EU integration: Bosnia and Herzegovina's delays could prove costly
Published for the French media Le Courrier des Balkans on July 7 2026.
PUBLICATIONS (EN)
8/16/20262 min read
Bosnia and Herzegovina risks losing €373 million in European funding for failing to implement promised reforms, despite warnings from the European Commission.
Under the Western Balkans Reform and Growth Plan, adopted in 2024, Bosnia and Herzegovina, alongside the region’s other EU candidate countries, committed to implementing a series of reforms aimed at advancing its accession process and unlocking the €6 billion allocated under the mechanism for 2024–2027, including €2 billion in grants. The reforms are intended to gradually align national legislation with the EU acquis, ensuring that institutions are compatible with the European framework and preparing the economy for the rules of the single market. Beyond adopting new laws, they also require adjustments to the legal and institutional framework to ensure their effective implementation.
Bosnia and Herzegovina had already lost €108 million last year after delaying the submission of its reform agenda to the European Commission. The Commission eventually approved it in December and required the majority of measures to be implemented by the end of 2026.
In April, addressing the European Parliament’s Foreign Affairs Committee, Enlargement Commissioner Marta Kos warned that Western Balkan countries seeking EU membership risked losing a total of €700 million if they failed to implement the reforms set out in their accession plans within the prescribed deadlines. Yet Bosnia and Herzegovina has not officially announced the implementation of any of the 113 measures included in its plan, despite the deadline being set for December 2026.
Far-reaching reforms
The agenda includes a series of economic and institutional reforms, including the liberalisation of electricity and gas markets. Digitalisation is also significantly behind schedule: electronic identification, the rollout of a nationwide 5G network and compliance with cybersecurity standards have yet to materialise. The delays not only restrict access to international markets but also hamper the adoption of technologies that could improve productivity and, consequently, the competitiveness of the economy. For a labour-intensive economy such as Bosnia and Herzegovina’s, where low labour costs remain a comparative advantage, productivity gains are a major concern.
According to proponents of the reforms, digitalisation could also help reduce corruption by automating numerous administrative procedures and limiting opportunities for discretionary intervention by public officials.
The government must also establish a single register bringing together information on taxes paid by taxpayers and social benefits received, in order to comply with European standards on data processing.
Meanwhile, new laws concerning the Court of Bosnia and Herzegovina and the High Judicial and Prosecutorial Council (VSTV), which oversees judges and prosecutors, still need to be adopted to strengthen the judiciary’s independence from political authorities. Legislation aimed at protecting whistleblowers, particularly in corruption cases, is also still pending. Strengthening a stable legal and institutional framework is a crucial condition for attracting foreign investment.
Political deadlock
Radio Free Europe reports that some ministers have been reluctant to put discussions on the reform agenda on the parliamentary agenda and have delayed communicating its contents, slowing the adoption of the planned measures.
Nihad Omerović, a member of the ruling tripartite coalition representing the Narod i Pravda party and a member of the parliamentary Foreign Affairs Committee, told RFE that “the ratification of the agreement should have been completed six months ago. I fear that behind the scenes, political blackmail and horse-trading between the SNSD and HDZ BiH [the coalition’s two other parties] are paralysing the work of Parliament.”
Alongside Serbia and Kosovo, Bosnia and Herzegovina is among the region’s worst performers. If delays persist, it risks losing a further €373 million earmarked to finance the energy and digital transitions, as well as the modernisation of road and rail infrastructure.