Representatives of the European Commission (Commission) on behalf of the European Union and of Bosnia and Herzegovina (BiH) met on 25 and 26 September 2014 in Sarajevo for the 7th Interim Committee meeting in the framework of the Interim Agreement (IA) and the Stabilisation and Association Agreement (SAA) between the European Union and BiH. The meeting was chaired by Ms Nevenka Savić (Director of the BiH Directorate of European Integration) and co-chaired by Mr Jean-Eric Paquet, Director for Western Balkans in the European Commission.
The EU Delegation recalled the Council Conclusions on the need for BiH to urgently implement the Sejdić-Finci ruling of the European Court of Human Rights. It regretted that it had to discontinue its repeated sustained facilitation efforts given the lack of readiness for compromise.
Both delegations agreed on the necessity to establish urgently an effective and efficient coordination mechanism on EU matters necessary for the successful interaction with the EU and the absorption of EU funding under the Pre-Accession Instrument (IPA II).
The EU Delegation expressed its disappointment that the negotiations regarding the adaptation of the protocol to the SAA/IA between the EU and BiH related to Croatia’s accession and regarding the traditional trade between BiH and Croatia continue to be stalled. The Commission recalled its proposal not to prolong autonomous trade measures benefitting BiH as from 2016 if no agreement would be reached in the meantime.
The BiH delegation reiterated its previous position as adopted by the Council of Ministers and the Presidency of BiH, and expressed its disappointment with the Commission´s proposal not to prolong the ATMs from 2016, if no agreement is reached. The BiH delegation reaffirmed its readiness to actively engage in further discussions to reach a mutually acceptable solution, as soon as the necessary conditions are in place.
Both delegations agreed that BiH needs to fully implement Human Rights legislation and adequately address human rights violations, such as hate speech and hate crimes targeting members of the LGBTI community. The EU Delegation stressed the importance of guaranteeing freedom of expression and strengthening media freedom.
The EU Delegation was pleased with the progress concerning housing needs and civil registration of Roma, and welcomed BiH holding currently the chairmanship of the Roma Decade.
Both delegations agreed to continue the positive work in the framework of the Structured Dialogue on Justice and Additional Rule of Law Matters, with particular emphasis to be put on anti-corruption policy and anti-discrimination legislation.
The delegation of BiH provided an update on the measures implemented by the BiH authorities to prevent from abuse of the visa free regime and on the visa benchmarks that still require action. In this regard, some positive elements were noted (e.g. in the field of border security and asylum). The Commission stressed that BiH authorities shall still continue to implement systematic measures to tackle the negative phenomenon of manifestly unfounded asylum applications to EU Member States and Schengen- associated countries.
The delegation of BiH informed about the recent adoption of the Global Framework for Fiscal Policies 2015-2017.
The EU Delegation welcomed the broad societal support for the “Compact for Growth and Jobs” which addresses serious structural economic problems in BiH and expressed its expectation that following the October elections the proposed reforms would be urgently launched at the relevant levels of government in BiH.
The EU Delegation praised the smooth completion of the enumeration phase of the census on population, households and dwellings in BiH in October 2013 and invited BiH to complete the data processing phase according to the agreed time schedule. It asked BiH to find a solution as regards the legal framework for the agricultural census which should be carried out soon.
The EU Delegation welcomed that BiH has taken into account some concerns of the Commission with regard to the revised Law on Excise Duties but stressed that the definition of independent small breweries benefitting from lower excise duty rates is not in line with the EU acquis thus creating a potential trade barrier. It welcomed the introduction of excise duties on cut tobacco.
The EU Delegation regretted that there was not sufficient progress made in the food safety/veterinary sector, to allow for the export of milk and dairy products to the EU. The continuous shortcomings in the veterinary and food safety fields identified by the Commission’s Food and Veterinary Office which relate to both legislation and administrative capacity need to be addressed urgently.
As regards the Neum corridor the Commission invited BiH to repeal its instructions regarding systematic customs controls at the borders to Croatia and to engage with Croatia to find suitable solutions.
The BiH delegation reiterated its position that the existing instruction does not represent impediment to the undisturbed transit as it would be merely providing for a registration of goods entering the BiH territory. The BiH delegation however committed to further discussion on this issue with Croatia.
The EU Delegation appreciated the progress of BiH in the area of intellectual, industrial and commercial property rights and asked BiH to strengthen its efforts on the enforcement of these rights.
The Delegation of BiH informed about its efforts in the area of State Aid and Anti-trust legislation. The Commission called upon the responsible authorities to provide appropriate resources for the under-financed State Aid Council.
Both delegations exchanged views on the situation of the energy market in BiH and related legislative and administrative initiatives. The Commission welcomed that BiH succeeded in bringing the electricity transmission company TRANSCO back to its operational capacity. However, distribution of net income beyond the ceiling of KM 100 million, before the adoption of a 10-year transmission network development plan and its subsequent approval by the State Electricity Regulatory Commission would clearly violate an agreement with the Commission reached at a meeting in early 2014. The Commission also urged BiH to comply with its obligations under the Energy Community Treaty, particularly in the gas sector where a serious and persistent breach of its obligations had been noted.
The EU Delegation emphasized regarding South-Stream, that BiH as a signatory of the Energy Community Treaty is obliged to bring the proposed Intergovernmental Agreement with the Russian Federation fully into line with the applicable EU law before proceeding.
The Commission informed about the state of play of the adoption process regarding the Indicative Strategy Paper and the 2014 Annual Action programme. It reminded BiH that the establishment of an efficient cooperation mechanism on EU matters is also crucial for IPA.
Both sides agreed on the schedule for the next 7th cycle of sub-committees which are considered an important element in maintaining a close dialogue.
