No action was taken to recognise and ensure the enjoyment of 
social  and  economic  rights  of  same-sex  couples,  including  the  right  to  a  family  life,  in  line  with 
ECtHR  jurisprudence.  Intersex  and  transgender  persons  continue  to  be  particularly  marginalised.  In 
October 2024 the  Republika Srpska entity’s Constitutional Court decided that the term ‘gender’ was 
unconstitutional, prompting a change in the name of the entity’s centre for gender equity and equality. 

Procedural rights and victims’ rights  

The legal framework on procedural rights for suspects and accused and the rights of victims of crime 
is insufficiently aligned with the EU  acquis. The extent to which in particular witnesses and victims 
can enjoy their rights remains uneven across the country. No action was taken to harmonise the four 
criminal procedure codes in force across the country and ensure their consistent enforcement. Bosnia 
and Herzegovina needs to ensure the effective enjoyment of key procedural rights, such as the right of 
access to a lawyer, in particular during situations of deprivation of liberty. A law protecting the right 
to be tried within a reasonable time is still pending adoption in the Federation entity. Legislation is not 
aligned  with  the  EU  acquis  on  victims’  rights,  including  on  compensation  to  victims  of  crime, 
although  related  services  are  available.  Without  comprehensive  coverage  and  minimum  common 
standards, the right to legal aid is still upheld unevenly, to the detriment of the most vulnerable. The 
Federation entity and the Herzegovina-Neretva and Central Bosnia cantons still have no legislation on 
legal aid. A needs assessment is yet to be conducted to identify and address the main gaps on legal aid.  

Protection of minorities 

The  legal  and  institutional  framework  for  the  protection  of  persons  belonging  to  minorities  is 
incomplete,  and  persons  belonging  to  minority  groups  face  discrimination. No  progress  was  made 
towards adopting a countrywide strategy on persons belonging to minorities, and their participation in 
political and public life remains low. The Councils of National Minorities should proactively develop 
practical, political and legislative initiatives to promote this. Members of national minorities and non-
affiliated  citizens still cannot run  for the  Presidency  and  House  of  Peoples,  in  breach  of  the  ECtHR 
Sejdić-Finci case law, pending the adoption of constitutional reforms to ensure the political equality 
and non-discrimination of all citizens.  

Roma  

40 

 
 
The  legal  and  institutional  framework  on  Roma  should  be  improved.  The  Roma  remain  the  most 
vulnerable  and  disadvantaged  minority  due  to  stereotypes,  prejudices,  discrimination  and  anti-
gypsyism, leading to social exclusion. Sufficient funds are not made available to implement the action 
plan  on  Roma  inclusion,  which  should  be  aligned  with  the  EU  Strategy  for  Roma  Inclusion  2020-
2030.  There  was  only  limited  progress  in  implementing  the  Poznań  Declaration  commitments. 
Discrimination in employment remains rampant, and unemployment is very high among the Roma, in 
particular  for  women.  Roma  women  face  multiple  forms  of  discrimination,  and  are  often  victim  of 
gender-based  and  domestic  violence,  trafficking  in  human  beings,  including  labour  exploitation  of 
children and forced early marriages. Enrolment rates in compulsory education have increased, but too 
many Roma children still drop out of school. Although education is not segregated by ethnicity, there 
is no teaching in or of the Romani language (save as an elective subject in Tuzla Canton), and public 
awareness of Roma culture is very limited. Only around two thirds of Roma have access to healthcare; 
children outside formal education and elderly persons face the greatest hurdles in accessing healthcare.  

Refugees and internally displaced persons 

Bosnia  and  Herzegovina  continues  to  host  around  90 000  wartime  refugees  and  internally 
displaced  persons,  with  over  1 000  families  still  living  in  45  collective  centres  and  in  alternative 
accommodation.  The  authorities  still  need  to  provide  them  with  sustainable  housing  solutions  and 
access to services, in line with the objectives of Annex VII of the Dayton Peace Agreements.  

Citizenship rights 

Citizenship rights are hindered by constitutional and legal structures that restrict political participation 
and  equality,  especially  for  minority  groups.  There  are  also  challenges  in  accessing  documentation, 
with  some  groups  facing  difficulties  in  obtaining  or  verifying  citizenship,  impacting  their  ability  to 
exercise their rights. 

2.2.2.  Chapter 24: Justice, freedom and security  

The EU has common rules for border and migration management, visa policy, and asylum. Schengen 
cooperation entails the lifting of border controls inside the EU. There is also cooperation in the fight 
against serious and organised crime and terrorism, and judicial, police and customs cooperation, all 
with the support of the EU agencies for Justice and Home Affairs. 

Fight against serious and organised crime 

Bosnia and  Herzegovina’s legal  framework  on  serious  and  organised crime  is  partially aligned  with 
the EU acquis, and the capacity to fight serious and organised crime needs to be improved. 

Legal alignment, strategic and institutional frameworks 

Police  legislation  needs  to  be  further  aligned  with  European  standards  and  harmonised  across  the 
country.  This  gap  hampers  police  operational  capacities,  accountability  and  integrity  at  all  levels. 
Police  oversight  mechanisms  via  independent  parliamentary  boards  need  to  be  further  strengthened. 
Bosnia and Herzegovina’s former Minister of Security was arrested in December 2024 for corruption 
allegations  and  resigned  in  January;  the  post  has  been  vacant  since  then.  The  Director  of  the 
Federation  entity’s  police  administration  has  not  been  appointed  since  2019,  thus  hindering  law 
enforcement  capacities.  The  Law  on  police  of  Brčko District, adopted in July  2025,  undermines the 
principles of equality and further contributes to fragmenting police legislation. Police directors need to 
be selected without further delay, in line with the law and based on merit and integrity. Standardised 
selection criteria for police recruitment are needed to minimise political interference, particularly for 
senior managers. The professionalism, integrity and accountability of law-enforcement agencies need 
to be significantly improved. In July 2025, the Republika Srpska entity adopted amendments to set up 
a police reserve force. 

The legal framework on the fight against organised crime is partially aligned with the EU acquis. A 
strategy  to  fight  organised  crime  for  2023-2026  is  being  implemented  through  action  plans.  Bosnia 
and Herzegovina needs to develop a new serious and organised crime threat assessment (SOCTA), in 
line with Europol methodology.  

41 

 
 
Bosnia  and  Herzegovina  should  put  in  place  State-level  capacities  for  asset  confiscation  and 
management by: (i) adopting the Law on asset confiscation and management in line with EU acquis 
and (ii) establishing or designating an asset recovery office. Extended and third-party confiscations are 
rarely used. By law, confiscation of assets requires a court conviction. 

Bylaws  still  need  to  be  adopted  on  anti-money  laundering  and  countering  the  financing  of 
terrorism  (AML/CFT).  In  July  2025, 
the  Council  of  Ministers  established  a 
permanent  coordination  body  for  the 
prevention  of  money  laundering  and 
financing  of  terrorist  activities  and 
proliferation  of  weapons  of  mass 
destruction.  Bosnia  and  Herzegovina 
needs  to  urgently  address  the  2024 
Moneyval recommendations.  

align 

legislation 

to 
Bosnia  and  Herzegovina  needs 
further 
on 
its 
cybercrime  with  the  EU  acquis  and 
European  standards,  and  to  sign  the 
second  additional  protocol 
the 
Budapest  Convention  on  Cybercrime. 
The country also needs to complete its 
strategic 
fighting 
cybercrime;  at  present  a  strategy  is 
only  in  place  in  the  Republika  Srpska 
entity. The legislation on child sexual abuse online and offline needs further alignment with the EU 
acquis.  

framework 

on 

to 

The  legal  framework  on  trafficking  in  human  beings  is  yet  to  be  aligned  with  the  EU  acquis.  A 
strategy for 2024-2027 in this area was adopted in October 2024, while the corresponding action plan 
is  still  pending  adoption.  The  task  force  for  fighting  trafficking  in  human  beings  and  irregular 
migration remained the only coordination body in Bosnia and Herzegovina tackling both crimes, with 
a  State  coordinator  for  fighting  trafficking  in  human  beings.  The  special  department  in  the 
Prosecutor’s  Office  of  Bosnia  and  Herzegovina  requires  additional  staff.  Evidentiary  proceedings  in 
this area still require additional standardisation.  

Legislation on witness protection is largely aligned with international and European standards. 

On firearms control, the country still needs to establish a firearms focal point and align the criminal 
codes with the UN Firearms Protocol. The legislation on the possession of weapons by civilians and 
on explosives needs to be harmonised across the country and further aligned with the EU  acquis. A 
new  strategy  and  an  action  plan  for  the  control  of  small  arms  and  light  weapons  were  adopted  in 
April 2025. The country needs to progress in implementing effectively the objectives of the regional 
roadmap on SALW control. The State-level criminal code needs to be amended on illicit production 
and trade of weapons, military equipment and dual use goods.  

Implementation and enforcement capacity 

Systemic  shortcomings  remain  in  the  operational  cooperation  between  State-  and  entity-level  law 
enforcement agencies, at times due to political interference. In March 2025, SIPA staff members were 
subject to political pressure to resign and join the Republika Srpska entity’s Ministry of Interior. After 
a prolonged absence, the SIPA director returned to work in July, enabled by the Council of Ministers’ 
failure to process his resignation. This casts serious doubts about his political independence and raises 
questions of accountability. 

After  they  failed  to  respond  to  prosecutorial  summons,  in  March  2025  the  Court  of  Bosnia  and 
Herzegovina issued arrest warrants against the Republika Srpska entity President, prime minister and 

42 

 
 
assembly speaker,  who  remained  fugitives until  July  2025.  In  this  four-month period, the  Republika 
Srpska  entity  police  actively  obstructed  the  enforcement  of  arrest  warrants  against  the  political 
leadership  of  the  entity  by  State-level  police  bodies.  The  case  revealed  systemic  shortcomings  and 
inefficiency in the work of prosecution and police agencies.  

The  country  needs  to  step  up  the  fight  against  cross-border  organised  crime.  Law  enforcement 
agencies need to proactively launch investigations. The cases concluded by plea bargain agreements 
doubled to 20, though the number of individuals concerned decreased slightly. 

There  is  no  consistent  policy  across  the  country  for  timely  and  systematic  financial  investigations. 
Their  number  remained  stable  at  27  investigations  in  2024  compared  with  28  in  2023.  Guidelines 
issued by the HJPC need to be implemented effectively.  

For  money  laundering  as  a  stand-alone  crime,  there  were  39  investigations  in  2024  and  30 
convictions against 36 individuals, resulting in only 3 prison sentences for 4 individuals.  

The freezing, management and confiscation of criminal assets is not applied effectively. The value 
of assets confiscated in 2024 slightly decreased, despite an increase in the number of cases (EUR 7.6 
million in 163 cases in 2024 compared with EUR 8.4 million in 128 cases in 2023). 

There was some progress on joint operations tackling serious and organised crime. However, both the 
exchange  of intelligence  and  cooperation among  law  enforcement  remains insufficient.  Intelligence-
led  policing  should  be  systematically  used.  Bosnia  and  Herzegovina  took  part  in  international 
operations,  and  cooperation  with  Europol  significantly  increased  in  2024,  in  particular  on  firearms 
trafficking, migrant smuggling, and counterfeit goods. Cooperation in the field of cybercrime and the 
fight against terrorism remained low.  

Bosnia and Herzegovina participated in seven operational task forces, four of which were focused on 
the fight against irregular migration, two on drug trafficking and one on trafficking in human beings. 
The number of cases initiated to Europol rose to 363 in 2024 (up from 165 in 2023 and 57 in 2022). In 
2024, Bosnia and Herzegovina increased its participation in the European multidisciplinary platform 
against criminal  threats (EMPACT),  with  25  operational  actions  during  the  year  (in  3  of  which, the 
country was a co-leader), compared with 12 in 2023.  

Bosnia and Herzegovina needs to revise the working arrangement for cooperation with the EU Agency 
for Law Enforcement Training (CEPOL). The authorities are invited to step up their participation in 
training activities offered by the agency and integrate the gained knowledge and competencies into the 
domestic law enforcement training system.  

Tools for practical  cooperation between prosecutors’ offices and the police still require structural 
improvements, and there have been no 
positive  changes  in:  (i)  the  quality  of 
the reports; (ii) the collection, analysis 
and  sharing  of  data;  or  (iii)  the 
capacity 
joint 
investigation teams.  

specialised 

of 

of 

the 

to  be 

The  electronic  exchange  of  data 
among 
police 
records 
authorities  and  prosecution  offices 
needs 
improved.  Forensic 
capacity remains fragmented. There is 
still  no  operational  countrywide  DNA 
database,  and  DNA  profiling  capacity 
remains  limited.  The  swift  exchange 
of  forensic  data  with  other  countries 
remains limited. The creation of a new 
information 
fingerprint 
automated 

43 

 
 
system (AFIS) is long overdue.  

SIPA’s witness protection unit improved its operational response to vulnerable witnesses, including 
protection of their identity online. Inter-agency cooperation in international relocation procedures also 
improved. Operational measures require additional improvements, especially for both the risk analysis 
in designating the status of witness and relocation proceedings. 

The  authorities  should  strengthen  their  capacity  to  tackle  cybercrime  effectively,  including  online 
child sexual abuse. Law enforcement authorities increased their participation in Europol-led operations 
in the fight against child sexual exploitation. Yet, convictions remain very low.  

The  detection,  identification  and  compensation  of  victims  of  trafficking  in  human  beings  need  to 
improve.  The  Prosecutor’s  Office  of  Bosnia and  Herzegovina continued  its coordination  efforts,  but 
the  number  of  new  investigations  reached  the  lowest  in  six  years.  In  2024,  the  number  of  potential 
victims detected (37) remained the same as in 2023, with a growing share of male victims (56%) and a 
large majority of child victims (67%). Additional measures are needed to prevent child trafficking, as 
highlighted  by  the  case  of  31  minors  found  in  the  Brčko  District  in  February  2025.  International 
cooperation in this area has improved in the reporting period thanks to instruments such as operational 
task forces and joint investigative teams.  

On trafficking in firearms, a total 2024, 743 
firearms,  29  675  pieces  of  ammunition,  132 
pieces of mine explosives and 2 of explosives 
were  seized  in  2024,  which  represents  an 
overall  decrease  compared  with  2023.  New 
investigations  on 
in  firearms 
increased slightly.   

trafficking 

to  handle 
Law  enforcement’s  capacity 
gender-based  violence  cases  has  improved 
over the past decade, but gaps remain due to 
lack of specialisation and staff turnover. 

Cooperation in the field of drugs  

The  legal  framework  for  cooperation  in  the 
to  be 
fight  against 
improved as does the quality of this cooperation in practice. 

illegal  drugs  needs 

Legal alignment, strategic and institutional frameworks 

The  legal  framework  is  only  partly  aligned  with  the  EU  acquis.  The  law  still  requires  the  entire 
quantity of drugs seized in a case to be presented as evidence in  court proceedings. There is still no 
new strategy on drugs. However, the Sarajevo Canton’s 2024-2028 strategy and action plan on drugs 
are  both  being  efficiently  implemented.  Bosnia 
and Herzegovina should step up cooperation with 
the  European  Union  Drugs  Agency  (EUDA), 
designate  a  correspondent  agent  for  the  EUDA, 
and put in place a working arrangement. Bosnia 
and Herzegovina should also: (i) set up a national 
drugs  observatory;  (ii)  provide  information  in 
line  with  EUDA  requirements;  (iii)  adopt 
legislation  on  new  psychoactive  substances  and 
introduce  an  early  warning  system;  and  (iv) 
establish  a  focal  point  for  drug  issues  for  the 
entire country.  

44 

 
 
Implementation and enforcement capacity  

Bosnia and Herzegovina remains both a transit country and final destination for drugs. In June 2025, 
the Council of Ministers appointed a new commission responsible for the destruction of seized drugs 
and  precursors,  thus  creating  the  conditions  for  effective  action.  The  last  destruction  took  place  in 
March  2021.  The  number of  new investigations  launched  during  the  year increased slightly,  but the 
total amount of seized drugs decreased.  

Fight against terrorism and prevention of radicalisation and violent extremism  

The  legal framework  for  the  fight  against terrorism is  partially  aligned  with  the  EU  acquis, and  the 
fight against terrorism needs to be improved. The legal framework for countering violent extremism 
and  for  protecting  critical  infrastructure  /  resilience  of  critical  entities  is  not  aligned  with  the  EU 
acquis. The operational response needs to be improved on both of these aspects. 

Legal alignment, strategic and institutional frameworks  

Criminal legislation needs to be amended to align the list of criminal offences with the EU acquis and 
ensure stricter sanctions for  terrorism.  Legislation  on  the  protection  of  critical  infrastructure  and the 
resilience of critical entities remains to be developed and adopted at all levels of government (such a 
law  is  only  in  place  in  the  Republika  Srpska  entity).  Legislation  on  explosives  precursors  and  the 
rights of terrorism victims still needs to be aligned with the EU acquis. The country needs to urgently 
address Moneyval recommended actions on countering the financing of terrorism. 

Implementation and enforcement capacity  

The  cooperation  among  authorities  competent  for  countering  terrorism  has  been  hampered  by  the 
political situation – at both strategic and operational level – and needs to become more structured and 
efficient.  The  response  to  terrorist  attacks  needs  to  be  reviewed  and  better  prepared  by  developing 
standard operating procedures. Bosnia and Herzegovina actively participates in the counter terrorism 
support network (CTSN) established with CEPOL support. 

Bosnia  and  Herzegovina  needs  to  step  up  the  implementation  of  the  2021-2026  strategy  and  action 
plans against terrorism and violent extremism, as well as the bilateral arrangement with the EU under 
the Joint Action Plan on counter terrorism for the Western Balkans. The criminal code remains to be 
amended in line with the Joint Action Plan.  

There  was  no  repatriation  of  foreign  terrorist  fighters  during  the  reporting  period,  and  around  160 
citizens of Bosnia and Herzegovina (including 41 women and 77 children) remain in Syria and Iraq. 
Bosnia and Herzegovina needs to develop a comprehensive reintegration policy.  

In 2024, 14 investigations for terrorism were 
initiated  against  15  individuals  (the  double 
than  in  2023)  with  three  final  convictions. 
Security  agencies  and  local  authorities  need 
to develop a coordinated approach to prepare 
the release from prison of terrorism offenders 
who have served their sentences, and provide 
assistance  to  help  them  disengage  from 
violent extremism. 

to 

the  capacity 

Bosnia  and  Herzegovina  needs  to  further 
develop 
investigate  and 
prosecute  the  financing  of  terrorism  and 
address  threats  posed  by  new  technologies. 
There 
is  a  need  for  capacity  building, 
especially  in  dealing  with  cryptocurrencies  and  online  content.  Authorities  should  improve 
collaboration with the EU internet referral unit at Europol and proactively exchange information via 
the Europol contact point. Concrete measures need to be put in place to counter terrorist content online 
and prevent online radicalisation, in particular of youth. 

45 

 
 
Civil society and the institutions responsible for labour, social welfare, education, young people and 
health at all levels of government need to be more effectively included in efforts to prevent terrorism 

and radicalisation, and in the implementation of the counter-terrorism strategy.  

Judicial cooperation in civil and criminal matters  

Judicial  cooperation  in  civil  and  criminal  matters  needs  to  be  improved.  The  contry  still  needs  to 
accede to core instruments under the Hague conference on private international law.  

Between  March  2024  and  July  2025,  Bosnia  and  Herzegovina  was  involved  in  18  new  cases  at 
Eurojust, including 6 joint investigation teams, most of which related to swindling, fraud and money 
laundering.  In  2025,  Bosnia  and  Herzegovina  ratified  an  agreement  with  the  EU  on  judicial 
cooperation  in  criminal  matters  with  Eurojust;  the  country  now  needs  to  conclude  a  working 
arrangement. A working arrangement between the Prosecutor’s Office of Bosnia and Herzegovina and 
the European Public Prosecutor’s Office (EPPO) is in place. In 2024, the EPPO sent three requests for 
mutual legal assistance to the authorities of Bosnia and Herzegovina. 

Legal and irregular migration 

The  legal  framework  for  managing  legal  and  irregular  migration  is  partially  aligned  with  the  EU 
acquis. The management of legal and irregular migration needs to be further improved.  

Legal alignment, strategic and institutional frameworks 

There is still no budget allocated to implement the 2021-2025 strategy and action plan on migration 
and  asylum.  Bosnia  and  Herzegovina  increased  its  annual  quota  of  work  permits  for  foreign 
employment  to  7 229  in  2025  (compared  with  5 798  in  2024),  reflecting  labour  market  demands. 
Authorities  should  develop  a  comprehensive  approach  to  labour  migration,  and  ensure  that  a  due 
diligence  mechanism  is  in  place  to  prevent  labour  exploitation,  and  that  legal  pathways  for  third 
country nationals prevent irregular secondary movements to the EU. 

Implementation 
enforcement capacity  

and 

Bosnia and Herzegovina did not 
make  progress  in  taking  over 
responsibility 
for  managing 
reception  centres. 
temporary 
The competent agencies remain 
significantly  understaffed  and 
only  very  limited  funding  is 
available  to  manage  migration. 
Coordination and the sharing of 
responsibility  among  all  levels 
remain 
of 
insufficient. In 2024, fewer people entered the country irregularly than in 2023 (25 284 cases reported; 

government 

46 

 
 
26.5%  decrease).  A  total  of  40 385  migrants  were  registered  as  staying  in  the  four  EU-funded 
temporary  reception  centres  in  the  Una-Sana  and  Sarajevo  cantons  throughout  2024.  Reception 
capacities  are  adequate,  and  the  Service  for  Foreigners’  Affairs  of  the  Ministry  of  Security  is 
registering most migrants staying in the reception centres. 

Bosnia  and  Herzegovina  needs  to  improve  the  legal  framework  and  implementation  procedures  for 
voluntary and forced return, which remain mostly based on donors’ assistance. In 2024, Bosnia and 
Herzegovina  carried  out  over  three times  more  voluntary  returns  than  in  2023  (446  in  2024;  123  in 
2023) and 14 forced returns (compared with 43 in 2023) to countries of origin.  

Bosnia and Herzegovina has readmission agreements with the EU which continued to be implemented, 
together with protocols, further facilitating its implementation, signed with 13 Member States. A total 
of  62  persons  were  returned  under  these  agreements.  Accelerated  readmission  procedures  with 
neighbouring countries remain suspended, except with Croatia.  Discussions to conclude readmission 
agreements  with  third  countries  and  further  agreements  or  arrangements  with  countries  of  origin 
should  continue.  In  2024,  Bosnia  and  Herzegovina  accepted  3 255  migrants  returned  from  Croatia 
under the bilateral readmission agreement (2 458 in 2023). Violent collective expulsion (pushbacks) of 
migrants and asylum seekers back into Bosnia and Herzegovina continued to be reported. The country 
also  takes  part  in  the  Global  Alliance  to  Counter  Migrant  Smuggling,  and  is  invited  to  renew  its 
engagement at the occasion of the Global Alliance’s second conference scheduled to take place at the 
end of 2025.  

Asylum  

The legal framework on asylum is broadly aligned with the EU acquis, and the management of asylum 
procedures needs to be improved. 

