SARAJEVO (Bosnia and Herzegovina), April 17 (SeeNews) – The European Commission said on Tuesday Bosnia and Herzegovina is still at an early stage of establishing a functioning market economy, having only made slight progress.
Bosnia faces weak rule of law, poor business environment, a fragmented and inefficient public administration and major labour market imbalances, weak institutional capacities, and an unsupportive investment climate, the EC said in its latest report on the country.
Moreover, Bosnia's informal economy remains significant, the Commission cautioned.
In terms of politics, the EC warned that Bosnia's electoral framework has to be urgently amended with a view to ensuring the proper organisation of the October elections.
It cautioned that the country's constitution is still in breach of the European Convention on Human Rights, as per the Sejdic-Finci case, while the 2010 Constitutional Court decision concerning the respect of the basic democratic right of the citizens of Mostar to vote in local elections has yet to be implemented.
The EC commented that the functioning of the Presidency of Bosnia and Herzegovina has been affected in the past year by the expression of divergent positions by its individual members on a number of issues under its competence over foreign policy.
It warned that with the exception of a few reforms and the notable adoption of the excise legislation, delivery on a number of reforms was delayed by lack of agreement within the ruling coalition members.
Countrywide strategies in areas such as energy, employment or public financial management are yet to be adopted, the EC also said.
In terms of reforming its public administration, the Commission said that Bosnia and Herzegovina is still at an early stage and that no progress has been achieved in the past year.
There is also some level of preparation regarding the fight against corruption, however, corruption is widespread and remains an issue of concern.
In terms of complying with EU legislation, the EC said that Bosnia and Herzegovina has made some progress and remains at an early stage in achieving the capacity to cope with competitive pressure and market forces within the EU.
In February this year, Bosnia delivered its answers to the Commission's Opinion Questionnaire, after it received it in December 2016.