Representatives of the European Commission and Bosnia and Herzegovina institutions met in Sarajevo to discuss the level of approximation and transposition of the EU rules in the fields of Economic and Financial Issues and on Statistics. The macroeconomic and fiscal situation of the country was the focus of the discussions. The population and housing census was the main statistical issue.

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. A sound economic and financial development of the country requires substantial structural reforms. The financial support granted and planned by the IMF, the World Bank and the EU, which amounts to almost 1.5 billon Euro, is of considerable relevance to support BiH towards a more sustainable fiscal path. The delegations of the European Commission and of Bosnia and Herzegovina reached the following conclusions: Even though the worst effects of the economic and financial crisis may be over and there are first signs of recovery in the economy of BiH, there is an urgent need for the country to speed up structural reforms and fiscal adjustment efforts. More prudent fiscal policies are required including the reduction of the large public sector and reforms of the social benefits system.

In addition, improvements of the business environment and the functioning of labour markets are needed to enhance competitiveness and productive capacity of the economy. 

The Commission welcomed the good functioning of the Fiscal Council and its role in this reform process as well as the establishment of the Standing Committee for Financial Stability.

The Commission underlined the need for BiH to make sure that the external audit office becomes fully independent and not subject to Government. Some progress has been made in the field of statistics in further aligning the legislative framework to the EU laws and in strengthening the administrative capacities. Further improvement in the cooperation between the Statistical Offices themselves and with the Indirect Taxation Authority is however needed with a view, amongst others, to contributing to the proper establishment of national accounts and of business statistics.

The Commission urged BiH to finally agree on a compromise on the Law on the Census. If this law is not adopted before the summer break, the country will not be in a position to carry out the census in 2011, as all other European countries will do. The Commission would not be able to conduct the process of the accession of BiH to the EU in an appropriate manner. The European integration process of the country would be slowed down. It was underlined that the census has to be organised at State level, because Entity level censuses will not be recognised by the Commission (Eurostat).