Legal alignment, strategic and institutional frameworks 

Bosnia  and  Herzegovina  needs  to  guarantee  access  to  quality  and  effective  asylum  procedures. 
Cooperation  with  the  EUAA  is  satisfactory,  and  the  country  signed  a  new  roadmap  on  asylum  in 
March 2025. In April 2025, an assistant minister was appointed in charge of the Asylum Sector of the 
Ministry of Security; however, the Asylum Sector remains understaffed. 

Implementation and enforcement capacity 

In 2024, 21 489 people expressed their intention to seek asylum in Bosnia and Herzegovina (compared 
with 27 915 in 2023), out of which 234 people submitted an application. Asylum applications in 2024 
increased  by  59%  compared  with 
2023  while  remaining  very  low  (1%) 
compared  to  the  number  of  people 
who  expressed  an  intention  to  apply 
for asylum.  

The  average  processing 
time  for 
asylum  requests  slightly  increased  to 
225 days, compared with 211 days in 
2023.  There  is  an  overreliance  on 
subsidiary  protection.  Out  of  234 
two 
applications 
persons received refugee status and 97 
persons 
subsidiary 
protection.  

in  2024, 

received 

lodged 

Practical  obstacles remain  to  accessing the  asylum  procedure.  One  of  these  obstacles  is  that  asylum 
seekers  cannot  register  their  claims  at  their  own  initiative,  despite  this  being  provided  for  by  law. 
Further alignment is needed on strengthening the asylum and reception systems, particularly to ensure 
standardised  examination  of  applications  for  international  protection  and  systematic  access  to 
procedural  guarantees.  Unaccompanied  migrant  children  face  specific  challenges,  such  as  accessing 

47 

 
 
safe accommodation and asylum procedures.  

from 

In  2024,  a  total  of  275  Ukrainian  refugees  resided  in  Bosnia  and  Herzegovina  (2 013  in  2023), 
benefiting 
temporary 
humanitarian  grounds 
months.  

renewable 
on 
six 

residence 

for 

The  country  should  make 
fingerprint 
with EURODAC standards.  

its 
systems  compatible 

No  cases  of  refoulement  were 
reported  in  the  reporting  period. 
The  budget  for  the  integration  of 
refugees  is  sufficient.  The  Delijaš 
asylum  centre  has  good  reception 
conditions  but 
is  underutilised 
(only 20 residents in 2024), in part 
due to its remote location.  

In  2024,  1 420  asylum  applicants  from  Bosnia  and  Herzegovina  were  registered  in  the  EU-27  
(-11.5% compared with 1 605 in 2023). 

Visa policy  

The  country’s  visa  policy  continues  not  to  be  fully  aligned  with  that  of  the  EU.  Bosnia  and 
Herzegovina needs to terminate visa-free regimes with Azerbaijan, Qatar, Kuwait, Türkiye, Russia and 
China, as well as with Vanuatu, which was removed from the EU’s visa-free list in December 2024. 
The country has seasonal visa-exemption measures for nationals of Saudi Arabia, Bahrain and Oman 
which are not in line with the EU acquis and should be removed. 

Pending  full alignment,  Bosnia and  Herzegovina  should  apply additional  security  measures, such  as 
increasing the capacity of border guards and engaging with non-EU countries and airlines. Procedures 
for applying for and issuing visas are harmonised with the EU acquis. The rulebook on the registration 
of biometric features of foreigners was adopted in July 2025. The country should start using external 
service providers and commercial intermediaries. Bosnia and Herzegovina still does not have a fully 
functional central visa information system.  

The country needs to introduce additional checks on the procurement and manufacturing of biometric 
travel  documents.  Security  features  and  procedures  for  applying  for  and  issuing  travel  documents, 
notably biometric passports, are fully aligned with EU standards. 

Schengen governance and external borders  

The  legislative  and  strategic  framework  for  the  management  of  external  borders  is  partially  aligned 
with the EU acquis, and the management of borders needs to be improved. 

Legal alignment, strategic and institutional frameworks 

In  January  2025,  Bosnia  and  Herzegovina  adopted  a  Law  on  border  control  aiming  to  align  its 
legislation  with  the  EU  acquis.  The  law  enables  to  introduce  the  advanced  passenger  information 
(API)  system,  which  should  be  set  up  without  delay.  The  country  needs  to  adopt  legislation  to 
introduce the passenger name record (PNR) system. In July 2025 the Council of Ministers adopted the 
2025-2029 strategy and action plan for integrated border management.  

In June 2025, Bosnia and Herzegovina signed the Frontex status agreement with the EU. Upon request 
of Bosnia and Herzegovina, Frontex will be able to deploy border management teams with executive 
powers. As of September 2025, there were nine Frontex-deployed officers, with further deployments 
pending  the  conclusion  of  the  necessary  operational  plan  between  Frontex  and  the  Border  Police. 
Negotiations for an updated working arrangement with Frontex are ongoing.  

48 

 
 
The  joint  risk  analysis  centre  improved  its  working  methods  and  continued  to  make  progress  in 
exchanging  police  data  with  neighbouring  countries  and  Member  States.  Bosnia  and  Herzegovina 
needs to establish a national coordination centre in line with the Frontex Regulation. 

Implementation and enforcement capacity 

The  Border  Police remains  understaffed,  with a  quarter  of  vacancies still not  filled.  Between March 
and  July  2025,  the  then  political  leaders  of  the  Republika  Srpska  entity  continued  to  travel  abroad 
despite countrywide arrest warrants, which raises questions of effectiveness and accountability of the 
Border Police.  

Inter-agency  cooperation  on  fighting  irregular  migration  continued,  with  support  for  border 
surveillance operations. Joint preventive operations against trafficking in human beings and smuggling 
in  temporary  reception  centres  led  to  increased  detection  of  smuggling  cases,  but  the  central 
investigation  office  within  the  border  police  still  lacks  staff.  The  prosecutorial  response  to  migrant 
smuggling improved, with final convictions increasing by over four times. Border Police cooperation 
with  neighbouring  countries  continued,  with  joint  operations  taking  place.  Border  infrastructure  and 
equipment are yet to be improved. Bosnia and Herzegovina needs to eliminate illegal border crossings, 
particularly  on  the  border  with  Montenegro.  The  Border  Police  has  an  anti-corruption  plan  in  place 
and officers attend regular training. 

Counterfeiting of the euro (criminal law aspect) 

Bosnia and Herzegovina’s legislation on the suppression of counterfeit currency is not aligned with the 
EU acquis. The four criminal codes in force across the country are not in line with the EU acquis on 
protection  against  counterfeiting.  Law  enforcement  and  judicial  authorities  are  in  place  to  deal  with 
counterfeit currency.  

49 

 
 
2.3. ECONOMIC CRITERIA  

2.3.1. The existence of a functioning market economy 

Economic governance  

Economic  governance  deteriorated  in  2024  due  to  resurfacing  political  tensions.  Policy 
formulation  and  implementation  continued  to  be  impeded  by  highly  politicised  decision-making 
processes,  institutional  fragmentation  and  insufficient  cooperation  among  key  stakeholders,  in 
particular from the Republika Srpska entity. The notorious delays in agreeing on the budget for State-
level institutions continues to impede their functioning and to erode their capacities. The quality and 
credibility  of  fiscal  policy  has  further  deteriorated  in  2024,  mainly  due  to  its  focus  on  short-term 
objectives, such as raising social transfers and wages well beyond productivity increases. Longer-term 
challenges (such as stemming brain drain and increasing the country’s growth potential), or upcoming 
economic  issues,  such  as  the  impact  of  the  introduction  of  the  EU’s  carbon  border  adjustment 
mechanism  (CBAM),  are  not  adequately  addressed.  Progress  on  overdue  structural  reforms  has 
remained  very  limited.  The  Economic  Reform  Programme  (ERP)  was  again  submitted  with  a 
significant delay in 2024, for the fourth time in a row. The programme’s quality continues to suffer 
from a lack of both internal consistency and cooperation between the various stakeholders.  

Implementation of the policy guidance jointly adopted at the May 2024 Economic and Financial 
Dialogue with the EU has remained limited. Limited progress has been made since then to improve 
the  country’s  statistics,  especially  in  the  area  of  public  finance.  The  2025-2027  global  fiscal 
framework was not adopted in time, and no steps were taken to clarify the constitutional competence 
for  setting  up  a  central  (countrywide)  registry  of  bank  accounts  of  private  individuals.  The  bank 

50 

Table 19:202220232024Bosnia and Herzegovina - Key economic figuresGDP per capita (% of EU-27 in PPS)1)32343635real GDP growth 2)2.96.24.12.6Activity rate of the population aged 15-64 (%), total56.059.159.861.8      female43.946.347.049.3      male67.871.872.374.0Unemployment rate of the population aged 15-64 (%), total19.315.513.312.8      female22.719.916.716.7      male17.212.710.910.2Employment of total population (annual growth %)3)*2.42.31.40.5Nominal wages (annual growth %)3.011.713.09.8Consumer price index (annual growth %)0.514.06.11.7Exchange rate against EUR1.961.961.961.96Current account balance (% of GDP) 2)-3.1-4.3-2.2-3.9Net foreign direct investment, FDI (% of GDP) 2)2.23.13.33.4General government balance (% of GDP)0.3-0.4-1.2 -1.9 3)General government debt (% of GDP)35.029.326.427.4Notes: 1) Eurostat2) Expenditure side GDP, Agency for statistics data revision 30 Sept.20253) Agency for statistics, Central Bank of Bosnia and HerzegovinaSources: Agency for statistics, Central Bank of Bosnia and Herzegovina and Eurostat2016-21 average* There is no comparable time series for the age group 15-64 
 
 
resolution framework is not fully operational. The Central Bank continued to ensure full convertibility 
of the domestic currency, while its governing board is complete and functioning.  

Macroeconomic stability  

Economic  activity  was  resilient  in  2024  but  weakened  in  early  2025.10  Real  GDP  growth 
decelerated  from  4.1%  in  2023  to  2.6%  in  2024.  This  was  largely  driven  by  weaker  exports,  while 
import  growth  held  up, 
reflecting 
stronger  domestic  demand.  In  the  first 
half  of  2025,  output  growth  slowed 
down  to  about  1.7%,  driven  mainly  by 
weakening  domestic  demand.  The 
process  of  catching  up  with  EU  living 
standards has remained slow, with GDP 
per capita in purchasing power standards 
at  35%  of  the  EU  average  in  2024,  one 
percentage point (pp) lower than in 2023 
and only 3 pps higher than in 2019. 

A  weak  export  performance  during 
the  reporting  period  led  to  a  marked 
deterioration  of  the  current  account 
deficit. Deficit increased from 2.2% of GDP in 2023 to 3.9% in 2024, mainly due to a reduction in 
goods exports (which fell by 1.5% of GDP) and an increase in imports (which rose by 0.9 % of GDP), 
leading to an increase in the goods trade deficit from 19.7% of GDP in 2023 to 21.3% in 2024. The 
weak  export  performance  was  broad-
based,  but  in  particular  affected  mineral 
products,  base  metals  and  footwear, 
while  exports  of  military  materials  and 
transport 
performed 
vehicles 
significantly  better.  The  services  trade 
surplus  stood  at  around  8%  of  GDP  in 
2024,  benefitting  from  strong  tourism 
revenues.  The  surplus  in  the  secondary 
income  balance,  primarily  consisting  of 
remittances, increased slightly from 9.6% 
of  GDP  in  2023  to  9.8%  in  2024.  Net 
foreign  direct  investment  (FDI)  inflows 
rose slightly from 3.3% of GDP in 2023 
to  3.4%  in  2024,  financing  the  bulk  of 

the external deficit. About 40% of those inflows were reinvested earnings. 

Headline inflation picked up from 1.7% in 2024 to 3.8% on average in the first seven months of 
2025. The main drivers for this recent increase were strong price increases for food (+8.8%), health 
and restaurants (+6.5% each). The measurement of inflation suffers due to the lack of disaggregated 
data from the Republika Srpska entity. The country’s statistics office does not yet publish data on core 
inflation,  while  the  Central  Bank  has  started  to  publish  its  own  estimates.  These  methodological 
shortcomings greatly impede the analysis of inflationary dynamics.    

A strong rise in public spending led to an increase in the fiscal deficit from 1.2% of GDP in 2023 
to 1.9% in 2024, despite strong economic growth and significantly higher revenues. Higher than 
expected  revenues  were  largely  used  to  finance  additional  spending,  primarily  for  higher  wages, 
pensions and increased social transfers. The main reasons behind the improved revenue performance 

10  GDP  growth  figures  in  this  paragraph  reflect  the  data  released  on  30  September  2025  by  the  Agency  for 
Statistics of Bosnia and Herzegovina (BHAS). 

51 

 
 
 
were:  (i)  indirect  tax  revenues  being  boosted  by  strong  household  consumption;  and  (ii)  higher 
revenues  from  social  contributions  due  to  higher  wages.  On  the  spending  side,  social  transfers  and 
collective consumption rose by 0.7% of GDP from 32.9% of GDP in 2023 to 35.2% of GDP in 2024. 
Public investment rose slightly from 3.5% of GDP in 2023 to 3.9% in 2024. General government debt 
rose from 26.4% of GDP at end-2023 to 27.4% at end-2024. The recent increases in current spending 
in response to a temporary inflation-driven revenue increase have structurally weakened the country’s 
fiscal position. Adopted budgets for 2025 suggest a further increase in the fiscal deficit towards 2.5% 
of  GDP.  Overall,  any  assessment  of  the  country’s  budgetary  position  and  public  debt  is  severely 
constrained by: (i) a lack of timely, countrywide fiscal data; (ii) weak compliance with EU accounting 
standards; and (iii) a significant level of payment arrears and contingent liabilities.  

The macroeconomic policy mix has deteriorated and does not adequately address the country’s 
main challenges. Bosnia and Herzegovina’s currency board regime, which is an anchor of stability, 
limits the country’s room for monetary policy. For this reason, fiscal policy is the key macroeconomic 
policy tool to manage aggregate demand. However, there is de facto no countrywide fiscal planning or 
ex  ante  coordination  of  fiscal  planning  between  the  State  and  the  entities,  as  existing  legislation 
requiring  this is  not  being complied  with.  In  June  2025,  the  Federation entity adopted legislation  to 
issue Eurobonds without State-level approval and to increase borrowing limits from local banks. In the 
Republika  Srpska  entity  a  similar  practice  is  already  in  place.  This  further  impedes  the  country’s 
ability to pursue a coordinated, countrywide fiscal policy. The country’s fiscal stance and its structural 
fiscal  position  have  worsened  in  2024  and  2025  with  procyclical  spending  increases  in  2024  and 
further spending increases in 2025, largely consisting of additional expenditure on consumption and 
transfers. At  the  same time,  public  investment remains  low,  failing to  increase  the  country’s  growth 
potential.  This  short-term-oriented  fiscal  stance  fails  to  address  the  country’s  structural  challenges, 
such as: (i) the overall low speed of convergence with the EU; (ii) a poor business environment; (iii) 
insufficient  domestic  and  foreign  investment;  and  (iv)  significant  labour  market  issues  due  to  skill 
mismatches and a persistent and substantial brain drain.  

Functioning of product markets  

Business environment  

The institutional and regulatory business environment has further weakened. Although property 
rights are largely well established, implementing these rights remains cumbersome in some areas, such 
as in real estate registration. The backlog in civil and  commercial litigious cases at first instance has 
increased  slightly  (by  about  1%)  in  2024.  The  long  duration  of  court  cases  impedes  contract 
enforcement,  in  particular  for  the  settling  of  commercial  disputes.  Doing  business  across  the  entire 
country  continues  to  be  impeded  by  technical  and  administrative  obstacles,  such  as:  (i)  the  need  to 
obtain the same licences or permits in each entity or local government area; (ii) locally diverging rules 
and standards such as for construction permits; or (iii) the need to pay a range of some 3 500 different 
local  taxes  and  fees.  This  prevents  competition  and  deters  both  domestic  and  foreign  investors.  Not 
surprisingly, the number of foreign ‘green field’ investors and the growth of medium-sized companies 
has remained very limited. The economic and social dialogue between the authorities, social partners 
and academia further declined during the reporting period. This has a negative impact on the quality of 
adopted  legislation,  as  in  the  case  of  the  poorly  prepared  increase  of  the  minimum  wage  in  both 
entities.  

The  informal  economy  and  the  level  of  corruption  remain  sizeable.  Despite  some  efforts  to 
increase employment registration, the informal sector continues to be large, accounting for up to one 
third of GDP. Undeclared work provides substantial employment and income but distorts competition 
and  erodes  the tax base.  Together  with  under-reported  wages,  this  results in lower  pension  benefits, 
increases  the  risk  of  poverty  for  older  people,  and  adds  to  an  already  significant  fiscal  burden  on 
registered labour. Transparency International’s country-corruption index for 2024 shows a drop by 2 
points compared with 2023 and a further fall in the country’s ranking by six places, to 114th out of 180, 
indicating an increase in perceived corruption.  

State influence on product markets  

52 

 
 
State  influence  in  the  economy  remains  large.  About  one  third  of  total  employment  is  in  public 
administration,  health,  education  and  publicly  owned  enterprises.  Many  of  these  public  enterprises 
remain unreformed despite ongoing poor performance. Public procurement procedures continue to be 
complex,  and  administrative  capacities  remain  low.  This  facilitates  corruption  and  leads  to  a 
preference  for  domestic  suppliers,  which  is  incompatible  with  the  EU  acquis  (see  also  Chapter  5  – 
public procurement). There is still a wide range of regulated prices in the economy. The official level 
of  State  aid  is  relatively  low  (at  1.1%  of  GDP  in  2022),  although  significant  indirect  State  support 
continues to undermine the level playing field. Monitoring and control of State aid is still hindered by 
both  (i)  the  only  partial  legal  alignment  with  the  EU  State  aid  framework;  and  (ii)  the  lack  of 
consistent  enforcement  of  State  aid  rules 
throughout  the  country.  The  State  Aid 
Council’s  powers  and  capacities  remain 
limited. 

Privatisation and restructuring  

No  progress  was  achieved  during  the 
reporting period on the restructuring of 
publicly  owned  companies.  Some  540 
companies  are  owned  or  controlled  by 
different levels of government, accounting 
for  about  10%  of  total  employment  and 
about  one  quarter  of  public-sector 
employment.  The  debt  of  those  public  companies  is  substantial,  amounting  to  nearly  30%  of  GDP, 
with a high share of short-term liabilities. Contingent liabilities with a high risk of realisation account 
for about 5% of GDP. Monitoring and management of those debt risks is often insufficient. Close to 
half of those companies require both explicit and implicit budgetary support, which is a heavy burden 
on  the  public  finances.  Although  legislation  partially  provides  for  open  and  transparent  selection 
procedures, in practice appointments to boards of public companies are highly politicised. Some of the 
public enterprises benefit from a less strict collection regime when it comes to paying taxes and social 
contributions,  accumulating  payment  arrears.  This  also  allows  them  to  pay  wage  premiums,  which 
puts  them  in  an  advantageous  position  when  compared  with  private  companies.  Actual  steps  to 
restructure, dissolve or privatise public enterprises remained very limited. However, there have been 
some steps in the Republika Srpska entity towards strengthening the management and oversight of the 
entity’s publicly owned enterprises. Functional mechanisms and capacities for effective oversight and 
governance  of  public  enterprises  are  still  lacking.  While  the  Republika  Srpska  entity  has  started 
publishing  a  consolidated  report  on  the  financial  performance  of  publicly  owned  enterprises,  a 
countrywide  report  is  still  missing.  This  represents  a  significant  gap  in  transparency  and 
accountability. The Republika Srpska entity still lacks an updated single register of public companies, 
and the Federation entity has not yet put in place units to oversee and manage public companies.  

Functioning of the financial market  

The  financial  sector  remained  stable  and  asset-quality  indicators  remained  solid  during  the 
reporting  period,  although  some  weaknesses  remain.  Banks  have  robust  capital  and  liquidity 
buffers, while bank profitability remained solid in the reporting period. Bank deposits grew robustly 
(by 7.6% in 2024 and 7.8% in the first seven months of 2025) while nominal credit growth accelerated 
to  9.0% in  2024,  and  10%  in the first  seven months of  2025.  Bank lending  as a  share  of  GDP  rose 
from  46.2%  in  2023  to  48%  in  2024.  The  ratio  of  non-performing loans  continued  to  decline,  from 
3.5%  in  the  second  quarter  of  2024  to  2.9%  in  the  second  quarter  of  2025.  However,  credit  risks 
appear markedly higher in some smaller, domestically owned banks. During the reporting period, the 
entity-level  banking  supervisory  authorities  extended  measures  to  contain  the  increase  in  domestic 
lending  rates.  They  did  this  to  preserve  households’  repayment  capacity  and  discourage  higher-risk 
lending. A comprehensive assessment of financial-sector risks is hampered by both: (i) gaps in data 
availability, particularly in the real-estate sector and on private debt; and (ii) the overall fragmentation 
of  the  domestic  financial  market.  Bosnia  and  Herzegovina  does  not  have  a  countrywide  financial 

53 

 
 
safety net, such as a single resolution framework. The size of the non-bank financing sector and of the 
capital markets remained small, with a stock market capitalisation of about 22.5% of GDP at the end 
of 2024. For many micro and small companies, gaining access to credit remained difficult.  

Functioning of the labour market  

Recent labour market improvements have slowed down, but high levels of youth and long-term 
unemployment, low labour participation, and labour shortages all point to persistent structural 
weaknesses. Registered employment growth slowed down to 0.1% in the first seven months of 2025, 
compared  to  0.4%  the  year  before.  There  were  job  losses  in  manufacturing,  while  the  construction, 
trade,  tourism  and  health  sectors  registered  moderate  employment  growth.  The  unemployment  rate 
according to the labour force survey rose from 12.7% on average in 2024 to 13.3% in the first half of 
2025. Youth unemployment (those aged 15-24) rose from an average of 29.9% in 2024 to 34.6% in the 
first  half  of  2024.  Plans to  establish  the  EU  Youth  Guarantee  scheme  have  been  further  delayed.  A 
relatively  high  inactivity  rate  among  women  contributes  to  an  overall  rather  low  activity  rate.  The 
level  of  informal  employment  remains  high.  Significant  numbers  of  workers  continued  to  leave  the 
country during the reporting period, leading to labour shortages and damaging the country’s medium-
term  growth  potential.  In  response,  the  authorities  have  increased  available  quotas  for  foreign 
employment permits. Long-term unemployment as a share of total unemployment slightly declined but 
was  still  a  very  high  73.2%  in  2024.  The  key  causes  of  this  are  skills  mismatches,  insufficient  job 
opportunities and a high tax wedge on labour. The impact on the labour market of the recent reduction 
of the  tax  wedge might  be  observable  only at  a later  stage.  Measures  to  address  the  high  youth and 
structural unemployment and skill mismatches have remained limited and fragmented at cantonal and 
entity  level.  Official  real  wages  grew  by  8.1%  in  2024  and  some  10%  in  the  first  seven  months  of 
2025, while labour productivity growth during this period was significantly lower, at around 2-2.5% 
annually.  Such  above-productivity  wage  increases  could  fuel  inflationary  pressures  and  hamper  the 
country’s external competitiveness.  

