CELEX: 52004PC0205
Language: en
Date: 2004-03-30
Title: Proposal for a Council Decision on the principles, priorities and conditions contained in the European Partnership with Bosnia and Herzegovina {SEC(2004) 375}

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         Brussels, 23.4.2004
                                                         COM(2004) 205 final/2
   CORRIGENDUM
   Titre.
   Concerne toutes les versions linguistiques,
   sauf le NL.
                                            Proposal for a
                                      COUNCIL DECISION
    on the principles, priorities and conditions contained in the European Partnership with
                                      Bosnia and Herzegovina
                                                  .
                                   (presented by the Commission)
                                          {SEC(2004) 375}
EN                                                                                          EN
 ---pagebreak---                              EXPLANATORY MEMORANDUM
The Thessaloniki European Council of 19 and 20 June 2003 reiterated its determination to
fully and effectively support the European perspective of the Western Balkan countries and
stated that “the Western Balkans countries will become an integral part of the EU, once they
meet the established criteria”. It endorsed the Council’s Conclusions of 16 June 2003 on the
Western Balkans including the annex “The Thessaloniki Agenda for the Western Balkans:
moving towards European integration”, which aims at further intensifying relations between
the European Union and the Western Balkans, building also on practices used in the
enlargement process, inter alia through the introduction of European Partnerships. The
Commission has been invited to submit the first set of European Partnerships to the Council
for approval with the next Annual Reports on the Stabilisation and Association process (SAp)
due end of March 2004.
The European Partnership for Bosnia and Herzegovina is based on the provisions of Council
Regulation (EC) No. 533/2004. It lists short- and medium term priorities for Bosnia and
Herzegovina‘s preparations for further integration with the European Union identified in the
Commission’s 2004 Annual Report and serves as a checklist against which to measure
progress. The European Partnership for Bosnia and Herzegovina reflects its current stage of
preparation and is tailored to its needs. Bosnia and Herzegovina is expected to respond to the
European Partnership by preparing a plan with a timetable and details of how it intends to
address the European Partnership’s priorities. The progress in implementing the priorities will
be monitored regularly by the Commission, notably in the SAp Annual Reports and through
the structures set up under the SAp.
The European Partnership priorities should form the basis for programming of the financial
resources making up Community assistance, which will continue to be the assistance provided
for under existing financial instrument(s), in particular Council Regulation (EC) No
2666/2000 of 5 December 2000 (CARDS).
The proposed Council Decision has no financial implications.
In view of the above, the Commission invites the Council to adopt the attached decision.
                                                2
 ---pagebreak---                                           Proposal for a
                                    COUNCIL DECISION
  on the principles, priorities and conditions contained in the European Partnership with
                                    Bosnia and Herzegovina
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 533/2004 on the establishment of European
Partnerships in the framework of the Stabilisation and Association process1 and in particular
to Article 2 thereof,
Having regard to the proposal from the Commission,
Whereas:
(1)     The Thessaloniki European Council of 19 and 20 June 2003 endorsed the
        “Thessaloniki Agenda for the Western Balkans: moving towards European
        integration” where the drawing-up of European Partnerships is mentioned as one of
        the means to intensify the Stabilisation and Association process.
(2)     Council Regulation (EC) No 533/2004 sets out that the Council is to decide, by a
        qualified majority and following a proposal from the Commission, on the principles,
        priorities and conditions to be contained in the European Partnerships, as well as any
        subsequent adjustments.
(3)     Council Regulation (EC) No 533/2004 states that the follow up of the implementation
        of the European Partnerships will be ensured through the mechanisms established
        under the Stabilisation and Association process, notably the Annual Reports.
(4)     The Commission's 2003 Feasibility Study and 2004 Annual Report present an analysis
        of Bosnia and Herzegovina’s preparations for further integration into the European
        Union and identify a number of priority areas for further work.
(5)     In order to prepare for further integration into the European Union, Bosnia and
        Herzegovina should develop a plan with a timetable and details in terms of measures
        Bosnia and Herzegovina intends to take to this end.
1
  OJ L.
                                                 3
 ---pagebreak--- HAS DECIDED AS FOLLOWS:
                                           Article 1
In accordance with Article 1 of Council Regulation (EC) No 533/2004, the principles,
priorities and conditions in the European Partnership for Bosnia and Herzegovina are set out
in the annex hereto, which forms an integral part of this Decision.
                                           Article 2
The implementation of the European Partnership shall be examined through the mechanisms
established under the Stabilisation and Association process.
