Council of Ministers of Bosnia and Herzegovina Holds Its 89th Session

EU PRIORITY: BIH ACCEEDS PROTOCOL TO ELIMINATE OF ILLICIT TRADE WITH TOBACCO PRODUCTS 

The Council of Ministers of BIH confirmed a Proposal Platform for accession of Bosnia and Herzegovina to a Protocol to Eliminate Illicit Trade with Tobacco Products, as one among priorities of BIH on the European road within Protocol 28 on Consumers Health Protection.

The accession of our country to the Protocol was proposed by the Ministry of Civil Affairs, with a consent by competent institutions at other authority levels, for the aim of contribution to issue-solving of increasing illegal trade with tobacco products, which requires a comprehensive international approach and close cooperation in all aspects of illegal trade of tobacco, tobacco products and equipment of their production. One among key aims is protection of public health in BIH, meaning suppression of tobacco epidemics, which represent a global problem with serious consequences to public health, and demands more efficient, overarching and coordinated responses at both national and international levels.

Elimination of illegal trade is expected to have positive effects to efficacy of price and customs measures set for strengthening of tobacco control, which will produce decreased availability of tobacco products.

It is about the first Protocol to the World Health Organisation Framework Convention on Tobacco Control, ratified by Bosnia and Herzegovina in 2009. The Protocol contains a measures package to be taken by countries in cooperation. Total 70 countries acceded to the Protocol, including countries of the region.

The Proposal Platform for BIH accession to the Protocol to Eliminate of Illicit Trade with Tobacco Products will be provided to the BIH Presidency for further decision-making procedure.

The Ministry of Civil Affairs of BIH should set-up a cross-entity work group for assessment of the existing legal, regulatory and institutional framework in Bosnia and Herzegovina concerning requests under the Protocol and further Protocol implementation monitoring.

The Indirect Taxation Administration should coordinate report drafting on the Protocol implementation and provide it, on behalf of Bosnia and Herzegovina, to the Framework Convention Secretariat.

EUR 136,684,000 GRANT SECURED FOR CORRIDOR V c NORTH

The Council of Ministers of BIH defined a Proposal Grant Agreement between Bosnia and Herzegovina and the European Investment Bank – Corridor V c Medakovo – Poprikuše, Ozimice – Poprikuše Sub-Section / WB-IG08-BIH-TRA-04, (SERAPIS No): 2019-0751.

It is about WBIF grant in amount of EUR 136,684,000, allocated to the Federation of BIH, to be implemented by the European Investment Bank. The Project will link already constructed or sections under construction to result in functionally connected highways of the Corridor Vc northern part , thus shortening travel between cities of Zenica and Doboj.

The Project implementation will affect 385,000 citizens in terms of their better connectivity, access to workplaces, schools and health service.

The Proposal Agreement with Platform for its conclusion will be sent to the BIH Presidency for further procedure, with proposal for the Minister of Finance and Treasury as the BIH signatory thereof.

MORE THAN EUR 16.7 MILLION GRANT FOR REHABILITATION OF WATER SUPPLY INFRASTRUCTURE

The Council of Ministers of BIH defined a Proposal Grant Agreement (WB-IG10-BIH-ENV-03) between Bosnia and Herzegovina and the European Investment Bank – Water  Supply and Sewage of Republika Srpska II, investment in the municipalities in Doboj, Gradiška, Laktaš, Priejdor, Prnjavor, Teslić, Trebinje, Vukosavlje, Rogatica, Nevesinje, East Ilidža, Novi Grad, Milići, Čelinac, and Zvornik, (FI No): 99.599 (SERAPIS No): 2018-0281), worth EUR 16,755.000.

The Project covers 29 investments/components within 15 units of local administration (six towns and nine municipalities) in Bosnia and Herzegovina, in Republika Srpska territory, and it relates to infrastructure development for water supply, sewage and rainwater. The data available and official statistics suggest the project implementation should improve living standard for more than 216,000 people un Republika Srpska.

This is the continuation of the “Water Supply and Sewage of Republika Srpska” Project, in a successful implementation since 2010.

The Proposal Grant Agreement with Platform for its conclusion will be sent to the BIH Presidency for further decision-making procedure, along with a proposal for the Minister of Finance and Treasury for the BIH signatory thereof.

AGREEMENT RATIFICATION

The Council of Ministers of BIH defined, upon a proposal by the Ministry of Foreign Affairs, a Proposal Decision on ratification of a Grant and Project Agreement of July 15, 2025, between KfW, Frankfurt am Main (KfW), Bosnia and Herzegovina, represented by the Ministry of Finance and Treasury (borrower), Federation of Bosnia and Herzegovina, represented by the Federal Ministry of Finance, and Public Company “Power Utility of Croat Community Herzeg-Bosnia”, Jsc Mostar (project implementation agency), for amount of EUR 2,959,000 for Reconstruction and Modernisation of the Pump-Accumulation Hydro-Power Plant Čapljina.

ECONOMIC ACTIVITY GROWTH TREND CONTINUES

The Council of Ministers of BIH adopted a piece of information from the Directorate for Economic Planning on macroeconomic indices for January-June 2025, suggesting a continued growth trend of economic activity, that started last year.

This was supported by data on GDP growth of 1.7 per cent in the 2025 QI, relative to the same time year before. Growth in relation to the previous quarter was 0.6 per cent. On the other side, consumer process index-measured inflation was about 3.4 per cent in January-June 2025 time, slightly more than in the previous year. Inflation was 4.6 per cent in June 29025, pointing at a much faster price rise, compared with inflation in the same time last year, mostly in sectors if food, beverages, health, alcohol drinks and tobacco, in addition to restaurant/hotels and other goods and services.

Data available on labour market speak on an increase of employment for about one per cent, real salary growth of 10 per cent, increase earmarking from citizens abroad of five per cent, and increase of loans for citizens about 10 per cent, which made-up an increase of private spending for 1.7 per cent. Public spending increased as well for 1.6 per cent due to increase of minimal salary in both private and public sectors at different levels in Bosnia and Herzegovina.

SUPPORT TO #BEDONOR CAPMAIGN

The Council of Ministers of BIH approved posting a transparent in colours of flag of Bosnia and Herzegovina with highlighted campaign logo #BeDonor, of 40mx4m on the Building of Friendship between Greece and BIH.

Previously the Ministry of Civil Affairs-tabled piece of information was adopted on marking the European Organ Donation Day.

NO CONSENT ON CIK INTERNAL ORGANISATION

The Council of Ministers of BIH failed - in two rounds of vote, with seven votes for and three against - to grant consent to a Proposal Rulebook on Internal Organisation of the Central Election Committee of Bosnia and Herzegovina. (end)

Link for Photos:

https://www.flickr.com/photos/vijeceministara/albums/72177720329403679