2.3.2. The capacity to cope with competitive pressure and market forces within the EU 

Education and innovation  

Measures  to  develop  the  country’s  human  capital  have  remained  insufficient.  Despite  a  large 
number  of  local-level  education  and  research  strategies,  efforts  to  coordinate  these  activities  in  a 
highly  fragmented  institutional  set-up  have  remained  limited.  As  a  result,  despite  sizeable  public 
spending  on  education  (some  4%  of  GDP),  the  education  system  does  not  sufficiently  provide  the 
workforce  with  the  required  skills  and  knowledge,  in  particular  in  view  of  the  upcoming  green  and 
digital transitions. The insufficient coordination among the many stakeholders in the education sector 
leads  to  both  a  lack  of  common  standards  in  education  and  differences  in  the  quality  of  teachers’ 
training  and  performance  evaluation,  both  of  which  impede  labour  mobility.  In  2020,  the  country 
stopped  participating  in  the  Programme  for  International  Student  Assessment  (PISA)  evaluation, 
abandoning an important source of information for education policy. Some measures have been taken 
at local level to modernise education curricula and increase available funds. In a positive development, 
Bosnia  and  Herzegovina  joined  the  European  Alliance  for  Apprenticeships  (EafA) in  October  2024, 
showing  its  commitment  to  improve  its  systems  for  vocational  education  and  training  and  to  take 
measures to increase youth employment. Investment in research and development has remained low, 
while the lack of coordination in this area results in overall poor spending efficiency. No progress was 
made during the reporting period in improving the functioning of science and technology parks.  

Physical capital and the quality of infrastructure  

Bosnia and Herzegovina’s fixed capital endowment continues to remain insufficient for reaching 
a  higher  growth  potential.  Ongoing  political  deadlock  and  uncertainties,  along  with  inadequate 
progress in improving public investment management procedures, have negatively affected public and 
private investment. This has prevented the country from reaching a higher growth trajectory. Net FDI 
inflows continue to remain significantly lower than in other countries of the region, at 3.4% of GDP in 
2024  and  3.3%  in  the  first  quarter  of  2025.  Some  progress  has  been  made  –  largely  with  foreign 
financing  –  in  improving  road  infrastructure,  and  there  are  local  initiatives  aimed  at  attracting 

54 

 
 
investment. The energy sector relies heavily on lignite coal with a high level of CO2 emissions per unit 
of  energy  production.  Efforts  to  improve  the  energy  mix  by  allowing  solar-generated  electricity  to 
access  the  country’s  energy  grid  are  insufficient.  The  absence  of  a  unified  regulatory  framework 
hampers  investments  in  renewable  energy  sources.  While  the  country  has  begun  drafting  a  national 
energy and climate plan (NECP), this has yet to be adopted. Environmental standards remain low and 
are frequently neglected. This is detrimental to the health (and thus productivity) of the labour force.  

The  degree  of  digitalisation  of  government  services  remains  relatively  low.  Insufficient 
coordination,  cooperation  and  data  exchange  between  administrations  slow  down  progress.  An 
important example in this respect is the failure to agree on a countrywide harmonisation of e-signature 
systems.  Furthermore,  appropriate  legislation  and  countrywide  institutions  in  line  with  European 
standards are missing.  

Sectoral and enterprise structure 

Bosnia and Herzegovina’s production structure is gradually shifting towards services. The share 
of  production-oriented  sectors  (manufacturing,  electricity  production,  water  management)  in  total 
value added declined between 2019 and 2024 (from 35.2% of gross value added to 30.3%) while the 
share of trade and tourism, IT and administrative services increased (from 33.1% of gross value added 
to 37.2%). The number of registered active companies has increased in recent years. However, this has 
mostly  been  driven  by  micro  companies  (0-9  employees)  in  the  trade  sector.  Some  90%  of  all 
companies are small and micro businesses (i.e. with less than 50 employees).  

Economic integration with the EU and price competitiveness  

Trade  and  investment  integration  with  the  EU  remained  high,  despite  weak  demand  in  2024 
from key EU trading partners. In 2024 and the first half of 2025, Bosnia and Herzegovina’s external 
trade experienced a slight diversification away from the EU, mainly due to weaker exports to key EU 
trading  partners,  such  as  Germany  and  Italy  and  stronger  trade  with  non-EU  neighbours  such  as 
Serbia. As a result, the share of trade with the EU remained at some 73% of total trade, while trade 
with the CEFTA countries rose from 15.9% in the first 7 months of 2024 to 16.9% in January–July 
2025. Bosnia and Herzegovina’s openness to trade (exports and imports as a percentage of GDP) stood 
at 97.4% of GDP in 2024, largely back to its pre-COVID-19 level. This remains relatively low given 
the small size of its economy. The composition of the country’s exports is not very diversified, relying 
strongly  on  basic  metals,  machinery  and  chemical  products.  About  two  thirds  of  the  FDI  stock 
originates from EU countries. 

Domestic  wage  pressures  affect  the  country’s  external  competitiveness.  Significant  increases  of 
nominal wages in 2023 and 2024 risk to negatively affect the country’s export industries. The nominal 
effective exchange rate of the domestic currency appreciated in 2024 due to its peg to the euro, which 
appreciated against the currency of key third-country trading partners, in particular the Turkish Lira. 
However, when using the consumer price inflation (CPI) as a deflator, Bosnia and Herzegovina’s real 
effective exchange rate depreciated in 2024 as a consequence of higher average inflation rates in key 
export  destinations,  such  as  Türkiye,  Serbia  and  Croatia.  In  the  first  half  of  2025,  both  indicators 
appreciated, again mainly due to the appreciation of the EUR exchange rate against the country’s main 
trading partners. 

55 

 
 
2.4. PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL 

Chapter 5: Public procurement 

EU  rules  ensure  that  public  procurement  of  goods,  services  and  works  in  any  Member  State  is 
transparent and open to all EU companies on the basis of non-discrimination and equal treatment. 

Institutional set-up and legal alignment 

The  legal  framework  is  partially  in  line  with  the  EU  acquis.  The  public  procurement  strategy  for 
2024-2028 and its action plan are being implemented with the aim to draft a new public procurement 
law.  

The legal framework for concessions and public-private partnerships (PPPs) remains fragmented and 
not aligned with basic EU principles, lacking strategic planning and efficient review mechanisms. The 
competent  institutions  at  State  and  entity  level  should  jointly  develop  a  roadmap  to  harmonise  the 
legal  framework  with  the  EU  acquis  including  measures  for  improved  coordination  and  consistent 
application throughout Bosnia and Herzegovina. 

Implementation of the Law on public procurement lagged behind. Further alignment is necessary with 
EU  procurement  practices,  procedures  and  concepts,  including  innovation  partnership,  dynamic 
purchasing  system,  electronic  catalogues,  best  price-quality  ratio  and  life-cycle  costing.  Further 
reforms  are  needed  to  fully  integrate  electronic  communication  and  information  exchange  into  the 
procurement process to enhance efficiency and reduce bureaucracy. Despite improvements, the system 
still lacks user-friendly features or full e-communication functionalities to achieve its full impact.  In 
2024,  the  activities  under  the  action  plan  accompanying  the  public  procurement  strategy  were 
successfully implemented.  

Implementation and enforcement capacity 

The  share  of  public  procurement  market  in  the  total  nominal  GDP  for  2024  is  9.8%,  down  from 
10.3% in 2023. The average number of bids per tender remains low at 1.75 in 2024. 

In  monitoring  the  award  and  implementation  of  contracts,  the  administrative  capacities  of  the 
Public Procurement Agency (PPA) is insufficient to fulfil its tasks. Its role should be strengthened to 
identify  potential  weaknesses  and  irregularities  in  procurement  procedures.  Better  coordination  is 
needed  with  the  Competition  Council  and  with  the  audit  and  judiciary  institutions.  The  use  of  the 
negotiated  procedure  without  prior  publication  of  all  awarded  contracts  decreased  slightly  (5.1%  in 
2024 compared with 6.1% in 2023). Over half of tenders received only one bid, and 75.2% of public 
contracts  used  price  as  the  only  award  criterion.  There  is  no  mechanism  to  coordinate  the 
interpretation of public procurement legislation between the key institutions. 

The capacity to manage public procurement processes is weak. Specialised procurement functions 
need to be established in each contracting authority. More efforts are needed to improve integrity and 
avoid conflicts of interest in public procurement, which remains prone to irregularities and vulnerable 
to  corruption.  The  Public  Procurement  Agency  organised  specialised  training  for  most  contracting 
authorities and strengthened its cooperation with prosecutors and civil society to monitor violations of 
procurement rules. Cooperation with the courts and with civil society needs to be strengthened.  

Efficient remedy system 

The legislation on the right to legal remedy is partially in line with the EU acquis. The Procurement 
Review Body (PRB) faces insufficient technical capacity and a high volume of appeals (3 072 in 2024, 
4 038  in  2023),  compounded  by  challenges  with case  law  accessibility,  prolonged  appeals  and  legal 
loopholes  disrupting  procurement  processes.  Improved  search  function  for  decisions  of  the 
Procurement  Review  Body  and  judgments  of  the  Court  of  Bosnia  and  Herzegovina  have  been 
available since June 2025 in line with SIGMA recommendations.  

56 

 
 
Chapter 18: Statistics 

European statistics are developed, produced and disseminated by EU Member States, guided by the 
principles  and  quality  criteria  laid  down  in  the  Regulation  on  European  statistics,  such  as 
professional  independence,  impartiality,  reliability,  accessibility  and  statistical  confidentiality. 
Common  rules  are  provided  for  the  methodology,  production  and  dissemination  of  statistical 
information,  which  are  further  specified  in  sectoral  legislation  that  constitute  the  EU  acquis  on 
statistics. 

As  regards  statistical  infrastructure,  the  Law  on  statistics  still  needs  to  be  aligned  with  European 
standards  and  integrate  the  principles  of  the  European  statistics  code  of  practice.  The  Agency  for 
Statistics of Bosnia and Herzegovina (BHAS) needs to strengthen its coordination role towards other 
domestic authorities producing official statistics.  

On  classifications  and  registers,  the  statistical  business  register  is  in  place,  but  data  received  from 
administrative sources remains insufficient. The main statistical classifications are in place. However, 
the  equivalent  to  NUTS  II  regions  has  only  been  provisionally  defined  and  is  accepted  by  the 
European Commission until Bosnia and Herzegovina finalises the entire classification and includes in 
it also the definition of the equivalent to the NUTS III level. 

On  macroeconomic  statistics,  national  accounts  are  not  aligned  with  the  EU  acquis,  and  a  master 
plan  to  align  national  accounts  needs  to  be  agreed  among  the  three  statistical  institutes  at  State  and 
entity level. Furthermore, Bosnia and Herzegovina needs to provide the Commission with its GDP per 
capita figures, harmonised at NUTS II level. The sector classification is complete except for the sub-
sectors of the general government sector.  

As  regards  government  finance  statistics  and  excessive  deficit  procedure  (EDP)  tables,  Bosnia  and 
Herzegovina  should  improve  sector  coverage,  timeliness  and  coverage  of  transactions,  in  line  with 
ESA 2010, and resume regular submission of government finance statistics (GFS) and EDP tables to 
Eurostat. The series of GDP data at State and entity level must be methodologically harmonised. The 
country does not send harmonised indices of consumer prices data to Eurostat.  

On  business  statistics,  short-term  statistics  for  industry,  construction  and  services  need  to  be 
established  in  line  with  the  EU  acquis.  Regarding  statistics  on  international  trade  in  services,  the 
amount of publishable data was increased but more timely and consistent datasets need to be produced 
and submitted. Foreign affiliates statistics still need to be aligned with the EU  acquis. The results of 
the structure of earnings survey (SES), conducted for the first time, were published in December 2024.  

On  science,  technology  and  innovation  statistics,  a  web  questionnaire  was  developed  by  the 
statistical offices to collect information about the use of ICT by companies. It was used in February 
2025 with the aim of improving the data collection process. A two-year survey on innovation activities 
of enterprises 2022-2024 is being carried out.  

On  social  statistics,  a  full-scale  survey  of  income  and  living  conditions  is  conducted  annually,  but 
further efforts are needed to align data quality with the EU acquis. A labour force survey is conducted 
regularly. On public health statistics, fully compliant healthcare expenditure data were transmitted to 
Eurostat. The three statistical institutes need to improve the collection of sex-disaggregated data and 
statistics, including data about persons with disabilities and their labour market participation, as well 
as  about  occupational  accidents  and  occupational  diseases.  All  three  statistical  institutes  developed 
their demographic resilience portal. 

On agricultural statistics, preparations are ongoing for the agricultural census, which is now planned 
to  take  place  from  October  to  December  2026.  On  population  and  housing  census,  Bosnia  and 
Herzegovina  should  finalise  and  adopt  the  Law  on  census  of  population,  households  and  dwellings, 
adopt the roadmap and carry out the census. 

Regarding environmental statistics, available data for the economic account environmental tax were 
sent  to  Eurostat  for  the  period  2017-2024.  For  the  first  time,  BHAS  published  the  statement  on 
environmental taxes by economic activities. On energy statistics, further work is needed to improve 

57 

 
 
the quality of data in line with the EU  acquis. BHAS has continued to improve  transport statistics 
and continued cooperation with the Directorate of Civil Aviation.  

Chapter 32: Financial control 

The  EU  promotes the  reform  of  national governance  systems  to  improve  managerial accountability, 
sound  financial  management  of  income  and  expenditure,  and  external  audit  of  public  funds.  The 
financial  control  rules  protect  the  EU’s  financial  interests  against  fraud  in  the  management  of  EU 
funds and protect the euro against counterfeiting. 

Public internal financial control 

The  implementation  of  the  strategic  and  legislative  frameworks  across  all  levels  of  government 
remains inconsistent. The strategic framework, laid out in PIFC strategies 2020-2025, continued to be 
implemented  in  a  harmonised  way  by  the  PIFC  coordination  board,  composed  of  central 
harmonisation  units (CHUs)  located  in  the  ministries  of  finance  at  State,  entities  and  Brčko  District 
level. Annual PIFC reports for 2024 were adopted at State and entity level.  

Managerial accountability guidelines are in place for State institutions and the Federation entity, and 
remain to be developed in the Republika Srpska entity. Delegation of authority remains limited to the 
political level and not to senior civil servants. Fragmented, complex and unaccountable administrative 
structures  and  the  lack  of  clear  lines  of  accountability  hinder  the  development  of  public  internal 
financial control.  

The  legal  framework  for  the  functioning  of  internal  control  is  largely  in  place  at  all  levels  of 
government, but implementation lags behind. Lack of reporting on fiscal risks of public companies in 
the  annual  PIFC  reports  and  ineffective  fiscal  oversight  function  undermine  internal  control. 
Management  and  control  systems  remain  inadequate  and  inconsistent,  posing  significant  challenges 
for risks, irregularities and fraud. 

consistency, 

staffing,  comprehensive  planning,  and 

Internal audit practice is in line with international standards. Challenges persist in quality assurance, 
methodological 
audit 
recommendations. Internal audit remains absent in the Brčko District. Additionally, the lack of quality 
assurance frameworks aligned with the international professional practices framework (IPPF) remains 
a significant weakness, undermining the credibility and effectiveness of internal audits. The capacities 
of  central  harmonisation  units  need  to  be  improved  to  support  institutions  in  implementing 
recommendations on public internal financial control. 

implementing 

External audit 

The  functional,  operational  and  financial  independence  of  State  audit  offices  is  set  out  in  the  legal 
framework and is yet to be anchored in the Constitution.f 

The institutional capacity of supreme audit institutions (SAIs) needs to be strengthened at all levels 
of government. Some progress was made in launching a modular and customisable audit management 
system  (AMS)  for  all  four  supreme  audit  institutions,  to  streamline  audit  workflows,  improve 
traceability, and enhance compliance with international standards, with the aim to improve the quality 
of audit work. The impact of the audit work varies: only some 28%-55% of recommendations are 
implemented,  and  numerous  recommendations  are  repeated  year  over  year.  All  supreme  audit 
institutions  have  strengthened  their  impact  by  supervising  the  implementation  of  recommendations, 
conducting  follow-up  audits,  and  publishing  databases  of  recommendations  issued.  However,  the 
inconsistent usage of audit reports by legislative assemblies and low recommendation implementation 
rates remain problematic. The Republika Srpska entity still needs to adopt a communication strategy 
on external audit. 

Protection of the EU’s financial interests 

The legal framework is yet to be aligned with the EU acquis. Bosnia and Herzegovina should set up an 
anti-fraud  coordination  service  (AFCOS)  to  facilitate  effective  cooperation  and  exchange  of 
information with the Commission and its European Anti-Fraud Service (OLAF), as envisaged in the 

58 

 
 
anti-corruption strategy.  

Protection of the euro against counterfeiting  

Bosnia  and  Herzegovina  has  not  ratified  the  1929  Geneva  Convention  for  the  suppression  of 
counterfeiting currency. The legal framework is yet to be assessed against the EU acquis.  

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION  

Good  neighbourly  relations  and  regional  cooperation  form  an  essential  part  of  Bosnia  and 
Herzegovina’s European integration process. They contribute to stability, reconciliation and a climate 
conducive to addressing open bilateral issues and the legacies of the past.  

Bosnia and Herzegovina maintained its involvement in a number of regional cooperation initiatives 
such as the Central European Free Trade Agreement (CEFTA), the Energy Community, the Transport 
Community,  the  South-East  European  Cooperation  Process  (SEECP)  and  the  Regional  Cooperation 
Council,  of  which  it  hosts  the  seat11.  Bosnia  and  Herzegovina  also  chaired  the  EU  Strategy  for  the 
Danube Region and the US-Adriatic Charter (A5) in 2025.  

The fifth annual EU-Western Balkans Summit took place in Brussels in December 2024, reaffirming 
the  EU  membership  perspective  of  the  Western  Balkans  and  exploring  measures  to  further  advance 
gradual  integration.  Bosnia  and  Herzegovina  has  actively  engaged  in  the  regional  dimension  of  the 
Growth Plan for the Western Balkans, participating in both ministerial and leaders’ meetings.  

On the Common Regional Market (CRM), at the Berlin process summit in London in October 2025, 
the  leaders  of  the  region  endorsed  a  revised  and  streamlined  action  plan  to  implement  the  Green 
Agenda  for  the  Western  Balkans,  adopted  a  Western  Balkans  Climate  Adaptation  Roadmap  and 
committed  to  make  progress  in  the  promotion  of  regional  mobility  and  implementation  of  relevant 
regional agreements and CEFTA decisions.  

Bosnia  and  Herzegovina  has  ratified  four  of  the  five  regional  mobility  agreements.  Bosnia  and 
Herzegovina signed in October 2024 and subsequently ratified the fifth mobility agreement on access 
to higher education and admission to studies in the Western Balkans and supported the CRM action 
plan  for  2025-2028.  The  agreement  on  the  recognition  of  professional  qualifications  of  nurses, 
veterinarians, pharmacists and midwives entered into force in December 2024.  The country needs to 
swiftly ratify the mobility agreement on freedom of movement with identity cards.  

The  roadmap  for  roaming  between  the  Western  Balkans  and  the  EU  entered  its  first  phase  of 
implementation  during  the  reporting  period.  Twelve  decisions  were  agreed  by  the  CEFTA  joint 
committee in October 2024 following an agreement between CEFTA members that allowed decision 
making in the organisation to be unblocked.  

Bosnia and  Herzegovina  continued to  cooperate closely  with  Croatia,  Montenegro  and  Serbia  under 
the Sarajevo Declaration Process to find sustainable solutions for refugees and persons displaced by 
the  conflicts  in  the  1990s.  Following  the  closure  of  the  Regional  Housing  Programme,  Bosnia  and 
Herzegovina  made  no  progress  to  complete  the  remaining  housing  units  to  ensure  the  sustainable 
return of up to 3 100 families, despite a commitment to do so.  

Despite progress during the reporting period on the issue of missing persons, 7 575 people are still 
missing as a result of the conflict in the 1990s. 82 missing persons were identified in 2024, and 54 so 
far in 2025. Regional efforts are needed through the missing persons group established in 2018 under 
the Berlin Process.  

11  Bosnia  and  Herzegovina  also  actively  participates  in  initiatives  such  as  the  Brdo-Brijuni  Process;  the  Central  European 
Initiative;  the  Adriatic-Ionian  Initiative;  the  EU  Strategies  for  the  Danube  Region  and  for  the  Adriatic-Ionian  Region;  the 
Migration,  Asylum,  Refugees  Regional  Initiative  (MARRI);  the  Regional  School  of  Public  Administration  (ReSPA);  the 
Regional Youth Cooperation Office in the Western Balkans (RYCO); the South East European Cooperation Process; and the 
Western Balkans Fund. 

59 

 
 
 
 
Bosnia  and  Herzegovina  generally  maintains  good  bilateral  relations  with  other  enlargement 
countries and neighbouring EU Member States.  

Relations  with  Albania  are  good,  with  occasional  high-level  bilateral  visits.  Albania  reopened  its 
embassy in Sarajevo in May 2025.  

There  are  no  official  relations  with  Kosovo*,  as  Bosnia  and  Herzegovina  does  not  recognise  its 
independence.  Kosovo  unilaterally  lifted  its  requirement  for  visas  for  citizens  of  Bosnia  and 
Herzegovina as of January 2025, although Bosnia and Herzegovina maintains a strict visa regime for 
people from Kosovo, and still has to ratify the regional mobility agreement on freedom of movement 
with identity cards. Bilateral meetings and visits took place occasionally during the reporting period. 
Kosovo’s prime minister was received in Sarajevo in December 2024, and Bosnia and Herzegovina’s 
foreign minister visited Pristina in May 2025. 

Relations  with  Montenegro  are  good,  with  occasional  high-level  bilateral  visits.  The  agreed  border 
demarcation is yet to be physically marked and illegal border crossings eliminated. 

Relations  with  North  Macedonia  are  good,  with  occasional  high-level  bilateral  visits.  Bilateral 
agreements in place focus on cooperation on EU integration and on economic cooperation.  

Relations with Serbia are overall good and stable. They continue to be affected by political tensions in 
relation  to  the  2024  ‘all-Serb  assembly’  and  its  declaration  on  ‘the  common  future  of  the  Serbian 
people’.  Every  year,  senior  political  leaders  from  Serbia  also  attend  the  unconstitutional  Republika 
Srpska  entity  celebrations  on  9 January  and  other  entity-level  events.  Milorad  Dodik  continued  to 
receive  political  and  logistical  support  from  Serbia  after  the  arrest  warrant  and  after  the  final 
conviction, which the Serbian President and government refuse to accept. As a signatory to the Dayton 
/  Paris  Peace  Agreement,  Serbia  is  obliged  to  respect  Bosnia  and  Herzegovina’s  sovereignty  and 
territorial integrity. The two countries need to reach an agreement on State borders, including on two 
dams on the Drina river and a part of the Belgrade-Bar railway. 

Türkiye is a strong international supporter of the country and exchanges at high level are frequent.  

Relations with Georgia are good. A visa-free regime is in force. 

Relations with the Republic of Moldova are good, with sporadic bilateral contacts. A visa-free regime 
is in force. Although both countries are part of CEFTA, trade flows remain low.  