                                           Article 3
This Decision shall take effect on the third day following its publication in the Official
Journal of the European Communities.
Done at Brussels,
                                            For the Council
                                            The President
                                               4
 ---pagebreak---                                               ANNEX
1.        INTRODUCTION
The Thessaloniki Agenda identifies ways and means of intensifying the Stabilisation and
Association process, inter alia through the introduction of European Partnerships.
Based on the Commission’s Annual Report, the purpose of the European Partnership for
Bosnia and Herzegovina is to identify priorities for action in order to support efforts to move
closer to the European Union within a coherent framework. The priorities are adapted to
Bosnia and Herzegovina’s specific needs and stage of preparation and will be updated as
necessary. The European Partnership also provides guidance for financial assistance to Bosnia
and Herzegovina.
It is expected that Bosnia and Herzegovina will adopt a plan including a timetable and details
in terms of how they intend to address the European Partnership priorities. The plan should
also indicate ways to pursue the Thessaloniki agenda, the priorities on fighting organised
crime and corruption identified at the 2002 London Conference and at the Ministerial meeting
held in Brussels on 28 November 2003 in the framework of the EU-Western Balkans Forum
and the measures presented by each of the Western Balkan countries at the meeting of 5
November 2003 in Belgrade as a follow-up to the Ohrid Conference on integrated border
management.
2.        PRINCIPLES
The Stabilisation and Association process remains the framework for the European course of
the Western Balkan countries, all the way to their future accession.
The main priorities identified for Bosnia and Herzegovina relate to its capacity to meet the
criteria set by the Copenhagen European Council of 1993 and the conditions set for the
Stabilisation and Association process, notably the conditions defined by the Council in its
Conclusions of 29 April 1997 and 21 – 22 June 1999, the content of the final declaration of
the Zagreb summit of 24 November 2000 and the Thessaloniki agenda.
3.        PRIORITIES
The Commission’s Annual Report assesses progress made and notes areas where the country
needs to increase its efforts. The priorities listed in this European Partnership have been
selected on the basis that it is realistic to expect that Bosnia and Herzegovina can complete
them or take them substantially forward over the next years. A distinction is made between
short-term priorities, which are expected to be accomplished within one or two years, and
medium-term priorities, which are expected to be accomplished within three to four years.
The European Partnership indicates the main priority areas for Bosnia and Herzegovina’s
preparations for further integration into the European Union, based on the analysis in the
Feasibility Study and the 2004 Annual Report. It should be recalled that where legislative
approximation is concerned, incorporation of the acquis into legislation is not in itself
sufficient; it will also be necessary to prepare its full implementation.
                                                  5
 ---pagebreak--- 3.1      SHORT-TERM
POLITICAL SITUATION
DEMOCRACY AND RULE OF LAW
• Prepare elections – BiH should assume full organisational and financial responsibility for
   the 2004 municipal elections.
• More effective governance - Implement the Law on the Council of Ministers and the Law
   on Ministries. Convene meetings of the Council of Ministers and of Parliament with
   sufficient regularity to tackle government business expeditiously. Ensure that new State
   ministries and institutions created by the 2002 Law on the Council of Ministers become
   properly operational. Implement fully the 2003 – 2004 “Action Plan for Priority Reforms”
   and establish for 2004 (and following years) a consolidated State-level government work
   plan matching policy priorities with budgetary resources. (Feasibility Study
   recommendation)
• Follow up security sector reforms - Implement the Law on Defence. Adopt and begin to
   implement the Law on the Intelligence and Security Agency.
• More effective public administration - Make further effort towards creating an effective
   public administration, including developing a comprehensive and cost-estimated Action
   Plan for public administration reform with a clear distribution of competences (for example
   in the areas of police and health). Fund and co-operate with the Civil Service Agencies at
   State and Entity levels. (Feasibility Study recommendation)
• Effective judiciary - Adopt legislation establishing a single High Judicial and Prosecutorial
   Council for BiH with the aim of consolidating appointment authority over the Entity
   judiciaries and strengthening the independence of the judiciary throughout BiH. Provide
   appropriate staff and funding for the State Court. (Feasibility Study recommendation)
HUMAN RIGHTS AND PROTECTION OF MINORITIES
• Effective human rights provisions - Adopt and bring into force outstanding legislation
   supporting refugee returns. In particular, introduce, adopt and implement legislation on the
   BiH Refugee Return Fund. Complete the transfer of the human rights bodies to BiH
   control. Ensure that unresolved cases of the Human Rights Chamber are dealt with and that
   the Chamber’s responsibilities are transferred to the Constitutional Court. Provide adequate
   funding for the Court. Assume full national responsibility for the State Ombudsman and
   make progress on the merger of the State and Entity Ombudsmen. (Feasibility Study
   recommendation)
REGIONAL AND INTERNATIONAL CO-OPERATION
• Comply with existing conditionality and international obligations - Fully co-operate with
   ICTY, particularly on the part of RS, notably in bringing indicted war criminals to justice
   before the international tribunal […] Complete outstanding Road Map steps. Comply with
   the Dayton-Paris Peace Accords. Take steps to implement BiH’s Council of Europe post-
   accession criteria, especially in areas of democracy and human rights. (Feasibility Study
   recommendation)
                                                 6
 ---pagebreak--- ECONOMIC SITUATION
EXISTENCE OF A FREE MARKET ECONOMY AND STRUCTURAL REFORMS
• Ensure macro-economic stability – Maintain a stable macro-economic framework in the
  context of International Monetary Fund programme and demonstrate compliance with
  international financial institution conditionality.
