Council of Ministers of Bosnia and Herzegovina Holds Its 86th Session

CONTINUATION OF BIH – EU DIALOGUE 

The Council of Ministers of BIH adopted a supplemented piece of information from the Directorate for European Integrations on the eighth meeting of the Committee for Stabilisation and Accession between the European Union and Bosnia and Herzegovina, to be held in Sarajevo on September 11, 2025.

A discussion was planned to take place at the meeting on the most topical themes and challenges concerning the Stabilisation and Accession Agreement implementation within political and economic criteria and financial assistance within IPA III.

Chair of Bosnia and Herzegovina Delegation Elvira Habota, Director of the Directorate for European Integrations, will be available to media for inquiries as to the meeting.

IMPLEMENTATION OF SUSTAINABLE DEVELOPMENT AIMS FRAMEWORK

Bosnia and Herzegovina has made a progress over the past time period in implementation of a Framework for Sustainable Development Aims implementation, by strengthening of institutional capacities, improvement of strategic documents and active inclusion of local communities, private sector and legislative authorities, according to Annual Report on Implementation of Framework for Realisation of Sustainable Development Aims in Bosnia and Herzegovina, adopted by the Council of Ministers of BIH  upon a proposal by the Directorate for Economic Planning.

The adopted Financial Framework for realisation of sustainable development aims, drafted with support by United Nations and international experts, enabled defining of innovative financing mechanisms, including strategic investment funds, green bonds mad public-private partnership, which is a relevant step towards diversification of sources needed for reaching sustainable development aims.

Indicators show varying trends like decrease of relative poverty and increase of employment, as well as stagnation or worsening in aeras such as security, food supply, life expectancy, immunisation and gender equality. Numerous challenges remain in the aera of environmental protection, water management and public administration efficacy.

The future focus should be on strengthening of coordination mechanism at all authority levels, mobilisation of additional financial resources, harmonisation of development documents with sustainable development aims, improvement of statistic data quality, and especially, those measuring the quality of public services, in addition to spreading good practice among local communities and partners.

RATIFICATION OF AGREEMNTS AND CONTRACTS

The Council of Ministers of BIH defined, upon a proposal by the Ministry of Foreign Affairs, several proposal decisions on ratification of two agreements and two contracts, to be sent to the BIH Presidency for further ratification procedure.

These are proposal decisions on ratification on Amendments and Supplements No. 2 to Finance Agreement of 2021-2027 Serbia - Bosnia and Herzegovina Cross Border Cooperation Programme; Finance Agreement for Interreg Programme (Interreg VI - C)2021-2027 Interreg Europe (CCI2021TC16RFIR001) between the European Union, represented by the European Commission, Bosnia and Herzegovina, represented by the Council of Ministers of Bosnia and Herzegovina Directorate for European Integrations and France, represented by the French region Upper France; Grant Contract (GrCF2 W2 W2 – Public Buildings Energy Efficacy in Tuzla Canton) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, in relation to an investment grant by the European Joint Fund for Western Balkans; and Grant Contract (GrCF: “Sarajevo Water Supply Line Project”) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, referring to an investment grant by the European Union, represented by the European Commission (financed within the Instrument of Pre-Accession Assistance, set forth under March 11, 2014 Decree 231/2014 of the European Parliament and Council (IPA II).

CONTINUED GROWTH TREND OF ECONOMIC ACTIVITIES IN BIH

The Council of Ministers of Bosnia and Herzegovina adopted a piece of information from the Directorate for Economic Planning on macroeconomic indices trend in Bosnia and Herzegovina for January-May 2025.

The graphic and tabular data show trends of main macroeconomic indices in Bosnia and Herzegovina and they include real sector, public finance, prices, monetary, financial and foreign sector and foreign direct investments.

The piece of information suggests on continued growth trend of economic activity in BIH from the last year, testified by data on GDP growth for 1.7 per cent relative to the year ago.

On other side, the inflation measured by consumer price index was 3.4 per cent, slightly more than a year ago. The major contribution to inflation increases within the consumer price index was in food and soft drinks, health service, alcohol drinks and tobacco, including in restaurants/hotels and other goods and services.

Available data on labour market suggest of a growth of employment of about 1 per cent, real salary increase for almost 10 per cent, increase of citizens’ earmarks from abroad of five per cent and increase of loans in citizens sector for about 10 per cent, which yielded private spending increase for 1.7 per cent.

Public spending grew simultaneously, and it was 1.6 per cent due to increase of minimal wage in both private and public sectors at all levels in Bosnia and Herzegovina.

ADOPTED GUIDELINES PLAN OF LABOUR MARKET POLICY ANMD ACTIVE EMPLOYMENT MEASURES

The Council of Ministers of BH took a decision to adopt a Guidelines Plan for Labour Market Policy and Active Employment Measures in Bosnia and Herzegovina for 2025.

This Plan targets regulation of actions by responsible institutions as to labour market and employment measures.

The Plan includes priority aims and policy guidelines, including active employment measures.

The decision will be implemented by the Labour and Employment Agency, Federal Employment Bureau, Employment Bureau of Republika Srpska, Employment Bureau of the Brčko District of BIH and other relevant institutions within their responsibilities,

The Plan indicates that last year’s positive trends continued, with a slight increase of employment and decrease of unemployment, with continued Employers’ requests for new workers. The number of employees increased for 0.7 per cent relative to 2023, and total number of employees was 855.7k, while the nmber of unemployed was decreased for 5.5 per cent in 2024, relative to 2023 and it was average 328.6k.

The average monthly salary per employee in 2024 was KM 1,381, as nominally increased for 7.5 relative to 2023.

Activities planned for 2025 are directed to further improvement of measures of active employment policy, boosting their effectiveness and sustainability of employment.

IMPLEMENTATION OF CEFTA AGREEMENT

The Council of Ministers of BIH adopted the Ministry of Foreign Trade and Economic relations-tabled repot on implementation of an Agreement on amendment and accession to the Central European Free Trade Agreement (CEFAT 2006) in 2024.

CONSENT TO APPOINTEMENT

The Council of Ministers of BIH granted its consent, upon a proposal by the Ministry of Foreign Affairs, to appointment of Lieutenant Daga-Magne Lunde to the post of defence attaché of the Kingdom of Norway in Bosnia and Herzegovina. (end)

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