Bosnia  and  Herzegovina  supports  the  territorial  integrity  and  sovereignty  of  Ukraine,  condemning 
Russia’s  war  of  aggression.  Bilateral  relations  are  generally  good  but  have  been  affected  by  the 
support for Russia’s war of aggression expressed by the political leadership of the  Republika Srpska 
entity and by the continued non-implementation of restrictive measures against Russia and Belarus by 
ministries  controlled  by  the  SNSD  party.  Bosnia  and  Herzegovina  took  part  in  the  third  South  East 
Europe – Ukraine summit in October 2024 but not in the June 2025 summit.  

Relations with Croatia are good overall, although affected by outstanding bilateral issues. High-level 
bilateral visits took place during the reporting period. The 1999 border agreement has not been ratified 
by either side. Implementation of the 2001 succession agreement has been affected by issues of private 
property and acquired rights. Bosnia and Herzegovina continued to object to Croatia’s plan to build a 
facility for radioactive waste at Trgovska Gora near the border. Some 15 000 citizens of Croatia voted 
from Bosnia and Herzegovina in Croatia’s presidential elections in December 2024 and January 2025. 

 This designation is without prejudice to positions on status and is line with UNSCR 1244/1999 and the ICJ Opinion on the 
Kosovo declaration of independence. 

60 

 
 
 
 
4. 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP  

CLUSTER 2: INTERNAL MARKET 

This  cluster  covers:  the  free  movement  of  goods  (Chapter  1);  freedom  of  movement  for  workers 
(Chapter  2);  right  of  establishment  and  freedom  to  provide  services  (Chapter  3);  free  movement  of 
capital  (Chapter  4);  company  law  (Chapter  6);  intellectual  property  law  (Chapter  7);  competition 
policy (Chapter 8); financial services (Chapter 9), and consumer and health protection (Chapter 28). 

Chapter 1: Free movement of goods 

The free movement of goods ensures that many products can be traded freely across the EU based on 
common  rules  and  procedures. Where  products  are governed  by  national  rules,  the  principle  of  the 
free movement of goods prevents these rules from creating unjustified barriers to trade. 

General principles 

Bosnia  and  Herzegovina  does  not  have  a  coherent  legislative  and  institutional  framework  for  the 
production,  distribution  and  marketing  of  industrial  products.  No  countrywide  approach  or 
strategy exists for alignment with the EU  acquis and conflicting regulations have not been repealed. 
Work is ongoing at technical level to formulate a comprehensive strategy. 

Non-harmonised area 

No steps were taken to align with the obligations of Articles 34-36 of the Treaty on the Functioning of 
the European Union. No specific body is empowered to provide notifications of technical regulations. 

Harmonised area: quality infrastructure 

The  legal  bases  and  administrative  structures  to  ensure  technical  regulations,  standards,  conformity 
assessment, accreditation, metrology and market surveillance are not aligned with the EU  acquis and 
are  fragmented.  There  is  still  no  countrywide  strategy  for  the  quality  infrastructure  in  place  and 
coordination  among  competent  institutions  remains  weak.  The  standardisation,  accreditation,  and 
market surveillance bodies are understaffed. 

In  2024,  the  Institute  for  Standardisation  adopted  1 136  European  standards.  However,  conflicting 
mandatory ex-Yugoslav standards have still not been systematically withdrawn. 

On  accreditation,  the  designation  of  conformity  assessment  bodies  and  conformity  assessment 
procedures are not applied consistently throughout the country. There are 184 conformity assessment 
bodies  in  Bosnia  and  Herzegovina,  comprising  95  testing  laboratories,  3  medical  and  9  calibration 
laboratories, 6 product certification bodies and 71 inspection bodies. 

Rules  on  metrology  are  not  applied  evenly  across  the  country,  undermining  legal  certainty  and  the 
single economic space. The Institute of Metrology needs to cooperate and coordinate its activities with 
the entities’ metrology bodies. In December 2024, the Court of Bosnia and Herzegovina annulled the 
rulebook  on  TV  audience  measurement  (“peoplemetre”).  In  July  2025,  the  Council  of  Ministers 
endorsed  a  draft  law  on  units  of  measurement  aimed  at  aligning  with  the  EU  acquis;  parliamentary 
adoption is pending. 

Market  surveillance  is  still  largely  based  on  mandatory  standards  and  pre-market  inspections.  In 
2024, 198 market surveillance inspections were carried out on 197 products, leading to 4 396 products 
being withdrawn from the market, of which 3 699 were destroyed. 

Harmonised area: sectoral legislation 

On the EU ‘new and global approach’ product acquis, no alignment with the EU acquis has taken 
place over the past 13 years. Legislation aimed to align with the EU acquis is not applied across the 
country  as  its  legislative  framework  is  fragmented.  The  Republika  Srpska  entity  implements  its 
legislation separately, contrary to a Constitutional Court ruling.  

There  was  no  progress  on  alignment  with  the  EU  ‘old  approach’  product  acquis,  including  on 
registration,  evaluation,  authorisation  and  restriction  of  chemicals  (REACH)  and  on  strengthening 

61 

 
 
administrative  capacity  in  this  area,  or  on  classification,  labelling  and  packaging  (CLP),  or  with 
procedural measures.  

There are no anti-corruption measures to monitor risks in product safety and no transparency of public 
bodies when inspecting products for market surveillance and conformity assessment. 

Chapter 2: Freedom of movements for workers 

Citizens of one Member State have the right to work in another Member State and must be given the 
same working and social conditions as other workers. 

Conditions for EU citizens to access to the labour market in Bosnia and Herzegovina are set in the 
Law on foreigners. The laws on the employment of foreigners in the entities and the Brčko District are 
not yet fully harmonised with the State-level law. A total of 5 798 work permits were issued in 2024, 
of which 3 422 work permits in the quota and 2 376 independently of it.  

Employment in the public administration is reserved for citizens of Bosnia and Herzegovina. Bosnia 
and  Herzegovina  still  lacks  the  countrywide  database  of  vacancies  required  to  join  the  European 
Employment Services (EURES) network. 

In  2024,  the  Labour  and  Employment  Agency  concluded  cooperation  agreements  with  the 
employment services of Slovenia, Montenegro and Türkiye.  The  coordination  of  social  security  schemes  remains 
fragmented,  with  limited  administrative  capacity  and  cooperation  among  authorities.  Bosnia  and  Herzegovina  has  agreements  on  social 
security in place  with  18  EU Member  States; no  new agreements  were  finalised. Social insurance agreements are in place 
with Slovenia, Serbia, Montenegro, North Macedonia, Austria, Germany and Hungary.  

There was no progress on the European Health Insurance Card (EHIC) over the reporting period. 
Bosnia  and  Herzegovina  should  continue  to  work  on  concluding  additional  agreements  on  social 
security coordination, in particular with EU Member States, and develop IT infrastructures for EHIC 
and Electronic Exchange of Social Security Information (EESSI) purposes, as well as administrative 
capacities in view of joining the future EESSI network. 

Chapter 3: Right of establishment and freedom to provide services 

EU  natural  and  legal  persons  have  the  right  to  establish  themselves  in  any  Member  State  and  to 
provide  cross-border  services.  For  certain  regulated  professions,  there  are  rules  on  mutual 
recognition of qualifications. EU rules on postal services focus on improving the quality of universal 
service, gradual market opening to competition, and the establishment of an independent regulator. 

The legislation on the right of establishment and on the freedom to provide cross-border services 
is not aligned with the EU acquis. No progress was made to develop a countrywide law on services in 
line  with  the  EU  Services  Directive,  and  no  screening  of  sector-specific  legislation  took  place  to 
prepare  it.  The  point  of  single  contact  has  not  been  established.  A  countrywide  inventory  of 
administrative  and  technical  measures  is  needed  to  remove  barriers  to  a  single  economic  space  and 
ensure businesses can operate across the country. Strong coordination among all levels of government 
is a prerequisite to ensure legislative alignment in this area. 

The legal framework for postal services is partially aligned with the EU acquis. A State-level strategy 
is required to prepare the postal market for full opening to competition. A new postal law at the State 
level  is  necessary  to  ensure  consistent  countrywide  alignment  and  implementation  of  the  EU  postal 
acquis,  including  the  Postal  Services  Directive  and  the  Regulation  on  cross-border  parcel  delivery 
services.  Preparations  are  ongoing  for  drafting  a  postal  law  and  to  consult  key  stakeholders.  The 
Agency  for  Postal  Traffic  needs  stronger  institutional  and  administrative  capacities  to  monitor  and 
enforce the new postal market rules. 

The  legislation  is  not  yet  aligned  with  the  EU  acquis  and  so  it  does  not  provide  for  the  mutual 
recognition  of  qualifications  for  regulated  professions  and  minimum  training  requirements  for 
access  to  certain  professions.  The  national  qualifications  framework  is  not  yet  referenced  to  the 
European qualifications framework. The Council of Ministers appointed a contact point on regulated 
professions.  This  however  is  not  fully  functional  as  the  legislation  remains  fragmented  across  the 
country. A detailed list of regulated professions is also still missing.  

62 

 
 
Chapter 4: Free movement of capital 

In the EU, capital and investments must be able to move without restrictions, with common rules for 
cross-border payments. Banks and other economic operators apply certain rules to support the fight 
against money laundering and terrorist financing. 

As  regards  capital  movements  and  payments,  there  was  limited  progress  on  the  liberalisation  of 
short  term  capital  restrictions.  Limited  restrictions  still  remain,  such  as  conditions  attached  to  the 
granting of loans.  

Bosnia and Herzegovina does not provide for equal treatment of foreign and domestic natural persons 
for the  acquisition  of real estate,  which  depends  on reciprocity.  This  should  have  been  remedied  by 
2021, in line with SAA commitments. Foreigners also cannot own agricultural land. 

Regarding payment services, Bosnia and Herzegovina still needs to adopt legislation to align with the 
EU  acquis  on  payments.  The  Republika  Srpska  entity  adopted  in  November  2024  implementing 
regulations  on  electronic  money  to  regulate  issuers  and  require  a  license  by  the  entity’s  banking 
agency,  and  issued  three  such  licences.  In  the  Federation  entity,  no  legislation  is  in  place  and  no 
licenses were issued.  

On  anti-money  laundering  and  countering  the  financing  of  terrorism  (AML/CFT),  a  beneficial 
ownership register of legal persons in line with the EU acquis has yet to be established, and a central 
access point to the competent authorities is yet to be ensured. Bosnia and Herzegovina needs urgently 
to take the recommended actions from the fifth round mutual evaluation report of Moneyval adopted 
in  December  2024.  The  financial  intelligence  unit  (FIU)  performs  the  tasks  set  forth  under  the 
AML/CFT Law in an autonomous, operational and independent way. 

Chapter 6: Company law 

The EU has common rules on the formation, registration and disclosure requirements of a company, 
with complementary rules for accounting and financial reporting and statutory audit. 

On  company  law  and  corporate  governance,  Bosnia  and  Herzegovina’s  legislation  is  aligned to a 
limited  extent  with  the  EU  acquis  and  needs  to  be  reviewed  and  harmonised  across  the  country. 
Bosnia  and  Herzegovina  needs  to  simplify  and  harmonise  the  requirements  for  businesses  and 
companies  to  register  and  operate  across  the  country  in  a  single  economic  space,  notably  by 
interconnecting and coordinating the business registers in the entities and the Brčko District. Further 
harmonisation is needed on certain aspects of company law, the use of digital tools and processes in 
company  law,  cross-border  operations  (mergers,  divisions,  conversions)  and  shareholder  rights, 
including encouraging long-term shareholder engagement. 

On  corporate  reporting,  the  legislation  is  aligned  to  a  limited  extent  with  the  EU  acquis.  Further 
alignment  with  the  latest  EU  acquis  is  needed,  especially  on  country-by-country  reporting  and 
transparency requirements for listed companies. As regards financial reporting, the legislation in both 
entities and the Brčko District prescribes the use of international financial reporting standards (IFRS) 
for  annual  and  consolidated  accounts  of  all  legal  persons.  Bosnia  and  Herzegovina  still  needs  to 
designate  one  single  supervisory  body  to  take  ultimate  responsibility  for  the  oversight  of  statutory 
auditors across the country, in line with the EU acquis. 

Chapter 7: Intellectual property law 

The EU has to a large extent harmonised rules for the legal protection and enforcement of intellectual 
property  rights  (IPR),  covering  notably  patents,  biotechnological  inventions  and  pharmaceuticals, 
including  supplementary  protection  certificates  (SPCs),  trade  marks,  designs,  geographical 
indications (GIs), including craft and industrial GIs, as well as copyright and related rights. 

The  intellectual  property  strategy  has  expired  and  has  still  not  been  replaced.  Some  preparations 
started to further align with the acquis on copyright and related rights, notably with draft legislative 
amendments that are pending parliamentary adoption.  

63 

 
 
On industrial property rights, further alignment is needed with the EU acquis on patents, trademarks 
and trade secrets, as well as on topographies of semiconductor products and industrial designs. In June 
2025,  the  Council  of  Ministers  endorsed  six  draft  laws  aimed  at  aligning  with  the  EU  acquis; 
parliamentary  adoption  is  pending.  Bosnia  and  Herzegovina  still  has  not  acceded  to  the  European 
Patent Convention as required by the SAA. 

Regarding  enforcement,  the  Indirect  Taxation  Authority  (ITA)  received  91  requests  for  customs 
measures  based  on  protected  trademarks,  one  on  design,  one  on  patent,  one  on  copyright  or  related 
rights  and  one  on  geographical  indications.  It  issued  75  decisions  on  the  temporary  detention  and 
seizure of goods. The State Investigation and Protection Agency (SIPA) investigated 21 cases, four of 
which were closed. The administrative and judicial capacity of enforcement institutions on intellectual 
property rights is insufficient and their coordination needs to improve. Training and awareness-raising 
should continue, in particular for court officers. Bosnia and Herzegovina continued collaboration with 
the European Union Intellectual Property Office (EUIPO), notably as regards integration into EUIPO 
databases and networks. 

Chapter 8: Competition policy 

EU rules protect free competition. They include antitrust rules against restrictive agreements between 
companies  and  abuse  of  dominant  position,  and  also  include  rules  on  concentrations  between 
companies which would significantly impede effective competition. EU rules also set out a system of 
State aid control. Governments are only allowed to grant State aid if restrictive conditions are met, 
with a view to preventing distortion of competition. 

Antitrust and mergers 

The legislative framework on antitrust and mergers is partially aligned with the EU acquis. The Law 
on competition of Bosnia and Herzegovina largely mirrors the rules in the EU treaties on restrictive 
agreements and abuse of dominant position but needs to be aligned with the most recent EU  acquis, 
including implementing legislation. 

As  for  the  institutional  framework,  the  functioning  of  the  Competition  Council  is  significantly 
impeded by ethnic-based decision-making, as decisions require support by at least one representative 
from  each  constituent  people  to  be  adopted.  The  Law  on  competition  needs  amendments  to  revise 
voting  procedures  in  line  with  the  EU  acquis.  Regarding  enforcement  capacity,  the  staff  of  the 
Competition Council needs to increase its expertise. 

On implementation, in 2024 the Competition Council conducted 28 investigations, took 48 decisions 
(compared with 11 in 2023) and imposed fines in 7 proceedings. It also issued 18 expert opinions. In 
the first half of 2025, it conducted 12 investigations, adopted 7 decisions  – with no fines imposed – 
and issued 8 opinions. The Competition Council should improve its enforcement record, in particular 
(i)  on  cartels,  by  conducting  more  on-site  inspections  and  by  raising  awareness  on  its  leniency 
programme, and (ii) on mergers, by imposing remedies where necessary.  The judiciary’s capacity to 
handle  complex  competition  cases  is  improving  but  needs  further  strengthening.  To  tackle  unfair 
competition in the market, the cooperation with other regulatory bodies needs to increase. 

State aid 

The legislative framework, including the Law on the State aid system, is partially aligned with the 
latest EU acquis and SAA provisions. The implementing legislation is uneven across the country. The 
Federation entity government adopted a bylaw on de minimis aid in March 2025. The legislation on de 
minimis aid, on services of general economic interest and on the purpose and conditions for granting 
State aid needs to be aligned with the EU acquis at State level and in the Brčko District. A regional aid 
map has not yet been drawn up and the existing aid schemes have not been aligned with the EU acquis 
and the SAA provisions.  

As for the institutional framework, the functioning of the State Aid Council is significantly impeded 
by ethnic-based decision-making, as decisions require support by at least one representative from each 

64 

 
 
constituent people to be adopted. The Law on State aid needs amendments to revise voting procedures 
in line with the EU acquis. 

The State Aid Council has insufficient enforcement capacity and is unable to fulfil its mandate. All 
its eight members have been appointed, including from the Federation entity, and carry out their duties 
alongside their primary jobs by meeting once a month. With only seven staff members, its secretariat 
also needs reinforcement.  

On implementation, the State Aid Council issued only one decision during the reporting period. Most 
State  aid  measures  are  put  in  place  by  granting  authorities  without  notification  or  prior  approval. 
Transparency of State aid measures is not ensured in Bosnia and Herzegovina. 

Liberalisation 

On liberalisation, the Law on competition and the Law on State aid apply to public undertakings and 
undertakings with special or exclusive rights. These rules needs to be enforced. The rules on financing 
services of general economic interest are not fully aligned with the EU acquis. 

Chapter 9: Financial services 

EU rules aim at ensuring fair competition among financial institutions,and the stability and integrity 
of  financial  markets,  namely  in  the  field  of  banking,  insurance,  supplementary  pensions,  investment 
services  and  securities.  They  include  rules  on  authorisation,  operation  and  supervision  of  these 
institutions. 

On banking and financial conglomerates, legislation requires further alignment with the latest EU 
acquis on capital requirements (Regulation and Directive). Both entity-level banking agencies adopted 
methodologies  to  identify systemically  important  banks,  in  line  with  the  guidelines  of  the  European 
Banking Authority (EBA). 

The  country  continued  implementing  the  methodology  for  the  supervisory  review  and  evaluation 
process  (SREP).  New  legislation  should  introduce  stronger  corrective  and  enforcement  powers  of 
supervisors and a consolidated supervision of banking groups across the country.  

Regarding bank resolution, no concrete steps have been taken to further align with the EU acquis and 
to  reduce  the  institutional  and  legal  obstacles  to  a  well-functioning  resolution  framework.  These 
include  establishing  a  countrywide  resolution  fund,  in  line  with  the  Bank  Recovery  and  Resolution 
Directive, to ensure that there are adequate resources available to efficiently handle potential crises.  

Regarding  insurance  and  occupational  pensions,  the  entities’  legislation  on  compulsory  vehicle 
insurance  were  further  harmonised  with  a  view  to  achieving  a  countrywide  approach  to  the 
liberalisation of the insurance market.  The Insurance Agency of Bosnia and Herzegovina prepared a 
conformity  analysis  of  the  entity  laws  with  the  Solvency  II  Directive.  No  progress  was  made  on 
voluntary pensions. Alignment with the EU acquis governing financial supervision of institutions for 
occupational retirement provision has not been addressed. 

In terms of financial market infrastructure, no measures have been taken in the reporting period to 
further  align  with  the  EU  acquis  in  order  to  achieve  safe  and  efficient  securities  clearing  and 
settlement or the reliable provision of associated post-trade services. 

On  securities  markets  and  investment  services,  the  entity-level  legislation  and  regulatory  bodies 
remain neither harmonised across the country nor aligned with the EU acquis. Coordination between 
the  entities  still  needs  to improve.  No  progress  was made on  investment funds.  The  first  alternative 
investment  fund  and  first  company  to  manage  alternative  investment  funds  were  established  in  the 
Republika Srpska entity, aiming to align with the EU acquis.  

On sustainable and digital finance, there were no developments in the reporting period. There is no 
legal and regulatory framework for digital identity, and banks can only offer hybrid solutions.  

Chapter 28: Consumer and health protection 

EU  rules  protect  consumers’  economic  interests  and  also  ensure  product  safety,  prevent  dangerous 

65 

 
 
imitations  and  establish  liability  for  defective  products.  The  EU  also  guarantees  a  high  level  of 
protection of public health and in particular also ensures high common standards for tobacco control, 
blood, tissues, cells and organs, and human and veterinary medicinal products. The EU also has rules 
for  upholding  patients’  rights  in  cross-border  healthcare  and  in  preparing  for  and  responding  to 
serious cross-border health threats, including communicable diseases. 

Consumer protection 

On  horizontal  aspects,  the  2006  State-level  Law  on  consumer  protection  is  not  aligned  with  the 
latest  EU  acquis.  Countrywide  alignment  with  the  latest  EU  acquis  is  needed,  including  on  digital 
markets and to address the risk of unequal protection of consumers across the country. Administrative 
capacities, notably of the Ombudsman institution, need to be further improved. The legal framework 
for  consumer  credit  and  distance  marketing  of  financial  services  is  also  not  aligned  with  the  EU 
acquis. The Ombudsman’s office for consumer protection issued decisions and provided legal advice 
in 1 100 consumer complaints in 2024. 

No annual State consumer protection programme was prepared by the Consumer Protection Council, 
and  the  legal framework  for  product  safety  is still not  aligned  with  the  EU  acquis.  The  State-level 
Market  Surveillance  Agency  has  initiated  a  reactive  market  surveillance  mechanism  based  on  the 
information on  unsafe  products  and  is  publishing  notifications  on  unsafe  products on its  website,  as 
well as the weekly reports of the EU safety gate rapid alert system.  

Public health 

No  progress  was  made  in  drafting  a  public  health  strategy  at  State  level  or  in  the  Brčko  District. 
There is no State-level health information strategy and there were no developments on e-Health in the 
reporting period. On tobacco control, legislation in the entities and the Brčko District is not aligned 
with the relevant EU acquis. The Federation entity Law on tobacco control is not fully enforced due to 
lack of controls. There is no systematic monitoring of the implementation World Health Organization 
(WHO) framework convention on tobacco control. In October 2025 the Council of Ministers approved 
joining the protocol to eliminate illicit trade in tobacco products. There were no developments on anti-
microbial resistance in the reporting period. 

There  was  no  progress  on  alignment  with  the  EU  acquis  on  human  and  veterinary  medicinal 
products,  on  medicinal  products  for  veterinary  use,  or  on  medical  devices  or  on  health  technology 
assessment. Patients have only limited access to certain medicines, due to long registration and control 
procedures.  The  legal  framework  on  blood,  tissues,  cells  and  organs  is  not  aligned  with  the  EU 
acquis,  and  there  is  no  administrative  capacity  to  apply  it.  The  cooperation  between  the  entities’ 
transfusion  institutes  is  very  limited,  with  no  countrywide  oversight  system  to  ensure  efficient 
coordination. 

Legislation on serious cross-border health threats, including communicable diseases, is not aligned 
with the EU acquis. Coordination among the entities and State institutions on communicable disease 
surveillance  and  response  needs  to  be  strengthened.  Bosnia  and  Herzegovina’s  participation  in  the 
technical  activities  of  the  European  Centre  for  Disease  Prevention  and  Control  (ECDC)  remains 
limited.  The  legislation  is  not  aligned  with  the  EU  acquis  on  patient’s  rights  in  cross-border 
healthcare.  

Measures  to  promote  healthy  lifestyles  and  prevent  non-communicable  diseases  are  partially 
implemented by the competent institutions of the entities and the Brčko District. 