• Improve the business environment - Drive forward enterprise privatisation. Adopt and
  implement reforms identified as part of the “Bulldozer Initiative”. Enact legislation on
  corporate governance.
• Reliable statistics - Implement the Law on Statistics, aiming at the creation of a
  functioning system of statistics with clear lines of responsibility and co-ordination
  mechanisms. (Feasibility Study recommendation).
MANAGEMENT OF PUBLIC FINANCES
• Budget legislation - Adopt and start to implement a budget law covering multi-annual
  budget planning and forecasting and start to elaborate a consolidated government account.
  (Feasibility Study recommendation)
• Budget practice - Take steps to record all income accruing to public authorities at different
  levels of government, including grants and other forms of international assistance.
  (Feasibility Study recommendation).
EUROPEAN STANDARDS
• European integration - Ensure the proper and full functioning of the Directorate for
  European Integration, including its aid co-ordination capacities. (Feasibility Study
  recommendation)
INTERNAL MARKET AND TRADE
• Respect international standards – Ensure the quick, complete and faithful implementation
  of all negotiated free trade agreements.
• Develop the BiH single economic space - Establish the Competition Council. Introduce
  provisions on the mutual recognition of products in the legal order of BiH and implement a
  consistent and effective public procurement regime throughout the country. Remove all
  duplicate licences, permits and similar authorisation requirements to allow service
  providers (including financial institutions) to operate throughout BiH without having to
  fulfil unnecessary administrative requirements. Create a single business registration system
  that is recognised throughout BiH. (Feasibility Study recommendation)
• Consistent trade policy - Establish a coherent and comprehensive trade policy and revise
  existing legislation to ensure a consistent policy on free zones. Establish at State-level
  certification and other procedures for the export of animal products and a phytosanitary
  office that are EC-compatible, with a view to promoting exports, but also enhancing
  standards and the single economic space. (Feasibility Study recommendation)
                                                7
 ---pagebreak--- • Customs and taxation reform – Proceed with implementation of the recommendations of
   the Indirect Tax Policy Commission. Ensure parliamentary adoption of the Law on the
   Indirect Tax Authority, including the adoption of related enabling legislation. Ensure
   implementation, including the appointment of a Director for the Indirect Tax Authority and
   the functioning of the new customs authority. Demonstrate progress in preparing the
   introduction of VAT with a view to beginning on schedule. (Feasibility Study
   recommendation)
• Certificates of origin – Ensure the reliability of all BiH certificates of origin.
SECTORAL POLICIES
• Integrated energy market - Implement Entity Action Plans for the restructuring of the
   electricity market. (Feasibility Study recommendation)
• Public broadcasting - Adopt legislation on PBS in line with European standards and the
   Dayton – Paris Peace Accords and take steps to ensure the long-term viability of a
   financially and editorially independent single state-wide public broadcasting system for
   Bosnia and Herzegovina, whose constituent broadcasters share a common infrastructure.
   (Feasibility Study recommendation)
CO-OPERATION IN JUSTICE AND HOME AFFAIRS
• Tackling crime, especially organised crime - Build up a State-level law enforcement
   capacity by allocating the necessary resources and facilities to ensure the full functioning
   of the State Information and Protection Agency and the BiH Ministry of Security. Proceed
   with structural police reform with a view to rationalising police services. (Feasibility Study
   recommendation)
• Managing asylum and migration - Ensure the establishment and operation of proper
   structures dealing with asylum and migration. (Feasibility Study recommendation)
• Addressing terrorism – Increase international co-operation and implement relevant
   international conventions on terrorism. Improve co-operation and exchange of information
   between police and intelligence services within the State and with other states. Prevent the
   financing and preparation of acts of terrorism.
