Sub-committee on Internal market  

Brussels, 12 May 2010

Representatives of the European Commission and Bosnia and Herzegovina institutions met in Brussels to discuss the level of approximation and transposition of the EU rules in the fields of Internal Market and Competition. 

Progress of Bosnia and Herzegovina in its European Integration process depends on the country’s fulfilment of the requirements of the Stabilisation and Association Agreement (SAA) and the European Partnership with the EU. Freedom of the flow of goods, services and capital is of high relevance for Bosnia and Herzegovina’s economic development. In this respect, the country should do its utmost to complete the creation of one single economic space. The transposition of the EU rules in the field of Internal Market creates a good basis for the increase of exports and hence better conditions for all kind of economic actors, above all small and medium-sized enterprises (SMEs). At the end of the meeting, the delegations of the European Commission and of Bosnia and Herzegovina reached the following conclusions:

Some progress has been made by Bosnia and Herzegovina in the banking sector and as regards insurance and other financial services. Better harmonisation of legislative acts and their implementation between the two Entities would be welcome, although relevant information is already exchanged by the main stakeholders. Banking supervision at State level is still not ensured. The Public Procurement regime of the country needs further approximation to the EU rules. Contracting authorities from State Ministries down to Municipalities will be able to obtain more economically advantageous offers for the services, supplies and works tendered.

Good progress will have been reached by Bosnia and Herzegovina in the field of intellectual, industrial and commercial property rights, if the related laws are finally adopted by the Parliamentary Assembly of Bosnia and Herzegovina in the coming days. Better coordination of the enforcement of these rules amongst the various authorities in the country will be the next main task. 

Some progress was also made regarding the freedom of establishment. The company legislation is fully harmonised, however the registration procedures of companies in both parts of the country should be further simplified. Bosnia and Herzegovina should further align its legislation with the postal acquis. It has been agreed to set up a consultation mechanism to find an acquis-compliant solution. 

The Commission welcomed the progress made in the transposition of the EU rules in the field of company law, accounting and auditing. This will help to create a better legal environment to companies, in particular to SMEs. This will also contribute to more foreign investments. 

The parties agreed to closely analyse the situation of public undertakings with regard to trade and competition. The Commission offered technical assistance in the near future for this purpose. 

The Commission welcomed the good functioning of the Competition Council and expressed its hope that the continuity of the functioning of the Council will be ensured through a proper selection procedure of new members in time. 

The Commission urged Bosnia and Herzegovina to adopt a State-aid Law at State level before 1st of July 2010. Otherwise, the Commission would have to declare Bosnia and Herzegovina being in breach of the Interim Agreement of the SAA.