On preventive measures, as regards cancer screening, both entities have cancer registers but there is 
no countrywide cancer control plan or early detection programme. The Republika Srpska entity has an 
early  detection  programme.  There  was  no  progress  on  mental  health,  on  drug  abuse  prevention  and 
harm reduction, or on nutrition and physical activity. Civil society groups work to reduce harmful use 
of alcohol and prevent related disorders. 

On health inequalities, access to healthcare is still a key challenge, especially for marginalised groups 
including Roma, women from rural areas and women with disabilities.  Women and girls suffer from 

66 

 
 
lack of health insurance and poorly organised services, especially on sexual and reproductive health. 
Conditions in hospitals and maternity hospitals need to be improved and obstetric violence eliminated. 
Specialised support for victims of sexual violence is not available across the country, with only three 
crisis centres, all located in the Federation entity. Despite improvements in addressing gender-based 
violence,  a  multi-sectoral  response  mechanism  for  victims  still  needs  to  be  developed.  (See  also 
Chapter 19 – Social policy and employment) 

Persistent  corruption at  all  levels continues to significantly  affect  healthcare  policy  and  delivery  of 
healthcare  services  throughout  the  country.  Corruption  occurs  notably  at  high  level  and  when 
procuring  essential  medical  equipment  and  medications  for  most  severe  diseases.  Addressing 
corruption in this sector requires comprehensive reforms, strengthening the legal framework, boosting 
transparency and accountability, and encouraging a professional culture of integrity. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

This cluster covers: Digital transformation and media (Chapter 10); Taxation (Chapter 16); Economic 
and  monetary  policy  (Chapter  17);  Social  policy  and  employment  (Chapter  19);  Industrial  policy 
(Chapter  20),  Science  and  research  (Chapter  25);  Education  and  culture  (Chapter  26);  and  Customs 
union (Chapter 29). 

Chapter 10: Digital transformation and media 

The  EU  supports  the  smooth  functioning  of  the  internal  market  for  electronic  communications, 
electronic commerce and audiovisual services. The rules protect consumers and support the universal 
availability of modern services. 

On electronic communications, Bosnia and Herzegovina made no progress in aligning the legislation 
with  the  EU  acquis,  including  the  Broadband  Cost  Reduction  Directive  (BCRD)  and  the  Gigabit 
Infrastructure Act (GIA). Bosnia and Herzegovina needs to adopt a telecommunications sector policy, 
and  to  develop  a  broadband  strategy.  The  granting  of  radio  spectrum  licences  for  5G  mobile 
communications  is  further  delayed.  The  Communications  Regulatory  Agency  (CRA)  still  lacks 
financial and political independence.  

On  digital  services,  Bosnia  and  Herzegovina  made  no  progress  in  adopting  a  countrywide  strategy 
and action plan for the development of an information society. Bosnia and Herzegovina took no action 
to develop an open data policy. The country is invited to fully align with the EU’s Digital Services Act 
(DSA), the Digital Markets Act (DMA), the Artifical Intelligence Act, the European interoperability 
framework  and  the  Interoperable  Europe  Act.  There  is  still  no  coordinated  and  jointly  planned 
approach  for  the  digital  transformation  of  public  services  throughout  the  country,  with  very  limited 
data exchange between the services. 

On  digital  trust  and  cybersecurity,  Bosnia  and  Herzegovina  still  does  not  have  a  comprehensive 
legislative  framework  on  the  security  of  networks  and  information  systems.  No  countrywide  single 
point  of  contact  has  yet  been  designated.  Bosnia  and  Herzegovina  needs  to  establish  one  or  more 
computer  security  incident  response  teams  (CSIRTs)  to  facilitate  strategic  cooperation  and  the 
exchange of information. The continued lack of a comprehensive legislative or strategic framework for 
cybersecurity increases the scale of potential threats. The country needs to continue implementing the 
EU toolbox on cybersecurity of 5G networks,  including by assessing the risk profile of suppliers and 
by  putting  in  place  appropriate  restrictions  and  exclusions  for  high-risk  suppliers.  No  progress  was 
made in adopting a Law on electronic identity and trust services for electronic transactions in line with 
the EU acquis. The EU recommendation remains to establish a single supervisory body for the whole 
country. There was no progress in ensuring the interoperability of electronic signature throughout the 
country. 

As  regards  the  media,  TV  stations  suspended  analogue  terrestrial  broadcasting,  prompting  public 
broadcasting services to acquire equipment for the switch to digital terrestrial broadcasting. A  public 
services broadcasting corporation should be set up as a separate legal entity as provided by the Law. 
Bosnia and Herzegovina should revise the financing model for local public broadcasters to reduce the 
risk  of  political  pressure  and  influence.  Without  stable,  independent  and  adequately  funded  public 

67 

 
 
service  media,  the  country  cannot  fulfil  core  obligations  related  to  media  pluralism,  digital 
transformation, and democratic accountability. 

Chapter 16: Taxation 

EU  rules  on  taxation  cover  VAT,  excise  duties  and  aspects  of  corporate  taxation.  They  also  cover 
cooperation  between  tax  administrations,  including  the  exchange  of  information  to  prevent  tax 
evasion. 

The legislative framework for indirect taxation is partially aligned with the EU acquis. In April 2025, 
the Law on the value added tax (VAT) was amended to allow VAT refunds on the purchase of a first 
real-estate property. However, the necessary bylaws have yet to be adopted. 

As  regards  excise  duties  on  tobacco,  alcohol  and  energy,  and  general  rules  for  the  production, 
keeping, storage, movement and controls on products that are subject to excise duties, full alignment 
of the legislation with the EU acquis is needed. 

On direct taxation, the tax and social contribution regimes in the two entities still differ, hindering 
progress towards a single economic space. The Federation entity assembly adopted amendments that 
reduced the labour tax wedge by decreasing the cumulative rate of social contributions, specifically by 
reducing pension and health insurance contributions paid by employers.  The Republika Srpska entity 
amended  its  Law  on  income  tax,  harmonising  thresholds  for  self-employed  professionals  with  the 
Federation entity. 

On  administrative  cooperation  and  mutual  assistance,  Bosnia  and  Herzegovina  has  not  yet 
committed  to  automatically  exchanging  financial  account  information  based  on  the  OECD  single 
global standard.  

Concerning  operational  capacity  and  digitalisation,  the  various  tax  administrations  should  further 
improve coordination, cooperation and data exchange. The administrative capacity and staffing levels 
of the Indirect Taxation Agency (ITA) remain insufficient. Bosnia and Herzegovina needs to improve 
cooperation  between  the  Indirect  Taxation  Authority  and  the  tax  administrations,  including  through 
joint audits.  

Chapter 17: Economic and monetary policy 

EU  rules  require  the  independence  of  central  banks  and  prohibit  them  from  directly  financing  the 
public sector. Member States coordinate their economic policies and are subject to fiscal, economic 
and financial surveillance. 

As regards monetary policy, the currency board anchors the convertible mark (BAM) to the euro. The 
Central  Bank’s  objective  of  currency  stability  remains  in  contrast  with  the  primary  objective  of 
monetary policy in the EU, which is price stability. The Law on the Central Bank does not ensure the 
bank’s  unconditional  independence  and  is  not  fully  aligned  with  the  EU  acquis  as  regards  the 
prohibition of monetary financing. Preserving the integrity of the currency board arrangement and the 
independence of the Central Bank remains crucial. 

Regarding  economic  policy,  fiscal  rules  remain  at  entity  level  and  there  is  no  independent  fiscal 
institution  to  monitor  and  enforce  compliance  countrywide.  The  underlying  statistical  framework  is 
not sufficiently aligned with the requirements and definitions of the European system of national and 
regional accounts (ESA 2010). The country failed again to adopt in time the global fiscal framework, 
as  set  by  law,  to  provide  a  countrywide  medium-term  budgetary  framework  as  guidance  for  the 
coordinated  and  timely  adoption  of  the  annual  budgets  by  all  levels  of  government.  The  country’s 
Fiscal  Council  does  not  comply  with  the  EU  acquis  requirements,  notably  lacking  institutional 
independence.  The  Central  Bank  postponed  the  2025  excessive  deficit  procedure  notification.  (See 
also Chapter 18: Statistics)  

There were no significant improvements in the quality of the Economic Reform Programme (ERP) 
which was again submitted with a substantial delay. The policy guidance, jointly agreed in May 2024, 
was implemented only to a limited degree, which is a deterioration compared to the previous year. The 

68 

 
 
capacity  to  design,  implement  and  monitor  structural  reforms  remains  limited,  while  insufficient 
political  support  contributes  to  delays  in  formulating  the  countrywide  reform  programme.  The 
Directorate for Economic Planning of the Council of Ministers still lacks sufficient resources, powers 
and political support to efficiently coordinate the process.  

Chapter 19: Social policy and employment 

EU  rules  in  the  social  field  include  minimum  requirements  for  labour  law,  equality  and  non-
discrimination  health  and  safety  at  work.  They  also  promote  social  inclusion  and  social  protection, 
and social dialogue at EU level. 

To  fully  meet  European  standards  regarding  the  labour  law,  the  legal  framework  requires  further 
improvement  in  several  areas,  notably  as  regards  the  protection  of  workers  from  discrimination. 
Implementation  remains  inadequate,  especially  on  social  dialogue,  protection  of  workers  and  the 
enforcement of labour inspections. 

The  bylaws  on  health  and  safety  at  work  regulating  specific  aspects  of  occupational  safety  and 
health need to be adopted and harmonised with the EU  acquis throughout the country. Enforcement 
and  implementation  of  legislation  remain  partial,  especially  when  it  comes  to  inspection  capacity, 
prevention  of  injuries,  investment  in  safety  and  training,  and  risk  assessment.  Data  collection  and 
dissemination  on  work-related injuries and  diseases  needs to  be  improved.  No  countrywide  data  are 
collected on accidents and fatalities.  

Social  dialogue  is  weak  at  all  levels,  with  no  significant  improvements.  Social  partners  are  not 
sufficiently involved in the design and implementation of policies. Their capacities are low and need 
to be strengthened, particularly in the private sector. There are no general collective agreements, and 
only few concluded branch and sectoral collective agreements, mainly in the public sector. Entity-level 
Economic and Social Councils operate unevenly, and there is no such body at State level. Significant 
gaps remain in ensuring freedom of association for trade unions and the right to collective bargaining. 

A countrywide employment policy strategy is pending adoption by the Council of Ministers, 11 years 
after the previous one expired in 2014. According to the labour force survey for 2024, the activity rate 
is  49.1%,  the  employment  rate  is  42.9%,  the  unemployment  rate  is  12.6%  and  the  inactivity  rate  is 
50.9%.  (See  the  statistical  annex  and  the  section  on  the  functioning  of  the labour  market  under  2.3 
Economic criteria).  

Women are 31.6% of all employed persons and 48.4% of the unemployed. Unemployment especially 
affects the youth, as registered at 30.2% for the 15-24 year cohort. Informal employment remains high. 
Public employment services are burdened by administering social benefits rather than assisting active 
jobseekers.  Registration  with  public  employment  services  gives  access  to  social  benefits  including 
basic  health  insurance,  encouraging  even  informal  workers  and  inactive  persons  to  register  as 
unemployed.  While  both  entities  now  have  strategies  that  embed  the  Youth  Guarantee,  Bosnia  and 
Herzegovina needs to swiftly complete and adopt the Youth Guarantee implementation plan.  

There  are  no  countrywide  strategies  on  poverty  reduction,  social  protection  and  inclusion,  nor  is 
there a State-level monitoring system. For persons with disabilities, institutional care is still prevalent, 
accessibility remains a challenge, and there are only few community services to support independent 
living.  Some  progress  was  made  in  the  reform  of  the  assessment  of  children  with  disabilities.  The 
social  protection  system  remains  underdeveloped  and  ineffective.  A  large  number  of  people  is  not 
covered by public health insurance while eligibility conditions and coverage differ among entities and 
cantons. Cooperation between social service centres and employment services is not well established. 
No measures were taken to address child exploitation, child begging and child poverty. Roma children 
are  particularly  vulnerable  to  the  worst  forms  of  child  labour.  The  country  needs  to  ensure  health 
insurance  to  all  children.  Following  the  invitation  by  the  European  Commission,  a  national  contact 
point for the European Child Guarantee has been nominated. 

Both  entities  and  the  Brčko  District  adopted  a  roadmap  and  are  developing  an  action  plan  for 
deinstitutionalisation in cooperation with UNICEF and the Ministry of Civil Affairs, to improve the 
condition and status of institutionalised children. (See Chapter 23 – Fundamental rights) 

69 

 
 
Bosnia and Herzegovina should adopt countrywide measures to improve the living conditions of older 
people.  Bosnia  and  Herzegovina  is  yet  to  publish  the  EU  statistics  on  income  and  living  conditions 
(EU-SILC), stemming from surveys conducted in 2022-2023. 

Positively, Bosnia and Herzegovina joined the ‘Employment and Social Innovation’ (EaSI) strand of 
the  European  Social  Fund Plus  (ESF+)  allowing  CSOs  and  public  administrations  to  develop  social 
innovation practices, capacity-building actions, and social and employment policies. 

There  are  no  comprehensive  strategies  or  action  plans  on  non-discrimination  in  employment  and 
social policy. Although entity labour laws address the issue of non-discrimination at work, alignment 
with  the  EU  acquis  must  be  completed,  including  the  employment  equality  and  racial  equality 
directives. Most public bodies do not have mechanisms for dealing with complaints of mobbing and 
discrimination in line with the country’s Law on non-discrimination. 

The  principle  of  equal  opportunities  and  equal  treatment  of  men  and  women  in  matters  of 
employment  and  social  policy  is regulated  by  the  laws  on  gender  equality  and  anti-discrimination, 
and  by  the  entity-level  labour  laws,  but  enforcement  remains  low.  Rights  prescribed  by  the  EU 
Directive on work-life balance for parents and carers are only partially recognised by law. The country 
needs  to  establish  uniform  minimum  maternity  leave  benefits  across  the  country  and  harmonise  the 
definition of maternity, paternity and parental leave to eliminate discrimination and harmonise relevant 
benefits  in  public  and  private  sector.  Despite  existing  legislation  on  workplace  sexual  harassment, 
enforcement remains weak. The gender pay gap persists, with women earning only 78–85% of men's 
salaries for the same work. The gender action plan 2023–2027 lacks funding and monitoring. Bosnia 
and Herzegovina is stagnating or declining across most areas of the gender equality index, and the gap 
to the EU average continues to grow. While its legal framework partially aligns with the EU  acquis, 
gender stereotypes persist, and women bear most unpaid care work. Access to affordable childcare and 
early childhood education facilities remain limited. The tax-benefit system is predominantly reflecting 
traditional gender roles. 

of 

action 

had 
while 

Bosnia and Herzegovina’s Gender Equality Law has only general provisions on equal rights to access 
economic activities. The law prohibits denial of promotion on the basis of gender; however it has no 
specific provision on achieving the gender balance among directors of listed companies. In 2022 (last 
data  available),  the  management  structure  of  the  selected  companies  consisted  of  15%  women  and 
two 
85%  men.  Only 
female 
companies 
the 
presidents, 
remaining  eight  companies 
had  male  presidents.  The 
the 
implementation 
plan 
gender 
demonstrated  a  commitment 
to  gender  equality,  with 
some  steps  taken  towards 
addressing  violence  against 
women  and  data  collection. 
However, challenges remain 
in 
consistent 
implementation across all levels of government and harmonised data collection practices. Bosnia and 
Herzegovina  has  made  some  progress  on  institutional  frameworks  and  policy  dialogue  in  terms  of 
gender  mainstreaming.  However,  changes  are  limited  and  fragmented  throughout  the  country.  The 
country has embedded gender responsive budgeting (GRB) in its legislation since 2009, with gender 
indicators  required  in  budget  planning  with  entity-level  implementation.  Traditional  norms  persist, 
with 25% of households viewing childcare as solely a woman’s responsibility and 50% reporting that 
women  manage  household  tasks  alone.  There  is  no  evidence  of  tax-benefit  systems  that  equalise 
financial incentives for both parents to enter the labour market. Family benefits and caregiving income 

ensuring 

70 

 
 
recognition exist, but they are modest and inconsistent. Active harmonisation with EU systems has not 
yet been achieved. The alignment with the pay transparency directive has not started yet. 

Chapter 20: Enterprise and industrial policy 

EU  industrial  policy  strengthens  competitiveness,  facilitates  structural  change  and  encourages  a 
business-friendly environment that stimulates small and medium-sized enterprises (SMEs). 

During  the  reporting  period,  both  entities  increased  and  diversified  incentives  for  SMEs,  to  raise 
competitiveness through technological modernisation and energy efficiency.  

In  January  2025,  the  Federation  entity  adopted  a  Law  on  social  enterprises  to  improve  support  for 
hard-to-employ groups, and in March 2025 it also adopted a strategy for the development of SMEs, 
valid until 2027. The Federation entity adopted bylaws for a more enabling environment for SMEs. In 
November  2024,  the  Republika  Srpska  entity  adopted  legislation  on  individual  traders  and  on 
incentives, as well as the annual SMEs report. The Republika Srpska entity also amended its SME law 
to  align  with  EU  principles  on  business  failure  second  chance.  There  are  still  no  countrywide 
guidelines for harmonisation of SME support in line with the EU Small Business Act. The alignment 
of the legislation with the EU acquis remains to be assessed.  

On  enterprise  and  industrial  policy  principles,  there  is  still  no  countrywide  development  strategy 
and no State-level body promoting policy consistency with industrial strategies. In February 2025, the 
Republika Srpska entity adopted an action plan for its industrial development strategy.  

Limited  steps  were  taken  to  improve  the  business  environment  and  to  attract  investments.  The 
Republika Srpska entity amended its law on foreign direct investments (FDI) and adopted the action 
plan for its FDI strategy 2025-2027 and decisions on the functioning of the foreign investors council 
and on granting free zone status to Gradiška. Work also started on a countrywide roadmap to improve 
competitiveness of free zones. High barriers to starting a business, rules on taxes and para-fiscal (non-
tax) charges and regulatory differences across various levels of government remain to be addressed. 
Separate  business  registers  make  it  harder  for  companies  to  operate  throughout  the  country.  (See 
Chapter 6 – Company law)  

As  for  investment  environment,  the  resolution  rate  of  commercial  disputes  remains  low  and 
arbitration weakly developed. There is room to align alternative dispute resolution mechanisms with 
EU standards and best practices.  

Functional  mechanisms  and  capacities  for  effective  oversight  and  governance  of  publicly-owned 
enterprises are still lacking. Notably, only the Republika Srpska entity has published an annual report 
on the performance of the 20 largest public companies, highlighting a significant gap in transparency 
and  accountability  at  all  government  levels.  The  Republika  Srpska  entity  has  introduced  legislative 
preconditions but still lacks a single register of publicly-owned enterprises, and the Federation entity 
has formally established oversight and management units but they are still not functional. (See Section 
2.3 Economic criteria-Privatisation and restructuring) 

Preparations  for  the  green  and  digital  transitions,  resilience,  and  global  competitiveness  of 
industry  are  at  a  very  early  stage.  Progress  on  energy  diversification  and  a  greater  focus  on  green 
investments in manufacturing are needed.  The financial support for introducing innovations in green 
and digital transformation needs to be improved, in particular for SMEs, including start-ups.  

There is no improvement of transparency and accountability in the use of public funds. The capacity 
and funding to perform monitoring and evaluations of enterprise and industrial policy measures are 
still overly limited, and the statistical data remain insufficient. 

As for enterprise and industrial policy instruments, no progress was made in aligning with the EU 
acquis the legislation against late payments in commercial transactions. 

Bosnia  and  Herzegovina  continues  to  participate  in  the  EU  Single  Market  programme  through  two 
entity-based consortia  selected  under the  call for  European  Enterprise  Network.  As  regards  sectoral 
policies,  some  cantons  are  implementing  dedicated  programmes  for  the  development  of  tourism. 

71 

 
 
However, the level of harmonisation with the EU acquis and standards remains to be assessed for all 
adopted legislation in the sector. In January 2025, the Federation entity  adopted its sectoral strategy 
for textiles and clothing for 2024–2033. 

Chapter 25: Science and research 

The EU provides significant support for research and innovation. All Member States can participate 
in  the  EU’s  research  and  innovation  programmes  and  benefit  from  them,  especially  where  there  is 
scientific excellence and a solid investment in research and innovation. 

The  legislative framework on  research  and  innovation  policy  remains  fragmented and needs to  be 
improved.  Bosnia  and  Herzegovina  needs  to  develop  and  adopt  a  new  strategy  and  action  plan  for 
scientific development, as well as a smart specialisation strategy.  

The estimated total allocations for research and innovation remain below 0.3% of GDP, which is far 
below the European Research Area objective. There is no countrywide policy on topics related to the 
European Research Area, as decisions are made by each university.  

Bosnia  and  Herzegovina  is  included  in  the  European  Innovation  Scoreboard  with  performance  at 
33.1%  of  the  EU  average  in  2024.  The  country’s  performance  is  below  the  average  of  ‘emerging 
innovators’  (48%)  and  the  performance  gap  with  the  EU  is  increasing.  Further  progress  should  be 
made to ensure reliable and comprehensive statistics on research and innovation, useful for instance 
for the European Innovation Scoreboard and the European Research Area.  

Regarding EU framework programmes, Bosnia and Herzegovina takes part in Horizon Europe as an 
associated country. It received EUR 1.7 million in 2024, compared to EUR 3.2 million in 2023. 

Chapter 26: Education and culture 

The  EU  supports  cooperation  in  education  and  culture  through  funding  programmes  and  the 
coordination  of  Member  State  policies  through  the  ‘open  method  of  coordination’.  The  EU  and  the 
Member States must also prevent discrimination and ensure quality education for children of migrant 
workers, including those from disadvantaged backgrounds. 

On education and training, Bosnia and Herzegovina needs to move from a content-oriented towards 
a competency-based approach to education. Transformation and harmonisation of curricula is needed 
to ensure systemic regulation of learning and teaching process.  

Bosnia  and  Herzegovina  did  not  take  part  in  the  2024  TALIS  assessment.  It  only  partially  join  the 
2023 ICILS and 2023 TIMSS assessments, as the Republika Srpska entity and the West Herzegovina 
Canton did not conduct them. The country dropped out of the 2021 PIRLS. After failing to participate 
in  two  PISA  rounds  (2022  and  2025),  preparations  to  join  the  2029  PISA  need  to  intensify.  No 
systemic measures have been taken to address the findings of the 2018 PISA and 2019 TIMSS. In the 
absence  of  a  countrywide approach, some  cantons  have  started reforming  their curriculum  based  on 
student learning outcomes to improve quality in line with recommendations. Bosnia and Herzegovina 
has enrolled to join TIMSS 2027. 

Although  the  legal  framework  is  in  place,  there  is  still  no  mechanism  to  systematically  measure  or 
monitor  the  quality  of  education  inputs,  outputs  or  outcomes,  and  data  does  not  feed  into  the 
policymaking process. Due to demographic changes, the number of students is in decline. 

Disputes  over  education  continue,  while  systemic  solutions  are  not  in  place  to  ensure  inclusive  and 
non-discriminatory education, eliminating the practice of ‘two schools under one roof’. The common 
core curriculum remains incomplete and is not applied throughout the country, and the availability of 
teaching of the national group of subjects remains limited. Despite Constitutional Court decisions, the 
name of the Bosnian language is still not recognised in schools in the Republika Srpska entity, leading 
to  recurrent  friction.  Biased  narratives  on  wartime  heroes  and  victims  are  present  in  all  curricula, 
contributing  to  a  politicised  education.  In  January  2025,  the  Constitutional  Court  repealed  as 
unconstitutional certain history lessons on the 1992-1995 war. 