3.2      MEDIUM-TERM
POLITICAL SITUATION
DEMOCRACY AND THE RULE OF LAW
• Prepare elections - Assume full organisational and financial responsibility for the 2006
   and other elections.
• Assume responsibility for government - Work towards full national responsibility for
   policy formulation and decision-making. All State-level ministries should be adequately
   financed and operational plans in place for institutions required by a future SAA and
   further European integration. Ensure proper policy-making co-ordination between all
   levels of government.
                                                8
 ---pagebreak--- • Further improve the functioning of public administration - Implement the consolidated
  Action Plan on public administration reform and improve administrative procedures.
  Improve policy-making and co-ordination capacities and build a training capacity for civil
  servants within BiH (including those dealing with European integration issues)
• Further strengthen the judicial system - Ensure equal standards of appointment,
  promotion, discipline and training for judicial and prosecutorial staff throughout BiH.
  Ensure full BiH responsibility for the BiH State Court, the Prosecutor’s Office and the
  High Judicial and Prosecutorial Council in terms of finance, administration and personnel.
• Advance police reform - Implement recommendations of functional and strategic reviews
  of the police sector and ensure co-operation among law enforcement agencies.
• Improve the fight against corruption – Make progress in combating corruption and
  demonstrate compliance with relevant international commitments. Adopt and implement
  an anti-corruption strategy, ensure effective implementation of the law on conflict of
  interests and enhance capacity to investigate and prosecute corruption.
HUMAN RIGHTS AND THE PROTECTION OF MINORITIES
• Ensure respect of human rights - Ensure a level of human rights protection comparable to
  or better than that achieved under international supervision and demonstrate effective
  protection of minority rights, including those of Roma. Ensure comprehensive
  implementation of the Law on the Rights of National Minorities.
• Complete refugee returns - Complete the refugee return process, facilitating refugees’
  economic and social reintegration.
• Consolidate the office of the Ombudsman - Complete the merger of State and Entity
  Ombudsmen and ensure the functioning of the new institution.
REGIONAL AND INTERNATIONAL CO-OPERATION
• Ensure effective prosecution of war crimes - Demonstrate success in apprehending ICTY-
  indictees and in dismantling networks supporting indicted war criminals. Ensure
  continuous availability to ICTY of all documentation, materials and witnesses relevant to
  ongoing investigations and / or prosecutions. Assume administrative and financial
  responsibility for the War Crimes Chamber of the State Court.
• Continue regional co-operation – Work to find solutions to outstanding bilateral border
  issues with neighbouring countries.
• Implement international commitments – Comply with Thessaloniki commitments in
  terms of co-operation in matters of justice and home affairs, trade, energy, transport and
  environment.
ECONOMIC SITUATION
EXISTENCE OF A FREE MARKET ECONOMY AND STRUCTURAL REFORMS
• Promote further structural reform – Further improve corporate governance, reduce labour
  rigidities and ensure that commercial courts implement bankruptcy legislation. Allow the
                                              9
 ---pagebreak---   market to operate by reducing government interference and lowering the ratio between
  government expenditure and GDP.
• Facilitate business, in particular small and medium-sized enterprise (SME) development
  – Further develop co-ordination on SME policy and continue to implement the principles
  of the European Charter for Small Enterprises.
• Further develop State-level capacities in statistics - Elaborate and implement a multi-
  annual activity plan for statistics and produce regular, sound estimates of nominal and real
  GDP, including coherent data on (un)employment, inflation, balance of payments, wages
  and industrial production. Ensure co-operation with Eurostat.
MANAGEMENT OF PUBLIC FINANCES
• Ensure the operation of a consolidated government account - Ensure that a consolidated
  government account is fully operational within the State Ministry of Finance.
• Develop capacities in economic planning - Continue and reinforce the Medium-Term
  Economic Framework (MTEF) process for all budgetary users. Ensure transparent budget
  execution and regular financial reporting.
• Further reinforce budget preparation - Incorporate (currently) off-budget resources into
  budgets and maintain reasonable budgeting based on realistic revenue projections.
  Strengthen budget preparation processes in all ministries.
• Deal with domestic debt – Enforce the comprehensive plan on domestic debt agreed with
  the IMF.
EUROPEAN STANDARDS
• European integration – Implement a European integration strategy. Develop the capacity
  for progressive legal harmonisation with the acquis and expand BiH’s role in CARDS
  programming and implementation with the long-term aim of allowing the decentralisation
  of assistance.