72 

 
 
Bosnia and Herzegovina is a member of the European Higher Education Area. On higher education, 
according  to  the  2024  Bologna  Process  implementation  report,  the  country  still  needs  to  ensure  full 
implementation  of  the  key  commitments,  especially  with  regards  to  national  qualifications 
frameworks, automatic recognition and quality assurance. 

Regarding  inclusiveness,  some  positive  steps  were  undertaken  through  the  roadmap  for  improving 
inclusive education, notably with a decision of the Council of Ministers in September 2025 to intensify 
efforts to support quality education for all. All education authorities should step up work to implement 
the 2020 roadmap, meeting all recommendations and  reporting on it. Infrastructure and fundings are 
needed for the education of children with special needs.  

There  is  no  countrywide  coordinated  approach  and  only  limited  effort  in  supporting  the  digital 
transformation  of  education  and  training,  including  on  digital  skills,  also  ensuring  that  core  teacher 
competencies are properly developed. The authorities need to strengthen their efforts, in line with the 
EU  digital  education  action  plan  2021-2027.  The  establishment  of  an  advisory  board  for  digital 
education represents a step forward but further efforts are needed. 

A countrywide policy document on vocational education and training (VET) has been in place since 
2021,  based  on  the  Riga  conclusions.  However,  no  noticeable  progress  followed.  In  a  positive 
development,  Bosnia  and  Herzegovina  joined  the  European  Alliance  for  Apprenticeships  (EafA)  in 
October  2024,  showing its  commitment  to  improving  youth  employment. Measures to  promote  life-
long learning of adults (including women) also need to be stepped up. 

Bosnia  and  Herzegovina’s  national  qualifications  framework  (NQF)  is  not  yet  referenced  to  the 
European  qualifications  framework  (EQF),  nor  is  there  a  mechanism  for  the  validation  of  prior 
learning. Cooperation continued between the two accreditation agencies, one at State level and one in 
the  Republika  Srpska  entity.  Bosnia  and  Herzegovina  needs  to  further  improve  quality  assurance  in 
higher  education  and  to  intensify  accreditation  of  study  programmes  with  a  view  to  joining  the 
European Association for Quality Assurance (ENQA). 

Bosnia  and  Herzegovina  benefits  from  the  international  dimension  of  the  2021-2027  Erasmus+ 
programme.  The  country  is  participating  in  all  the  working  groups  2021-2025  of  the  European 
Education Area (Bologna process). Four universities from Bosnia and Herzegovina have been selected 
as partners in alliances funded by the European Universities Initiative. 

Bosnia and Herzegovina continued to participate in the European week of sport. 

In the area of culture, Bosnia and Herzegovina continues to implement measures under the UNESCO 
Convention on the protection and promotion of the diversity of cultural expression. The country still 
has to ensure a permanent solution to the legal status and financing for the seven ‘cultural institutions 
of national significance for Bosnia and Herzegovina’. Bosnia and Herzegovina continues to participate 
fully in the Creative Europe programme. 

The  budget  allocation  for  culture  at  all  levels  of  government  would  improve  with  longer-term, 
multiannual funding decisions to provide financial stability for cultural creation and operation. Bosnia 
and  Herzegovina  would  benefit  from  establishing  formal  partnership  structures  enabling  transparent 
and organised participation in cultural policymaking. 

Chapter 29: Customs union 

All  Member  States  are  part  of  the  EU  customs  union  and  follow  the  same  customs  rules  and 
procedures.  This  requires  legislative  alignment  as  well  as  adequate  implementing  and  enforcement 
capacity and access to and interoperability with the EU electronic customs environment. 

The  Indirect  Taxation  Authority  (ITA)  is  in  charge  of  implementing  the  customs  legislation  and 
policies, which should be further aligned with the EU acquis including the Union customs code. Four 
companies  have  been  recognised  as  authorised  economic  operators  (AEOs),  two  of  them  in  the 
reporting period.  The customs tariff and classification of goods are aligned with the EU’s combined 
nomenclature. The country continues to apply the Pan-Euro Mediterranean Convention and has begun 
adopting the transitional rules of origin in trade with the EU. 

73 

 
 
Bosnia and Herzegovina is still an observer in the Common Transit Convention and intends to join it 
once it has met all legal and technical requirements, including upgrading its new computerised transit 
system,  which  has  been  operational  since  August  2022.  Bosnia  and  Herzegovina  should  continue 
aligning with the EU acquis its provisions on the customs enforcement of intellectual property rights. 
The country should implement the CEFTA additional protocol 5 on the the mutual recognition of AEO 
programmes. The AEO programme was positivelly assessed by CEFTA during the reporting period. 
Bosnia and Herzegovina should improve cooperation, including with the European Anti-Fraud Office 
(OLAF), and step up the use of anti-fraud tools to combat cross-border smuggling of tobacco products 
and  other  illicit  activities.  Bosnia  and  Herzegovina  has  yet  to  accede  to  the  WHO  Framework 
Convention  on  Tobacco  Control  and  its  protocol  to  eliminate  illicit  trade  in  tobacco  products.  In 
October 2025 the Council of Ministers approved joining the latter protocol. The exchange of customs 
information within the framework of mutual administrative assistance to detect, prevent and combat 
customs fraud needs to be made effective and fully operational. 

The  administrative  and  operational  capacity  of  the  Indirect  Taxation  Authority  should  be 
substantially  strengthened,  especially  in  operational  posts.  The  risk  management  system  remains 
inadequate  and  customs  authorities  still  perform  40%  of  checks  physically  (decrease  from  60%  in 
2023). Bosnia and Herzegovina needs to align its customs IT systems with EU requirements to achieve 
interoperability with the common customs IT systems.  

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY 

This  cluster  covers  transport  (Chapter  14);  energy  (Chapter  15);  trans-European  networks  (Chapter 
21); and environment and climate change (Chapter 27). 

Chapter 14: Transport policy 

The EU has common rules on technical and safety standards, security, social standards, State aid and 
market  liberalisation  in  road  transport,  railways,  inland  waterways,  multimodal  transport,  aviation 
and maritime transport. 

Regarding  the  general  EU  transport  acquis,  Bosnia  and  Herzegovina  implements  its  transport 
strategy valid until 2030; an updated strategy with more realistic actions and deadlines is still pending 
adoption. Reforms in the transport sector have been insufficient for several years. The country should 
speed  up  proper  implementation  in  all  modes  of  transport.  Activities  mostly  relate  to  infrastructure 
projects  while  little  or  no  attention  is  given  to  delivering  on  the  commitments  contained  in  the 
Transport  Community  Treaty  (TCT),  its  action  plans  and  elements  arising  from  the  smart  and 
sustainable  mobility  strategy  for  the  Western  Balkans.  Sustainable  urban  mobility  plans  should  be 
developed following EU practice, respecting environmental and social standards. An overall strategy 
for an intelligent transport system covering all modes of transport is yet to be adopted and appropriate 
resources should  be  allocated  for its 
implementation. 

transport, 
road 

the 
road 
On 
implementation  of 
safety 
legislation remains a concern, as the 
number  of  crashes  and  fatalities  is 
still very high. Discrepancies persist 
between  domestic  and  WHO  data. 
There is still no lead agency for road 
safety  or  countrywide  system  to 
collect  data  on  road  crashes.  No 
progress  was  made  in  the  area  of 
transport  of  dangerous  goods.  The  legislation  on  road  infrastructure  safety  management  is  yet  to  be 
aligned with the EU acquis, including on inspections and audits. Alignment on social and market rules 
in road transport is also needed; the transition towards smart tachograph technology has been a first 

74 

 
 
 
step. 

On  rail  transport,  half  of  the  railway  infrastructure  remains  unsafe,  outdated  and  unreliable,  and 
cannot enable suitable international transit. Bosnia and Herzegovina still needs to fully align the Law 
on  railways  with  the  fourth  EU  railway  package,  notably  to  open  the  railway  market,  separate 
infrastructure  management  and 
independence  and 
administrative  capacity  of  the  regulatory  body,  the  safety  authority  and  the  investigation  body.  The 
country  still  needs  to  adopt  a  multiannual  maintenance  plan  for  the  entire  network.  Bosnia  and 
Herzegovina should use modern systems in line with EU rail interoperability and safety standards to 
build  or  rebuild  railway  sections.  At  entity  level,  railway  legislation  aiming  to  provide  non-
discriminatory access to the network needs to be brought in line with the EU acquis. No progress was 
made on negotiating protocols on railway border crossing procedures with Croatia. 

transport  operations,  and  strengthen 

the 

Bosnia  and  Herzegovina  needs  to  prepare and adopt legislation  on  maritime transport  in line  with 
the EU acquis, enabling the country to become a maritime shipping flag holder. On inland waterway 
transport, Bosnia and Herzegovina should adopt State-level legislation in line with the EU acquis to 
ensure the safety of navigation and maintenance of inland waterways. 

The  2009  Law  on  civil  aviation  still  needs  to  be  aligned  with  the  requirements  of  the  European 
Common  Aviation  Area  Agreement  (ECAA).  The  authorities  should  continue  efforts  to  address  the 
chronic lack of adequately trained and qualified staff within the Bosnia and Herzegovina Directorate 
of Civil Aviation (BHDCA), which increases the risks of safety oversight.  

Bosnia  and  Herzegovina  has  not  started  to  develop  its  policy,  institutions,  legal  and  regulatory 
framework on multimodal transport. Bosnia and Herzegovina has not yet aligned with the EU acquis 
on  combined  transport.  No  progress  was  made  regarding  EU  passenger  rights,  although  the 
legislation on air passenger rights is largely aligned with EU acquis. 

Chapter 15: Energy 

EU  energy  policy  covers  energy  supply,  infrastructure,  the  internal  energy  market,  consumers, 
renewable  energy,  energy  efficiency,  nuclear  energy  and  nuclear  safety,  radiation  protection,  and 
nuclear safeguards. 

No progress was made in establishing a compliant legal framework governing the security of supply 
in electricity which needs to be redirected from coal to renewables. No progress was made in the gas 
and oil sectors to align the legislative framework with the EU acquis, including on drafting legislation 
on emergency oil stocks.  

Although only 3% of the energy supply comes from natural gas, the country remains fully dependent 
on one single source from Russia. Full implementation of the Regulation on the security of gas supply 
is pending, including development of risk assessment, preventive action plan and emergency plan, as 
per  Energy  Community  acquis.  The  country  still  needs  to  adopt  and  enforce  a  new  law  for  the 
unbundling, certification, and operation of the gas transmission system operator in line with the third 
energy package. 

To ensure the opening of the  internal energy market, Bosnia and Herzegovina still needs to adopt 
outstanding  electricity  and  gas  legislation.  Bosnia  and  Herzegovina  is  late  in  aligning  with  and 
implementing  the  electricity  integration  package,  adopted  in  the  Energy  Community,  which  is  a 
precondition for market integration. This, among others, includes unbundling and certification of the 
transmission  system  operator,  appointing  the  nominated  electricity  market  operator  (NEMO)  and 
establishing the  power  exchange  and  day-ahead and intra-day  markets.  A  new  law  on  the  regulator, 
electricity  transmission  and  the  electricity  market,  aimed  at  aligning  with  the  electricity  integration 
package,  is  yet  to  be  adopted.  The  entity-level  laws  need  to  be  fully  harmonised  with  this  legal 
framework and be implemented. For electricity, the independence of regulatory authorities at all levels 
is still hampered by political interference.  

For  gas,  the  wholesale  and  retail  market  remains  closed  without  adequate  regulatory  oversight  and 
lacks transparency, particularly on setting prices for end consumers. 

75 

 
 
A  State-level  legal  framework  is  still  lacking  on  renewable  energy,  although  both  entities  and  the 
Brčko District continue to prepare implementing legislation. Both entities and the Brčko District need 
to launch renewable energy support scheme auctions. An electronic register on issuance, cancellation 
and trade of guarantees of origin (GOs) is in place in the Republika Srpska entity, while the Federation 
entity is still conducting procurement procedures to introduce it.  

Despite  large  capacity,  there  are  only  three  wind  parks  in  place  and  an  increasing  number  of  solar 
plants. Hydropower planning is still being carried out without complying with the Espoo Convention. 
Despite  existing  legal  obligations,  environmental  impact  assessments  are  still  not  consistently 
prepared,  which  lead  to  protests  and  court  challenges.  (See  Chapter  27  –  Environment  and  climate 
change) 

No  progress  was  made  in  aligning  legislation  on  energy  efficiency  with  EU  acquis,  including  the 
energy performance of buildings. Incentive measures must be gender- and class-balanced.  

In  the  area  of  governance,  a  national  energy  and  climate  plan  (NECP),  in  line  with  the  Energy 
Community 2030 energy and climate targets, is yet to be finalised and adopted.  

Bosnia  and  Herzegovina  made  no  progress  on  nuclear  energy,  nuclear  safety  and  radiation 
protection.  The  country  is  yet  to  finalise  the  outstanding  actions  required  to  join  the  European 
Community Urgent Radiological Information Exchange (ECURIE). On nuclear safeguards, upon EU 
accession  the  existing  systems  of  accountancy  and  control  of  nuclear  materials  would  need  to  be 
adapted in line with the safeguard provisions of Chapter 7 of the Euratom Treaty. 

Chapter 21: Trans-European Networks 

The EU promotes trans-European networks (TENs) in the areas of transport, telecommunications and 
energy to strengthen the internal market and contribute to growth and employment. 

On  transport  networks,  Bosnia  and  Herzegovina  should  accelerate  the  implementation  of 
connectivity reform measures and continue adopting multiannual maintenance plans for the entire road 
and  rail  core  networks.  More  efforts  are  required  to  strengthen  mutual  relations  and  cross-border 
cooperation with neighbouring countries on border crossing agreements. 

Bosnia and Herzegovina should continue with the development of the planned extension of the core 
trans-European transport networks (TEN-T) and trans-European networks for energy (TEN-E) in line 
with the priorities identified in the Economic and Investment Plan for the Western Balkans, the Green 
Agenda and the Transport Community’s five-year rolling work plan.  

The single project pipeline for priority TEN-T connectivity projects has not been updated since 2019, 
which  puts  into  questions  its  continued  relevance.  In  relation  to  the  Corridor  Vc  motorway,  works 
have continued across six sections, and one sub-section is pending opening (Poprikuše – Nemila). The 
Federation entity still needs to close the financing gap to complete the construction of the motorway. 
As  regards  the  two  infrastructural  investments  located  in  the  Republika  Srpska  entity  (Corridor  Vc 
road  and  rail),  the  Commission  will  proceed  with  the  signature  of  the  contribution  agreements  only 
after  the  end  of  the  political  crisis,  with  the  return  to  the  full  functioning  of  State  institutions.  An 
agreement  is  still  pending  with  Croatia  on  the  category  of  the  Svilaj  border  crossing.  The  Gradiška 
border crossing is awaiting completion of the access expressway on Croatian territory. 

On  rail  infrastructure,  design  studies  for  the  Doboj  –  Rasputnica  –  Miljacka  railway  section  were 
finalised. Effort is needed to accelerate progress on the rail core network where investments continue 
to be limited. Rehabilitation activities are ongoing for the navigability of the Sava river, including in 
the Brčko Port, while tendering for the demining activities is yet to be launched.  

On energy networks, Bosnia and Herzegovina needs to align with the revised TEN-E Regulation, as 
per Energy Community requirements, and should finalise its single project pipeline to also include the 
energy sector. Bosnia and Herzegovina still needs to develop its regional electricity connections in line 
with  the  Green  Agenda  for  the  Western  Balkans,  the  Central  and  South-Eastern  Europe  Energy 
Connectivity  (CESEC)  action  plan  on  electricity  and  renewable  energy  and  the  Projects  of  Energy 
Community Interest (PECI) involving Bosnia and Herzegovina, in particular increasing the capacity of 

76 

 
 
the existing 220 kV interconnection with Montenegro (220 kV overhead line Trebinje – Perućica), and 
the Trans Balkan Corridor: double overhead line 400 kV Bajina Bašta (Serbia) – Višegrad (Bosnia and 
Herzegovina) / Pljevlja (Montenegro). 

Chapter 27: Environment and climate change 

The EU promotes strong climate action, sustainable development and protection of the environment. 
EU  rules  contain  provisions  addressing  climate  change,  water  and  air  quality,  waste  management, 
nature protection, industrial pollution, chemicals, noise and civil protection. 

Environment 

Horizontal legislation is aligned with the EU acquis to a limited extent. No progress was made in this 
sector,  including  with  implementing  countrywide  environmental  approximation  and  environmental 
protection strategies, aligning with horizontal directives (on environmental impact assessment  – EIA, 
strategic  environmental  assessment  –  SEA,  environmental  liability,  infrastructure  for  spatial 
information – INSPIRE, and environmental crime), and strengthening access to information and public 
participation  in  decision-making  in  line  with  obligations  under  the  Espoo  Convention.  Bosnia  and 
Herzegovina  should  ensure  the  quality  of  the  preparation  and  implementation  of  environmental 
investments – including the transparency of procedures, compliance with EIA/SEA and other elements 
of the horizontal acquis – notably to ensure that there is an institutional structure in place to deliver 
coordinated, strategic planning for environmental investments. The country still needs to  formalise a 
procedure  for  merit-based,  transparent  appointment  of  a  focal  point  for  Bosnia  and  Herzegovina  to 
ensure its undisputed representation in environmental conventions to which the country is a signatory.  

On  air  quality,  Bosnia  and  Herzegovina  still  needs  to  develop  a  countrywide  strategy  to 
systematically and efficiently combat air pollution. 

Bosnia and Herzegovina still needs to adopt a countrywide strategy for waste management, focusing 
on  circular  economy,  the  EU  plastic  strategy  and  the  Directive  on  single-use  plastics.  Bosnia  and 
Herzegovina still needs to align with the Landfill Directive as well as with the EU acquis on sewage 
sludge,  batteries,  packaging,  polychlorinated  biphenyls  /  polychlorinated  terphenyls  and  end-of-life 
vehicles. 

On water quality, a consistent and harmonised countrywide strategy and sustainable investment plan 
on  water  management  and  urban  wastewater  management  are  still  missing.  There  is  no  State-level 
legislation  that  regulates  water  management,  and  alignment  with  the  EU  acquis  is  very  fragmented. 
Specific  plans  for  implementing  EU  legislation  on  drinking  water,  urban  wastewater  and  flood  risk 
management  still  need  to  be  adopted.  Bosnia  and  Herzegovina  still  needs  to  adopt  a  roof  report  on 
river basin management plans, on flood hazards and risks plans, as well as a revised action plan for 
flood protection and river management. 

On  nature  protection,  further  alignment  with  the  EU  acquis  should  take  place  in  a  coordinated 
manner across the country. The country still needs to adopt the list of potential Natura 2000 sites and 
implementing  legislation  and  set  up  a  biodiversity  monitoring  system.  The  Convention  on 
international  trade  in  endangered  species  of  wild  fauna  and  flora  (CITES)  needs  to  be  fully 
implemented. Bosnia and Herzegovina should prepare legislation to ratify and become a party to the 
Nagoya Protocol to the 1992 Convention on biological diversity. 

Regarding  industrial  pollution  control  and  risk  management,  the  pollutants  release  and  transfer 
register (PRTR) protocol to the Aarhus Convention still needs to be ratified. Bosnia and Herzegovina 
needs to ensure the implementation of its national emissions reduction plan (NERP). The country still 
needs to align with the EU directives on industrial emissions, eco-labelling and eco-management and 
audit  schemes,  as  well  as  with  the  Seveso  III  Directive  on  the  control  of  major-accident  hazards 
involving dangerous substances. 

On chemicals, the country needs to ensure alignment with EU regulations (on registration, evaluation, 
authorisation  and  restriction  of  chemicals  –  REACH,  on  classification,  labelling  and  packaging  of 
substances and mixtures – CLP, and on biocidal products – BPR), and appoint the responsible bodies. 

77 

 
 
Bosnia  and  Herzegovina  still  needs  to  implement  the  Rotterdam  Convention  on  trade  of  hazardous 
chemicals, to which it is a party. There has been no progress in acceding to the Minamata Convention 
on Mercury. 

Significant further efforts are still needed to align with the EU acquis on environmental noise. 

On  civil  protection,  Bosnia  and  Herzegovina  actively  participates  in  the  Union  Civil  Protection 
Mechanism  (UCPM)  activities.  The  country  should  establish  trans-European  services  for  telematics 
between  administrations  (TESTA)  as  a  precondition  for  connecting  to  the  common  emergency 
communication  and  information  system  (CECIS).  Adequate  early  warning  systems  and  risk-based 
planning  are  needed  for  a  more  proactive  approach  to  disaster  risk  reduction  across  the  country. 
Bosnia  and  Herzegovina  still  has  to  adopt  legislation  to  introduce  the  single  European  emergency 
number  112  across  the  whole  country.  Both  entities  and  the  Brčko  District  should  afterwards 
implement such a law. 

Climate change 

No  progress  was  made  in  the  area  of  climate  change  during  the  reporting  period.  Bosnia  and 
Herzegovina should urgently step up its efforts to align with the EU climate acquis. 

Bosnia and Herzegovina needs to adopt a State-level climate law and a countrywide long-term climate 
strategy consistent with the 2050 climate neutrality objective. The country should urgently align with 
and implement the EU acquis on monitoring, reporting, verification and accreditation (MRVA) for the 
purpose of introducing carbon pricing and aligning with the EU emission trading system (ETS) in its 
full scope. 

Bosnia and Herzegovina needs to finalise and adopt its national energy and climate plan (NECP). The 
country needs to step up the implementation of its revised nationally determined contribution (NDC) 
and  submit  a  new  and  ambitious  NDC  to  the  United  Nations  Framework  Convention  on  Climate 
Change (UNFCCC) in line with the efforts to limit global warming to 1.5°C. Furthermore, the country 
should submit their first biennial transparency report without delay. 

Bosnia  and  Herzegovina  urgently  needs to  significantly  strengthen  its  administrative  capacity  in  the 
sector in order to make progress in aligning with the EU climate acquis. Awareness-raising activities 
should be strengthened. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

This  cluster  covers:  agriculture  and  rural  development  (Chapter  11);  food  safety,  veterinary  and 
phytosanitary  policy  (Chapter  12);  fisheries  and  aquaculture  (Chapter  13);  regional  policy  & 
coordination  of  structural  instruments  (Chapter  22);  and  financial  &  budgetary  provisions  (Chapter 
33). 

Chapter 11: Agriculture and rural development 

The EU’s common agricultural policy supports farmers and ensures Europe’s food security. It helps 
tackle climate change and the sustainable management of national resources; maintains rural areas 
and landscapes across the EU; and keeps the rural economy alive by promoting jobs in farming, agri-
food industries and associated sectors. This requires strong management and control systems. There 
are also common EU rules for marketing standards, quality policy and organic farming. 

On horizontal issues, there was no progress in setting up the administrative structures required for the 
common  agricultural  policy  (CAP),  including  a  paying  agency,  and  in  developing  elements  of  an 
integrated  administration  and  control  system  (IACS)  or  a  farm  sustainability  data  network  (FSDN). 
The  country  needs  to  substantially  improve  the  data  collection  and  processing  system  for  planning 
agricultural and rural development policies, and ensure its implementation, monitoring and reporting. 
The implementation of the ‘Strategic plan for rural development 2023-2027 – framework document’, 
endorsed  in  October  2024,  has  not  advanced.  The  country  still  needs  to  develop  a  multiannual 
countrywide  strategy  on  agriculture  and  rural  development,  improve  sector  coordination  and 

78 

 
 
 
strengthen administrative capacity at all levels of government. Bosnia and Herzegovina still needs to 
set up the necessary institutional structures to benefit from the Instrument for Pre-accession Assistance 
for Rural Development (IPARD). It should also develop a farm advisory service. 

As regards agricultural markets - common market organisation (CMO), there was no progress in 
aligning the regulatory framework with the EU  acquis. Bosnia and Herzegovina still needs to adopt 
implementing legislation to the State-level Law on the organisation of the market of wine and set up a 
register of grapes and wine producers and a vineyard register.  

Bosnia  and  Herzegovina  made  no  progress  in  harmonising  rural  development  programmes  and 
support measures. No progress was made to improve and align the legal framework on quality policy 
with the EU acquis and ensure clarity in the distribution of competences. There was also no progress 
in adopting a State-level Law on organic farming and production, in line with the EU acquis, and a 
regulatory framework harmonised across all levels of government. 

On  the  fight  against  corruption  measures,  the  general  anti-corruption  legal  framework  equally 
applies to agriculture, with no specific provisions in place for the sector yet. 

Chapter 12: Food safety, veterinary and phytosanitary policy 

The EU food acquis including hygiene rules for foodstuff production ensure a high level of food and 
feed safety, and a high level of protection of consumers’ interests. Animal health and welfare, and the 
safety  of  food  of animal  origin, are safeguarded  together  with  the  quality  of  seeds,  plant  protection 
material, the protection against harmful organisms and animal nutrition. 

On general food safety, food safety rules and specific rules for feed, Bosnia and Herzegovina has yet 
to  ensure  compliance  with  public  and  animal  health  requirements,  in  particular  related  to  official 
controls for the export of beef, sheep and goat meat to the EU, and to ensure reliable certified animal 
health statements of the export certificates. A reliable central database for animals and official controls 
is not yet in place, and the surveillance of notifiable diseases is not regularly implemented. A system 
of national reference laboratories is still not in place, and existing laboratories are still not accredited 
to detect notifiable diseases. 

Improving the  official controls  system remains  crucial,  particularly  for  animal identification  and the 
registration of holdings to ensure data reliability. Alignment has yet to be ensured for the surveillance 
of  notifiable  diseases,  particularly  for  early  detection  system  and  raising  awareness  among  farmers. 
The  inter-laboratory  comparative  test  system  is  still  not  set  up,  nor  is  the  system  of  reference 
laboratories  for  food  and  feed  analysis,  official  controls  for  hygiene,  and  animal  and  plant  health. 
Bosnia and Herzegovina has yet to fulfil the criteria for the export of table eggs to the EU, or  fully 
implement its updated Salmonella control plan. 

The alignment with the EU acquis of the laws on food (2004) and veterinary medicine (2002) remains 
low. Further work is necessary to prepare and adopt laws on official controls, on animal health and on 
animal welfare. Additional efforts are needed to implement the hygiene package. 

On  veterinary  policy,  the  country  has  yet  to  substantially  strengthen  the  control,  prevention  and 
eradication of transmissible animal diseases, as well as to improve the monitoring and surveillance of 
brucellosis and rabies, which are not yet eradicated. Further efforts are needed to improve coordination 
for  the  management  of  animal  disease  outbreaks.  The  central  system  for  management  of  animal 
disease  notification  and  outbreak  information,  as  well  as  the  central  animal  identification  and 
registration systems for sheep, goats, pigs and horses, are yet to be aligned with the EU acquis. 

On the placing on the market of food, feed and animal by-products, Bosnia and Herzegovina has 
yet to align its food and feed control system with the EU acquis. Further reforms are still necessary at 
all levels of government, particularly for official control authorities and laboratories. There is yet no 
countrywide strategy nor effective system for managing animal by-products. On food safety rules and 
its specific rules for feed, no progress was reported. 

On phytosanitary policy, the country has yet to adopt key national laws, notably on plant health and 
on official controls. The adoption of countrywide programmes for surveillance of quarantine pests for 

79 

 
 
all agriculture crops and forests remains important, not only for potatoes which are exported to the EU. 
The  country  has  yet  to  align  its  national  legislation  with  the  EU  acquis  on  the  rules  for  the 
authorisation of plant protection products in commercial form and for their placing on the market, use 
and  control.  Reforms  are  still  needed  for  Bosnia  and  Herzegovina  to  issue  plant  passports,  to  adopt 
OECD  seed  schemes  and  to  set  up  national  reference  laboratories  providing  phytosanitary  checks. 
Surveys, early detection and eradication of pests must be strengthened. 

The  alignment  with  the  EU  acquis  on  genetically  modified  organisms  (GMOs)  remains  low. 
Competent authorities at all levels of government need to be strengthened and a reference laboratory is 
yet to be set up to test, control and monitor the presence of GMOs in food and feed. 

Chapter 13: Fisheries and aquaculture 

The common fisheries policy lays down rules on fisheries management, protects living resources of the 
sea and limits the environmental impact of fisheries. This includes setting catch quotas, managing fleet 
capacity, rules on control and inspection, rules on markets and aquaculture and support for fisheries 
and coastal communities. Further, it promotes a sustainable aquaculture. 

Bosnia and Herzegovina needs to develop a countrywide policy framework (strategy) and State-level 
legislation on fisheries and aquaculture to prepare for the EU’s common fisheries policy (CFP). The 
country  needs  to  substantially  strengthen  its  institutional  capacity  and  administrative  structures  to 
support small-scale and/or inland fisheries and aquaculture. 

No progress was made on resource and fleet management. Bosnia and Herzegovina still needs to set 
up a fleet register and a system for management and control of fishing activities in line with the CFP. 
On inspection and control, the country still needs to improve and harmonise the data on catches and 
landings per type of fishery and improve methodologies and planning for data collection. Bosnia and 
Herzegovina has yet to align structural actions and State aid measures with the EU acquis. 

On market policy, Bosnia and Herzegovina still needs to establish most of the provisions of the EU 
acquis on the common market organisation in fishery and aquaculture products, among others setting 
up a framework to recognise producers’ organisations. 

Regarding  international  agreements,  Bosnia  and  Herzegovina  continues  to  cooperate  with  the 
General  Fisheries  Commission  for  the  Mediterranean  (GFCM)  as  part  of  the  Food  and  Agriculture 
Organization (FAO), to which it is a cooperating non-contracting party. 

There was no progress on aquaculture or on maritime spatial planning in the reporting period. 

Chapter 22: Regional policy and coordination of structural instruments 

Regional policy is the EU’s main tool for reducing regional disparities and investing in sustainable 
and  inclusive  socio-economic  growth.  It  operates  through  ‘shared  management’  between  the 
Commission  and  EU  Member  States.  The  implementation  of  cohesion  policy  programmes  requires 
appropriate administrative capacity on programme and project level, the establishment of systems of 
sound financial management and controls and also the fulfilment of other EU acquis elements such as 
environmental or public procurement legislation. 

On the legislative framework, in the areas underpinning regional development (see Chapters 5, 8, 15, 
19, 27, 32), Bosnia and Herzegovina needs to increase alignment with the EU  acquis and standards, 
and  to  commit  to  regional  development  reforms,  including  definition  of  the  planning  regions  (e.g. 
NUTS) and their powers, statistical profile and financing. The country needs to adopt a countrywide 
strategy to guide the process. 

The institutional framework for the management of EU funds is not yet in place. The country has not 
yet appointed a national IPA coordinator (NIPAC) for IPA III to steer the programming and the use of 
the EU funds, and to drive reforms under this chapter. The absence of a NIPAC may be considered as 
a fundamental weakness in the management and control system, especially under shared management. 
There is no countrywide strategic framework guiding the preparations for the structural and cohesion 
funds  and  regional  development.  The  coordination  is  challenging  due  to  institutional  and 

80 

 
 
administrative  fragmentation  and  lack  of  quality  statistical  and  administrative  data  to  support  a 
common strategic vision. 

The administrative capacity for programming and managing EU pre-accession funds remains weak 
due to delays in public administration reform and the absence of efficient IPA structures including a 
NIPAC, with limited understanding of the EU regional and cohesion policy. 

On  programming,  Bosnia  and  Herzegovina  completed  the  programming  of  the  remaining  IPA  III 
funds  (allocations  for  2025-2027).  A  Reform  Agenda  under  the  Reforms  and  Growth  Facility  was 
submitted  to  the  Commission  for  agreement  in  September  2025.  Bosnia  and  Herzegovina  needs  to 
improve  the  planning  of  capital  investments  across  the  country  and  ensure  that  an  up-to-date  single 
project  pipeline  guides  EU  and  domestic  investments  in  a  coherent  way,  covering  priority  sectors, 
based on a sound, transparent and inclusive methodology. The country continues to gain experience in 
programming  and  implementation  of  regional  policy  through  participation  in  nine  EU  cooperation 
programmes.  Bosnia  and  Herzegovina  participates  in  three  cross-border  programmes,  three 
transnational  programmes  and  three  inter-regional  programmes.  In  2025,  Bosnia  and  Herzegovina 
chaired the EU Strategy for the Danube Region (EUSDR). In the 2021-2027 period, more applicants 
from Bosnia and Herzegovina have expressed interest to join territorial cooperation programmes. 

Regarding  monitoring  and  evaluation,  Bosnia  and  Herzegovina  needs  to  significantly  improve  the 
quality  of  monitoring  and  reporting  on  the  use  of  the  EU  funds,  and  to  ensure  a  higher  rate  of 
implementation  of  recommendations  from  the  SAA  process  and  the  IPA  monitoring  committee.  In 
absence of a NIPAC, the IPA monitoring committee has not taken place since May 2022. 

On the financial management, control and audit system, Bosnia and Herzegovina needs to put in 
place a roadmap for establishing the management and control systems for the structural and cohesion 
instruments and ensure their implementation. 

On  fight  against  corruption,  anti-corruption  and  anti-fraud  measures  need  to  be  put  in  place  and 
enforced in close coordination among anti-corruption bodies at all levels of government.  

Chapter 33: Financial and budgetary provisions 

This  chapter  covers  the  rules  governing  the  funding  of  the  EU  budget  (‘own  resources’).  These 
resources  mainly  consist  of:  (i)  contributions  based  on  the  gross  national  income  of  each  Member 
State; (ii) customs duties; (iii) the non-recycled plastic resource and (iv) a resource based on value 
added tax. Member States must have the appropriate administrative capacity to adequately coordinate 
and ensure the correct calculation, collection, payment and control of own resources. 

There was no or limited progress in the underlying policy areas that indirectly affect the own-resources 
system.  (For  progress  in  these  areas,  see  Chapters  16  –  Taxation,  17  –  Economic  and  monetary 
policy, 18 – Statistics, 29 – Customs union, and 32 – Financial control)  

There  was  limited  progress  in  improving  the  capacity  of  the  Indirect  Tax  Authority  (ITA)  and  in 
implementing  an  accounting  system  for  customs  duties  to  distinguish  between  recovered  and 
outstanding  debts,  in  line  with  the  EU’s  traditional  own-resources  accounting.  ITA  now  allows 
uploading files from the customs and other subsystems into the single account ledger. The VAT law is 
still to be aligned with the EU acquis, notably on special schemes and exceptions. 

On the gross national income (GNI) resource, Bosnia and Herzegovina makes use of the definitions 
and accounting rules of ESA 2010 to compile its GNI. Setting up a countrywide accounts system is a 
longstanding priority that should be tackled with urgency, notably by adopting a master plan to that 
aim, in line with ESA 2010.  

In terms of administrative infrastructure, there was no progress in providing sufficient human and 
administrative  resources  to  ensure  the  full  and  correct  application  of  relevant  rules  in  line  with  EU 
acquis on payments into the EU budget. Administrative structures and implementing rules need to be 
better  coordinated  to  ensure  correct  forecasting,  calculation,  accounting,  collection,  payment  and 
monitoring of own resources. 

81 

 
 
CLUSTER 6: EXTERNAL RELATIONS 

This cluster covers: external relations (Chapter 30); foreign, security and defence policy (Chapter 31). 

Chapter 30: External relations 

The EU has a common commercial policy towards third countries, based on multilateral and bilateral 
agreements and autonomous measures. There are also EU rules on humanitarian aid and development 
policy. 

On the common commercial policy, Bosnia and Herzegovina needs to conclude negotiations for its 
accession  to  the  WTO.  Bosnia  and  Herzegovina  needs  to  continue  implementing  the  CEFTA 
additional  protocol  5  on  trade  facilitation  and  CEFTA  additional  protocol  6  on  trade  in  services. 
Bosnia  and  Herzegovina  should  adopt  the  additional  protocol  7  on  dispute  settlement,  thus 
contributing to implementing the 2025-2028 Common Regional Market action plan. 

Bosnia  and  Herzegovina  applies  export  controls  on  dual-use  goods  according  with  its  2003 
legislation,  which  needs  to  be  aligned  with the  relevant  EU  acquis,  namely  the  2021  Regulation  on 
export controls and its annual updates as regards the list of dual-use items. Bosnia and Herzegovina 
has yet to align with the EU acquis on screening of foreign direct investments.  

As  regards  bilateral  agreements  with  third  countries,  Bosnia  and  Herzegovina  needs  to  further 
strengthen its administrative capacity and improve cooperation and coordination among all levels of 
government  to  ensure  consistency  of  implementation  and  enforcement.  The  country  has  37  bilateral 
investment treaties in force, including 18 with EU Member States. 

There was no progress in the areas of  development policy and humanitarian aid. The country is a 
recipient  of  aid  programmes  and  has  so  far  provided  humanitarian  aid  only  ad hoc.  Bosnia  and 
Herzegovina  is  encouraged  to  establish  a  legal  framework,  according  to  EU  policies  and  principles, 
and to build dedicated administrative structures. 

Chapter 31: Foreign, security and defence policy 

Member States must be able to conduct political dialogue under the EU foreign, security and defence 
policy, align with EU statements, take part in EU actions, and apply agreed sanctions and restrictive 
measures. 

The  political  dialogue  between the  EU  and  Bosnia  and  Herzegovina  on  foreign  and  security  policy 
issues continued, including at high level. In April 2025, Bosnia and Herzegovina participated in the 
11th  EU  –  Western  Balkans  meeting  of  political  directors  on  common  foreign  and  security  policy 
(CFSP) and hosted the 12th meeting in Sarajevo in October 2025. 

The country’s foreign policy strategy expired in 2023 and has not been replaced. Its implementation 
was  affected  by  frequent  divergent  positions  within  the  Presidency,  also  in  relation  to  domestic 
developments,  Russia’s  war  of  aggression  against  Ukraine,  the  Middle  East  or  the  UN  General 
Assembly resolutions.  

In August 2025, Bosnia and Herzegovina appointed a political director and a European correspondent 
within the Ministry of Foreign Affairs. Rules and practices based on ethnic quotas in appointing the 
diplomatic  and  consular  staff  have  a  negative  impact  on  the  capacity  of  the  ministry,  adversely 
affecting the country’s foreign policy objectives. 

Bosnia and  Herzegovina  has  maintained full  alignment  with  the  EU  common foreign and  security 
policy  (statements  by  the  High  Representative  on  behalf  of  the  EU  and  Council  decisions  on 
sanctions), signalling its clear commitment to the EU path. 

Bosnia  and  Herzegovina  aligned  with  the  EU  positions  at  the  United  Nations,  the  OSCE  and  the 
Council of Europe on Russia’s war of aggression against Ukraine, including co-sponsoring the UNGA 
resolution  on  “Advancing  a  comprehensive, just  and lasting  peace  in  Ukraine”, marking  three  years 
since  Russia’s  full-scale  invasion  of  Ukraine.  However,  the  Republika  Srpska  entity  authorities 

82 

 
 
 
continue to maintain frequent contacts with Russia at the highest levels.  

Alignment  with  EU  restrictive  measures  remains  politically  contested  as  the  member  of  the 
Presidency  elected  from  the  Republika  Srpska  entity  advocated  for  a  neutral  stance  and  the  former 
Republika Srpska entity President openly supported Russia’s war of aggression against Ukraine. This 
resulted in significant hindrances to their implementation by those ministries controlled by the SNSD 
party, including not banning flights from Russia or the broadcast of  Russian State-sponsored media. 
SNSD-controlled ministries and bodies at State level have also started stepping up cooperation with 
Russian  counterparts.  Notably,  in  September  2025  the  Institute  of  Metrology  and  the  Institute  for 
Standardisation signed memorandums of understanding with  Rosstandart, an EU-sanctioned Russian 
entity. Bosnia and Herzegovina should continue to strengthen its capacity to implement and enforce 
international  restrictive  measures,  including  EU  sanctions  it  has  aligned  to,  also  by  introducing 
legislation in line with the relevant EU regulations.  

Regarding  cooperation  with  international  organisations,  Bosnia  and  Herzegovina  is  an  active 
member of the major international organisations, including the United Nations, the Council of Europe 
and  the  OSCE.  The  country  participates  in  NATO’s  membership  action  plan  since  2019.  An  action 
plan on women, peace and security remains pending adoption since 2023.  

Bosnia and Herzegovina maintains a bilateral immunity agreement with the United States, granting US 
citizens  exemptions  from  the  jurisdiction  of  the  International  Criminal  Court,  which  does  not 
comply  with  the  EU  common  positions  on  the  integrity  of  the  Rome  Statute  or  related  EU  guiding 
principles on bilateral immunity agreements. Alignment with the EU position is therefore needed. 

Bosnia and Herzegovina supports all EU measures and instruments for conflict prevention. 

On non-proliferation, Bosnia and Herzegovina is not yet a participating State of multilateral export 
control regimes. Alignment with the EU Common Position 2008/944 on arms export control is largely 
complete, with further work required on end user certificates. Bosnia and Herzegovina is a party to the 
Arms  Trade  Treaty,  but  is  still  to  establish  effective  measures  to  prevent  diversion  of  arms  and 
ammunition. Its non-proliferation strategy has expired.  

As  regards  the  control  of  small  arms  and  light  weapons,  Bosnia  and  Herzegovina  has  been 
implementing  the  new  regional  roadmap  2025-2030.  It  needs  to  harmonise  legislation  on  firearms 
within the country and further align it with the EU acquis. While some progress was achieved in the 
Brčko  District,  Posavina  Canton,  and  Canton  10,  the  country  still  needs  to  mark  and  register  all 
weapons of security forces into a single registry to ensure adequate traceability.  

In  terms  of  security  measures,  the  country  continued  to  implement  the  agreement  with  the  EU  on 
security  procedures  for  exchanging  and  protecting  classified  information.  The  national  security 
authority  (NSA)  under  the  Ministry  of  Security  is  understaffed  and  without  a  director  since  April 
2024.  The  Law  on  the  protection  of  classified  information  needs  to  be  further  aligned  with  EU 
standards, entrusting supervision to the NSA. 

On the common security and defence policy (CSDP), the Armed Forces of Bosnia and Herzegovina 
(AFBiH)  continued  to  contribute  to  the  EU  Training  Mission  (EUTM)  in  the  Central  African 
Republic.  Bosnia  and  Herzegovina  is  invited  to  further  step  up  participation  in  CSDP  military 
missions  and  operations.  Bosnia  and  Herzegovina  contributes  to  regional  cooperation  in  military 
medicine through the Balkan Medical Task Force (BMTF). 

Bosnia  and  Herzegovina  does  not  have  an  overall  assessment  or  a  policy  framework  for  addressing 
hybrid  threats  and  its  public  institutions  remain  vulnerable  to  serious  cyber-attacks.  Banja  Luka-
based  provider  M-tel  continued  to  carry  the  signal  of  the  RT  channel,  despite  Bosnia  and 
Herzegovina’s  alignment  with  relevant  EU  sanctions  on  Russia.  The  country  also  aligned  with  EU 
statements on hybrid and cyber. Bosnia and Herzegovina needs to make clear efforts on closing space 
for foreign information manipulation and interference (FIMI), including disinformation, taking actions 
towards building societal resilience against all forms of hybrid threats. 

83 

 
 
ANNEX I – RELATIONS BETWEEN THE EU AND BOSNIA AND HERZEGOVINA 

The  Stabilisation  and  Association  Agreement  (SAA)  entered  into  force  in  June  2015.  Policy 
dialogue in the joint bodies under the agreement continued. The SA Committee was held in September 
2024.  The  country also  participates in  the  economic and financial  dialogue  between the  EU  and  the 
Western Balkans and Türkiye; joint recommendations were adopted at ministerial level in May 2025.  

Under  the  SAA  and  its  interim  agreement  (which  commenced  application  in  2008)  there  has  been 
progressive trade liberalisation and mutual duty-free access for most goods. Since 2000, Bosnia and 
Herzegovina  has  also  been  benefiting  from  autonomous  trade  measures.  The  country  joined  the 
Central  European  Free  Trade  Agreement  (CEFTA)  in  2007.  The  EU  is  Bosnia  and  Herzegovina’s 
main trading partner, accounting for 64% of its trade in goods (73% of exports and 59% of imports), 
for a total trade volume of EUR 15.2 billion in 2024.  

Bosnia  and  Herzegovina  applied  for  EU  membership  in  February  2016,  and  in  May  2019  the 
Commission  adopted  its  Opinion  setting  out  14  key  priorities  in  the  areas  of  democracy  and 
functionality,  rule  of  law,  fundamental  rights,  and  public  administration  reform.  In  December  2022, 
the European Council granted Bosnia and Herzegovina candidate country status on the understanding 
that a number of steps are taken, as outlined in the October 2022 Commission recommendation. The 
European  Council  decided  on  21 March  2024  to  open  accession  negotiations  with  Bosnia  and 
Herzegovina.  The  European  Council  invited  the  Commission  to  prepare  the  negotiating  framework 
with a view to its adoption by the Council the moment all relevant steps set out in the Commission’s 
recommendation of October 2022 are taken. 

Visa liberalisation for citizens of Bosnia and Herzegovina travelling to the Schengen area has been in 
force  since  December  2010,  and  a  readmission  agreement  has  been  in  force  since  2008.  The 
Commission’s seventh report under the visa suspension mechanism in December 2024 concluded that 
the  country  continues  to  meet  the  visa  liberalisation  benchmarks.  In  April  2025  the  Commission 
proposed  that  countries  that  have  been  granted  the  status  of  candidate  states,  including  Bosnia  and 
Herzegovina are designated as safe countries of origin at EU level. 

Bosnia  and  Herzegovina  fully  aligns  with  EU  common  foreign  and  security  policy  positions  and 
declarations.  The country continued to participate in EU crisis management missions and operations 
under  the  common  security  and  defence  policy.  The  EUFOR  Althea  military  operation  remained 
deployed in the country, retaining deterrence capacity to support a safe and secure environment. The 
UN Security Council has extended EUFOR Althea’s executive mandate until November 2026.  