INTERNAL MARKET AND TRADE
• Single market and business - Demonstrate the effective functioning of the Competition
  Council and the Entity Offices for Competition and Consumer Protection. Further
  strengthen the implementation of a consistent and effective public procurement regime,
  including the functioning of the Public Procurement Agency and the Procurement Review
  body. Continue to ensure the free movement of goods and services within BiH. Ensure the
  full functioning of the institutes for standards, metrology and intellectual property and
  facilitate links / information flows with public / private enterprises. Ensure consistent
  implementation of related legislation (especially on intellectual property).
• Trade management capacity – Reinforce policy planning and negotiation capacities in the
  Ministry of Foreign Trade and Economic Relations.
• Trade standards – Further develop the capacity of the State Veterinary Office and ensure
  the full functioning of the Phytosanitary Office with a view to reaching EU standards.
                                              10
 ---pagebreak---    Create a regulatory environment for technical standards, intellectual and industrial property
   rights in line with EU standards.
• Customs and taxation - Demonstrate that free zones are being managed in a manner
   compatible with the EU acquis. Complete the customs merger and ensure full
   implementation of the customs reform plan. Develop the ITA Governing Board into a
   Fiscal Council with a policy-setting capacity. Further strengthen administrative capacity
   for both customs and taxation. Monitor the implementation of State-level VAT and
   continue to develop collection and control strategies to reduce progressively the level of
   tax fraud for both direct and indirect taxation.
SECTORAL POLICIES
• Public broadcasting system - Fully implement agreed PBS reforms. Maintain the
   independence of the Communications Regulatory Agency.
• Integrated energy market – Ensure harmonisation of the regulatory environment for
   energy and the establishment of a single State regulatory body, including the
   implementation of the law on the formation of ISO and TRANSCO. Implement the
   commitments in the 2003 Athens Memorandum of Understanding.
• Environment – Strengthen State-level capacity in the field of environment by ensuring the
   full functioning of a State Environment Agency.
CO-OPERATION IN JUSTICE AND HOME AFFAIRS
• Border management - Implement international commitments made at the May 2003 Ohrid
   Conference on security and border management and the measures presented at the EU –
   Western Balkans ministerial forum on JHA of November 2003. Endorse and implement an
   Integrated Border Management Strategy. Facilitate regional co-operation and trade by
   improving border management and transport facilities. Further develop co-operation
   between the State Border Service, the customs service, the police and the Prosecutor’s
   Office to interdict and prosecute trafficking and other cross-border crime. Further
   implement the national anti-trafficking plan. Improve the administrative capacity of the
   visa issuing regime, particularly the checking of visa applications.
• Organised crime - Demonstrate full implementation of all measures agreed in the Action
   Plan against Organised Crime presented at the Brussels JHA ministerial meeting of
   November 2003.
• Migration and asylum – Consistently enforce the Law on the Movement and Stay of
   Aliens and Asylum. Demonstrate effective national management of asylum and migration
   policies and monitor and report on operations. Continue to negotiate and conclude
   readmission agreements.
4.        PROGRAMMING
Community assistance under the Stabilisation and Association process to the Western Balkan
countries will be provided by the relevant financial instruments, and in particular by Council
                                                11
 ---pagebreak--- Regulation (EC) No 2666/20002; accordingly, this Decision will have no financial
implications. In addition, Bosnia and Herzegovina will have access to funding from multi-
country and horizontal programmes. The Commission is working with the European
Investment Bank and the International Financial Institutions, in particular the European Bank
for Reconstruction and Development and the World Bank, with a view to facilitate the co-
financing of projects relating to the Stabilisation and Association process.
5.        CONDITIONALITY
Community assistance under the Stabilisation and Association process to the Western Balkan
countries is conditional on further progress in satisfying the Copenhagen political criteria and
in particular progress in meeting the specific priorities of this European Partnership. Failure to
respect these general conditions could lead the Council to take appropriate measures on the
basis of Article 5 of Regulation (EC) No 2666/2000.
Community assistance shall also be subject to the conditions defined by the Council in its
Conclusions of 29 April 1997 and 21 – 22 June 1999, in particular as regards the recipients’
undertaking to carry out democratic, economic and institutional reforms.
6.        MONITORING
The follow up of the European Partnership is ensured through the mechanisms established
under the Stabilisation and Association process, notably the Annual Report on the
Stabilisation and Association process.
2
  OJ L 306, 7.12.2000. p.1.
                                                 12