The  Armed  Forces  of  Bosnia  and  Herzegovina  (AFBiH)  benefit  from  EUR 20  million  in  assistance 
from  the  European  Peace  Facility  (EPF),  which  increases  their  capacity  to  participate  in  CSDP 
military missions and operations.  Their  demining  battalion,  which is  essential for  achieving  a mine-
free  Bosnia  and  Herzegovina,  received  EPF  support  to  purchase  vehicles  and  metal  detectors.  The 
AFBiH  also  received  EPF  support  in  chemical,  biological,  radiological  and  nuclear  protection,  and 
take part in the EUR 6 million EPF Balkan Medical Task Force assistance measure. 

The EU is the main donor of financial assistance to Bosnia and Herzegovina, with EUR 539.6 million 
under  the  Instrument  for  Pre-accession  (IPA)  II  2014-2020  and  EUR  357.3  million  under  IPA  III 
2021-2024.  The  fundamentals  of  EU  accession  –  good  governance,  rule  of  law  and  human  rights  – 
receive 43.97% of the IPA III assistance, while 56.03% target sustainable and inclusive growth.  EU 
assistance  also  includes  funding  for  civil  society  and  co-financing  for  participation  in  Union 
programmes.  

Since  2009,  Bosnia  and  Herzegovina  also  received  EU  assistance  of  EUR 1.1  billion  through  the 
Western  Balkans  Investment  Framework  (WBIF),  leveraging  total  investments  of  EUR 6.7  billion. 
Overall,  under  the  Economic  and  Investment  Plan  (EIP),  Bosnia  and  Herzegovina  benefits  from 
EUR 1 billion of IPA funds, mobilising additional funding of EUR 2.9 billion for priority high-impact 
projects.  

Under  the  new  Reform  and  Growth  Facility,  Bosnia  and  Herzegovina  may  benefit  from  up  to 
EUR 976.6 million in loans and grants, following the 10% cuts enacted in July 2025. Disbursements 

84 

 
 
will  follow  delivery  on  reforms  as  set  out  in  the  Reform  Agenda  that  Bosnia  and  Herzegovina 
submitted to the Commission for agreement in September 2025.  

The  EU  provides  support  to  strengthen  Bosnia  and  Herzegovina’s  resilience  to  hybrid  threats, 
including cyber threats and foreign information manipulation and interference (FIMI). 

Bosnia  and  Herzegovina  participates  in  three  cross-border  cooperation  programmes,  as  well  as  in 
transnational cooperation for the Adriatic-Ionian region and the Danube region.  

Bosnia  and  Herzegovina  participates  in  eight  EU  programmes:  Fiscalis  2020,  Customs  2020, 
Competitiveness  of  enterprises  and  small  and  medium-sized  enterprises  programme  (COSME), 
Erasmus+, Creative Europe, Europe for Citizens, Horizon 2020 and the health programme 2014-2020. 
To enhance access to EU initiatives and funds and to support the development of national restoration 
plans, Bosnia and Herzegovina is participating as an observer in two pilot projects under the technical 
support instrument. 

85 

 
 
 
Note 

Note 

Annex II – Statistical data 
STATISTICAL DATA (as of 11/09/2025) 

Basic data 
Population (thousand) 
Total area of the country (km²) 

National accounts 
Gross domestic product (GDP) (million national currency) 
Gross domestic product (GDP) (million euro) 
GDP per capita (euro) 
GDP per capita (in purchasing power standards (PPS)) 
GDP per capita (in PPS), relative to the EU average (EU-27 = 100) 
Real GDP growth rate: change on previous year of GDP volume (%) 
Employment growth (national accounts data), relative to the previous year (%) 
Labour productivity growth: growth in GDP (in volume) per person employed, relative to the 
previous year (%) 
Unit labour cost growth, relative to the previous year (%) 
*3 year change (T/T-3) in the nominal unit labour cost growth index (2015 = 100) 
Labour productivity per person employed: GDP (in PPS) per person employed relative to EU 
average (EU-27 = 100) 
Gross value added by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
Final consumption expenditure, as a share of GDP (%) 
Gross fixed capital formation, as a share of GDP (%) 
Exports of goods and services, relative to GDP (%) 
Imports of goods and services, relative to GDP (%) 
Gross fixed capital formation by the general government sector, as a percentage of GDP (%) 

Business 
Industrial production volume index (2015 = 100) 
Number of active enterprises (number) 
Birth rate: number of enterprise births in the reference period (t) divided by the number of 
enterprises active in t (%) 
Death rate: number of enterprise deaths in the reference period (t) divided by the number of 
enterprises active in t (%) 

Note 

86 

2012 
3 839 i 
51 209 w 

2020 
: 
51 209 w 

2021 
: 
51 209 w 

2022 
3 464 pi 
51 209 w 

2023 
3 441 pi 
51 209 w 

2024 
3 417 pi 
51 209 w 

2012 
26 223 
13 408 
3 492 i 
8 000 
30.3 i 
-  0.8 
: 
: 

: 
: 
: 

7.3 
20.9 
4.7 
67.2 i 
108.2 
21.9 
32.4 
55.8 
: 

2012 
92.3 
: 
: 

: 

2020 
34 728 
17 756 
: 
10 100 
32.8 i 
-  3.0 
: 
: 

: 
: 
: 

7.0 
22.8 
5.4 
64.7 i 
92.7 
22.1 
34.6 
47.9 
: 

2020 
96.7 
: 
: 

: 

2021 
39 145 
20 015 
: 
: 
: 
7.4 
: 
: 

: 
: 
: 

6.0 
24.6 
5.1 
64.3 i 
87.5 
21.5 
42.8 
53.9 
: 

2021 
106.1 
78 877 
: 

2022 
45 618 
23 324 
6 733 pi 
: 
: 
4.2 
: 
: 

: 
: 
: 

5.7 
24.2 
5.2 
64.9 i 
86.1 
22.1 
48.3 
61.9 
: 

2022 
107.2 
81 436 
: 

2023 
49 920 
25 524 
7 417 pi 
: 
: 
2.0 
: 
: 

: 
: 
: 

5.5 
22.7 
5.4 
66.3 i 
87.5 
23.1 
43.9 
55.7 
: 

2023 
103.1 
84 211 
: 

: 

: 

: 

2024 
51 233 
26 195 
7 666 pi 
: 
: 
2.5 
: 
: 

: 
: 
: 

5.0 
20.6 
5.5 
68.8 i 
88.6 
24.7 
42.8 
57.2 
: 

2024 
: 
: 
: 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
People employed in SMEs as a share of all persons employed (within the non-financial 
business economy) (%) 
Value added by SMEs (in the non-financial business economy) (EUR million) 
Total value added (in the non-financial business economy) (EUR million) 

Inflation rate and house prices 
Consumer price index (CPI), change relative to the previous year (%) 

Balance of payments 
Balance of payments: current account total (million euro) 
Balance of payments current account: trade balance (million euro) 
Balance of payments current account: net services (million euro) 
Balance of payments current account: net balance for primary income (million euro) 
Balance of payments current account: net balance for secondary income (million euro) 
Net balance for primary and secondary income: of which government transfers (million euro) 
*3 year backward moving average of the current account balance relative to GDP (%) 
*Five year change in share of world exports of goods and services (%) 
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 
Foreign direct investment (FDI) abroad (million euro) 
of which FDI of the reporting economy in the EU-27 countries (million euro) 
Foreign direct investment (FDI) in the reporting economy (million euro) 
of which FDI of the EU-27 countries in the reporting economy (million euro) 
*Net international investment position, relative to GDP (%) 
Year on year rate of change in gross inflow of remittances (in national currency) from migrant 
workers (%) 

Public finance 
General government deficit / surplus, relative to GDP (%) 
General government gross debt relative to GDP (%) 
Total  government revenues, as a percentage of GDP (%) 
Total government expenditure, as a percentage of GDP (%) 

Financial indicators 
Gross external debt of the whole economy, relative to GDP (%) 
Gross external debt of the whole economy, relative to total exports (%) 
Money supply: M1 (banknotes, coins, overnight deposits, million euro) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
*Annual change in financial sector liabilities (%) 
*Private debt, consolidated, relative to GDP (%) 

: 

: 
: 

: 

: 
: 

2012 
2.1 w 

2020 
-  1.1 w 

2012 
- 1 158.7 
- 3 977.1 
833.8 
104.8 
1 879.7 
53.8 
-  8.0 
: 
258.8 w 
46.4 w 
: 
305.2 w 
153.7 w 
-  57.9 
: 

2012 
: 
: 
: 
: 

2012 
73.6 iw 
227.5 w 
3 140.7 w 
: 
: 
: 

2020 
-  501.3 
- 3 204.5 
836.3 
-  98.4 
1 965.3 
66.7 
-  2.9 
15.5 
357.4 w 
70.5 w 
32.1 w 
427.9 w 
267.7 w 
-  33.5 
7.3 i 

2020 
: 
: 
: 
: 

2020 
63.2 iw 
182.8 w 
7 697.6 w 
: 
: 
: 

1) 

1) 

Note 
2) 

Note 

3) 
3) 4) 
7) 
3) 4) 
5) 

4) 

Note 

Note 
4) 
4) 
6) 

87 

91.7 

91.8 

91.7 

7 175 i 
11 228 

2021 
2.0 w 

2021 
-  295.8 
- 3 666.0 
1 445.6 
-  255.2 
2 179.8 
47.2 
-  2.3 
22.9 
561.3 w 
76.9 w 
33.5 w 
638.1 w 
256.6 w 
-  28.9 
7.8 i 

2021 
: 
: 
: 
: 

8 709 i 
13 419 

2022 
14.0 w 

2022 
- 1 022.9 
- 5 206.6 
2 036.5 
-  305.6 
2 452.9 
20.2 
-  2.9 
16.6 
730.7 w 
74.9 w 
20.5 w 
805.5 w 
419.8 w 
-  26.1 
7.9 i 

2022 
: 
: 
: 
: 

9 723 i 
14 484 

2023 
6.1 w 

2023 
-  591.6 
- 5 245.2 
2 245.2 
-  147.3 
2 555.8 
-  8.7 
-  2.7 
14.3 
863.7 w 
93.5 w 
74.0 w 
957.2 w 
495.0 w 
-  22.3 
7.6 i 

2023 
: 
: 
: 
: 

: 

: 
: 

2024 
1.7 w 

2024 
- 1 088.3 
- 6 006.0 
2 251.7 
-  82.2 
2 748.2 
-  2.6 
-  3.6 
13.8 
: 
: 
: 
: 
: 
-  23.7 
: 

2024 
: 
: 
: 
: 

2021 
57.5 iw 
134.3 w 
9 166.2 w 
: 
: 
: 

2022 
51.6 iw 
106.7 w 
10 163.8 w 
: 
: 
: 

2023 
47.4 iw 
107.9 w 
11 051.4 w 
: 
: 
: 

2024 
: 
: 
12 328.6 w 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rates: day-to-day money rate, per annum (%) 
Euro exchange rates: average of period (1 euro = … national currency) 
Trade-weighted effective exchange rate index, 42 countries (2015 = 100) 
*3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries 
(2015 = 100) 
Value of reserve assets (including gold) (million euro) 

: 
1.956 
99.2 w 
0.0 iw 

: 
1.956 
106.1 w 
0.1 iw 

: 
1.956 
107.4 w 
0.1 iw 

: 
1.956 
108.5 w 
0.1 iw 

: 
1.956 
111.0 w 
0.1 iw 

: 
1.956 
112.5 w 
0.1 iw 

37.2 

637.1 

1 377.8 

72.8 

26.5 

555.4 

External trade in goods 
Value of imports: all goods, all partners (million euro) 
Value of exports: all goods, all partners (million euro) 
Trade balance: all goods, all partners (million euro) 
Terms of trade (export price index / import price index * 100) (number) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 
Crude rate of natural change of population (natural growth rate): number of births minus 
deaths (per thousand inhabitants) 
Infant mortality rate deaths of children under one year of age (per thousand live births) 
Life expectancy at birth: male (years) 
Life expectancy at birth: female (years) 

Labour market 
Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that 
is economically active (%) 
Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are 
in employment (%) 
Male employment rate for persons aged 20–64 (%) 
Female employment rate for persons aged 20–64 (%) 
Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are 
in employment (%) 
Employment by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
People employed in the public sector as a share of total employment, persons aged 20–64 
(%) 
People employed in the private sector as a share of total employment, persons aged 20–64 
(%) 

Note 

Note 

Note 

2012 
7 799 
4 018 
- 3 781 
98.3 iw 
72.3 iw 
60.6 iw 

2012 
-  0.9 

5.4 
: 
: 

2012 
: 

: 

: 
: 
: 

2020 
8 634 
5 379 
- 3 254 
105.6 iw 
72.4 iw 
60.8 iw 

2021 
11 042 
7 298 
- 3 744 
104.4 iw 
72.8 iw 
58.9 iw 

2020 
: 

2021 
: 

: 
: 
: 

2020 
: 

: 

: 
: 
: 

: 
: 
: 

2021 
63.4 b 

52.6 b 

66.0 b 
39.1 b 
35.6 b 

: 
: 
: 
: 
18.5 bw 

: 
: 
: 
: 
19.1 bw 

9.4 bi 
24.4 bi 
9.1 bi 
57.0 bi 
19.8 bw 

7) 8) 

2022 
14 641 
9 190 
- 5 451 
98.5 iw 
73.6 iw 
56.9 iw 

2022 
-  4.2 p 

: 
: 
: 

2022 
63.6 

53.9 

67.7 
40.0 
36.3 

7.3 i 
25.4 i 
9.2 i 
58.2 i 
19.0 w 

2023 
14 197 
8 538 
- 5 659 
106.1 iw 
73.0 iw 
59.0 iw 

2024 
14 651 
8 219 
- 6 432 
105.9 iw 
73.1 iw 
59.2 iw 

2023 
-  2.8 p 

2024 
-  3.2 p 

: 
: 
: 

2023 
64.3 

55.9 

69.5 
42.1 
38.6 

7.6 i 
25.1 i 
9.2 i 
58.0 i 
19.0 w 

: 
: 
: 

2024 
66.6 

58.2 

71.9 
44.3 
40.9 

7.7 i 
24.2 i 
9.5 i 
58.6 i 
: 

7) 8) 

81.5 bw 

80.9 bw 

80.2 bw 

81.0 w 

81.0 w 

: 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unemployment rate: proportion of the labour force that is unemployed (%) 
Male unemployment rate (%) 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 
Long-term unemployment rate: proportion of the labour force that has been unemployed for 
12 months or more (%) 
Unemployment rate for persons (aged 25–64) having completed at most lower secondary 
education (ISCED levels 0-2) (%) 
Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED 
levels 5-8) (%) 

: 
: 
: 
: 
: 

: 

: 

: 
: 
: 
: 
: 

: 

: 

Social cohesion 
Average nominal monthly wages and salaries (national currency) 
Index of real wages and salaries (index of nominal wages and salaries divided by the 
inflation index) (2016 = 100) 
Gini coefficient 
Poverty gap 

Note 

2012 
826 w 
: 

: 
: 

2020 
956 w 
: 

: 
: 

17.4 b 
14.4 b 
22.0 b 
38.3 b 
13.4 

24.7 b 

11.3 b 

2021 
998 w 
: 

: 
: 

15.4 
12.6 
19.8 
35.1 
11.4 

25.1 

10.7 

13.2 
10.9 
16.7 
30.1 
9.6 

22.9 

9.0 

2022 
1 122 w 
: 

2023 
1 263 w 
: 

: 
: 

: 
: 

12.6 
10.1 
16.6 
30.2 
9.0 

24.0 

7.5 

2024 
: 
: 

: 
: 

Standard of living 
Number of passenger cars relative to population size (number per thousand population) 
Number of mobile phone subscriptions relative to population size (number per thousand 
population) 
Mobile broadband penetration (per 100 inhabitants) 
Fixed broadband penetration (per 100 inhabitants) 

Infrastructure 
Density of railway network (lines in operation per thousand km²) 

Length of motorways (kilometres) 

Education, Innovation and Research 
Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8) 
Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8), 
males 
Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8), 
females 
Participation in early childhood education (children aged 3 and over) 
Participation in early childhood education (children aged 3 and over), males 
Participation in early childhood education (children aged 3 and over), females 
Low achieving 15-year-olds in reading 
Low achieving 15-year-olds in mathematics 

Note 

2012 
196.0 i 
873.2 ew 

2020 
268.0 pi 
1 010.0 w 

2021 
284.0 p 
1 095.5 ew 

2022 
292.0 p 
1 110.1 w 

2023 
306.0 p 
1 061.9 w 

2024 
321.0 p 
: 

: 
: 

2012 
20.1 iw 

: 

2012 
: 
: 

: 

: 
: 
: 
: 
: 

Note 

Note 

89 

46.7 w 
22 w 

2020 
19.9 iw 

218 

2020 
: 
: 

: 

25.0 w 
25.2 w 
24.7 w 
: 
: 

52.6 ew 
23 ew 

2021 
19.9 iw 

218 

2021 
28.8 
23.9 

34.0 

29.6 w 
29.6 w 
29.6 w 
: 
: 

60.6 w 
26 w 

2022 
19.9 iw 

231 

2022 
28.6 
23.4 

34.1 

43.6 w 
44.1 w 
43.2 w 
: 
: 

63.1 w 
26 w 

2023 
19.9 iw 

231 p 

2023 
28.2 
23.5 

33.1 

45.0 w 
45.3 w 
44.7 w 
: 
: 

: 
: 

2024 
: 

: 

2024 
26.7 
21.3 

32.6 

: 
: 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Low achieving 15-year-olds in science 
Early leavers from education and training: proportion of persons aged 18-24 with at most 
lower secondary education (at most ISCED 2011 level 2) who are not in further education or 
training 
Early leavers from education and training: proportion of men aged 18-24 with at most lower 
secondary education (at most ISCED 2011 level 2) who are not in further education or 
training 
Early leavers from education and training: proportion of women aged 18-24 with at most 
lower secondary education (at most ISCED 2011 level 2) who are not in further education or 
training 
Proportion of persons aged 25-64 having participated in education and training (last 4 
weeks) 
Proportion of persons aged 25-64 having participated in education and training (last 4 
weeks), men 
Proportion of persons aged 25-64 having participated in education and training (last 4 
weeks), women 
Exposure of vocational education and training (VET) graduates to work-based learning (% of 
population aged 20-34) 
Share of individuals having at least basic digital skills (% of population aged 16-74) 
Share of individuals having at least basic digital skills (% of population aged 16-74), males 
Share of individuals having at least basic digital skills (% of population aged 16-74), females 
Public expenditure on education relative to GDP (%) 
Gross domestic expenditure on R&D relative to GDP (%) 
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP 
(%) 
Percentage of households who have internet access at home (%) 

Environment 
Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 
Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant 
prices) 
Electricity generated from renewable sources relative to gross electricity consumption (%) 
Road share of inland freight transport (based on tonne-km) (%) 

Energy 
Primary production of all energy products (thousand TOE) 
Primary production of crude oil (thousand TOE) 
Primary production of solid fuels (thousand TOE) 
Primary production of gas (thousand TOE) 
Net imports of all energy products (thousand TOE) 
Gross inland energy consumption (thousand TOE) 

: 
: 

: 

: 

: 

: 

: 

: 

: 
: 
: 
: 
0.27 
: 

: 

2012 
64.0 w 
: 

: 
65.9 w 

2012 
: 
: 
: 
: 
: 
: 

: 
: 

: 

: 

: 

: 

: 

: 

: 
: 
: 
4.2 
0.20 
0.09 

72.8 

2020 
74.7 w 
435.2 

49.3 
78.8 w 

2020 
5 237 
0 
3 329 
0 
1 805 i 
7 108 

: 
4.7 

4.9 

4.4 

2.1 

2.0 

2.1 

: 

34.7 
36.3 
33.2 
: 
0.19 
0.18 p 

75.5 

2021 
76.3 w 
420.4 

46.3 
78.8 w 

2021 
5 223 
0 
3 121 
0 
2 002 i 
7 374 

: 
3.6 

3.9 

3.3 

1.8 

1.6 

2.0 

: 

: 
: 
: 
: 
: 
: 

: 

2022 
76.3 ew 
399.8 

: 
78.4 w 

2022 
5 313 
0 
3 348 
0 
1 921 i 
7 310 

: 
4.2 

5.2 

3.1 

1.8 

1.5 

2.0 

: 

30.1 
30.8 
29.3 
: 
: 
: 

81.6 

2023 
: 
: 

: 
77.4 w 

2023 
5 278 
0 
3 192 
0 
1 726 i 
6 951 

: 
3.8 

5.0 

2.5 

1.6 

1.2 

2.0 

: 

: 
: 
: 
: 
: 
: 

84.2 

2024 
: 
: 

: 
80.9 w 

2024 
: 
: 
: 
: 
: 
: 

Note 

9) 

Note 

90 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross electricity generation (GWh) 

: 

16 874 

18 536 

16 381 

17 185 

: 

Agriculture 
Agricultural output volume index (at producer prices) (2015 = 100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand heads, end of period) 
Livestock numbers: live swine (thousand heads, end of period) 
Livestock numbers: live sheep and live goats (thousand heads, end of period) 
Raw milk available on farms (thousand tonnes) 
Harvested crop production: cereals (including rice) (thousand tonnes) 
Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

Source: Eurostat and/or the statistical authorities in Bosnia and Herzegovina 

Note 

2012 
: 
1 735.3 e 
446.0 e 
539.0 e 
1 069.0 i 
: 
916.7 e 
0.0 
256.4 e 

2020 
: 
1 845.6 e 
427.0 e 
547.0 e 
1 085.0 i 
: 
1 966.8 e 
0.0 
323.7 e 

2021 
: 
1 865.8 e 
339.5 
569.6 
1 083.2 i 
: 
1 425.1 e 
0.0 
292.7 e 

2022 
: 
1 110.4 b 
339.2 
471.6 
1 041.6 i 
: 
1 173.7 b 
0.0 
238.2 b 

2023 
: 
1 113.7 e 
330.1 
400.7 
: 
: 
1 110.0 e 
0.0 
238.0 e 

2024 
: 
: 
: 
: 
: 
: 
: 
0.0 
: 

: = not available 
b = break in series 
e = estimated value 
n =  not significant value 
p = provisional 
i = Eurostat estimate 
w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and 
without any assurance as regards their quality and adherence to EU statistical methodology 

* = Macroeconomic Imbalance Procedure (MIP) indicator 

Footnotes: 

1)  Entrepreneurs (natural persons) are not included. 
2)  Consumer price inflation 
3)  Based on IMF balance of payments manual, Asset - Liability Approach. 
4)  Based on IMF balance of payments manual, sixth edition. 
5)  Based on IMF balance of payments manual, sixth edition and OECD Benchmark Definition of Foreign Direct Investment - 4th 

edition. 

6)  M1 money supply comprises cash outside banks and transferable deposit in domestic currency of all domestic sectors 

(except central government deposits). 

7)  From January 2021, the Agency for Statistics of Bosnia and Herzegovina applies the redesigned methodology of the Labour 
Force Survey, in accordance with the new Regulation of the European Parliament and the Council. This has resulted in a 
break in the time series. 

8)  The public sector includes NACE Rev. 2 Sections O, P and Q while the private sector includes other NACE Sections. 

91 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
9)  Data not collected on inland waterways. Road share of inland freight transport based on road and rail transport. 

92