Bosnia and Herzegovina’s citizens benefit from visa-free travel to the Schengen area since 2010. The Stabilisation and Association Agreement (SAA) entered into force on 1 June 2015; its trade provisions have been applied since 2008, leading to progressive trade liberalisation.

Bosnia and Herzegovina applied for EU membership in February 2016. The Commission adopted its Opinion (Avis) on the EU membership application of the country in May 2019, identifying 14 key priorities for the country to fulfil in view of opening EU accession negotiations. The EU Council endorsed the Opinion and key priorities in December 2019. The Opinion constitutes a comprehensive roadmap for deep reforms in the areas of democracy/functionality, the rule of law, fundamental rights and public administration reform.

In October 2022, the Commission recommended Bosnia and Herzegovina for candidate status, on the understanding that a number of steps are taken. In December 2022, the European Council granted Bosnia and Herzegovina the status of candidate country. In December 2023, the European Council decided it will open accession negotiations with Bosnia and Herzegovina, once the necessary degree of compliance with the membership criteria is achieved. It also invited the Commission to report to the Council on progress at the latest in March 2024, with a view to making a decision. In March 2024, the European Council decided to open accession negotiations with Bosnia and Herzegovina.

The EU is Bosnia and Herzegovina’s biggest trading partner. In 2022, 57% of the country’s imports originated from the EU, while 74% of its exports went to the EU. About 60% of the country’s stock in foreign direct investments originates in EU countries. Bosnia and Herzegovina participates in economic dialogue with the EU. Every year the country submits to the European Commission a medium-term Economic Reform Programme (ERP), setting out plans to strengthen macro-fiscal stability and tackle structural obstacles to growth. Based on the ERP, BiH meets annually with the Commission, EU Member States and all other enlargement countries at the Economic and Financial Dialogue, aimed at preparing the country for its future participation in EU economic policy coordination. 

Following the expiration of previous reform agendas (the 2015-2018 ‘Reform Agenda’ and the Joint Socio Economic Package 2019-2022), a new set of socio-economic reforms needs to be implemented by the governments at all levels in the country, in full alignment with the policy guidance set out in the joint conclusions of the Economic and Financial Dialogue. The EU remains committed to supporting this process through grants, loans and technical assistance.

Socio-economic reforms are key for BiH’s progress towards a functioning market economy – an important prerequisite for the country’s ultimate membership in the EU. The Economic Reform Programme is a document that each candidate country submits every year outlining their programme of structural reforms in upcoming three years. In 2023 a new guidelines for ERP were issued named ERP 2.0. aiming to revamp process and provide more focused approach. The ERP 2.0 defines three areas and 12 structural reforms out of which each candidate country needs to select up to two structural reforms in each of the three areas. The EU is to provide technical support to BiH in the next two years in order to conduct the diagnostics of structural obstacles, define the needed reforms as well as measures and activities necessary to achieve them.

The three reforms (12 Structural reforms):

1. Competitiveness (a. Business environment, and reduction of the informal economy, b. Reform of State-owned enterprises, c. Economic integration reforms, d. Agriculture, industry and services, e. Research, development and innovation)
2. Sustainability and resilience (a. Green transition/digital transformation, b. Energy market reforms, c. Transport market reforms)
3. Human Capital and Social Policies ( a. education and skills, b. Employment and labour market, c. Social protection and inclusion, d. Health care).

The EU is Bosnia and Herzegovina’s largest trading partner and provider of significant financial assistance. Since 1996, the EU Delegation in BiH has implemented projects worth more than €3.7 billion in grants for the reconstruction, rule of law, sustainable economy, education & employment, transport, agriculture & rural development and other key areas in BiH. Bosnia and Herzegovina has also benefitted from EU financial assistance disbursed through available local and regional funds and mainly under the Instrument for Pre-accession Assistance (IPA), which the EU Delegation to BiH is responsible for implementing via direct management.

The EU is supporting the socioeconomic development and fundamental reforms in Bosnia and Herzegovina with financial and technical assistance through the IPA. For 2021-2023, the IPA III funding for national programmes amounts to over €256 million for Bosnia and Herzegovina. This includes €70 million from the 2023 Energy Support Package immediate measures, the 90% of which have already been disbursed to support vulnerable families and SMEs facing the rising energy prices. The actions are also aimed at supporting policy measures to accelerate the energy transition.

Funds managed through the EU Delegation in BiH are not the only source of EU funding that Bosnia and Herzegovina benefits from. Bosnia and Herzegovina benefits from different budget sources disbursed through available local and regional funds. More information about the projects and the financial support to BiH is available on this link.

Bosnia and Herzegovina has progressively extended its participation in EU programmes, partly co-financed through IPA funds. BiH currently takes part in COSME, Creative Europe, Customs 2020, Europe for Citizens, Erasmus+, Fiscalis 2020, Horizon Europe, Digital Europe and the Third Programme for the Union’s action in the field of health and the EU Civil Protection Mechanism (“rescEU”). Bosnia and Herzegovina also takes part in the territorial cooperation programmes (Cross-border Cooperation, INTERREG-EURO-MED programme, etc.). At the outset of the COVID-19 pandemic outbreak, the EU committed €7 million for addressing immediate public health system needs across BiH, €13.7 million for the procurement of COVID-19 vaccines was mobilised and €73.5 million towards socioeconomic recovery projects.  

The European Union continues to support the implementation of the General Framework Agreement for Peace signed at Dayton/Paris in 1995. 

• From January 2003 until June 2012, the European Union Police Mission (EUPM) in BiH supported the country’s rule of law institutions in the fight against organized crime and corruption and provided advice on new police laws. In 2012, the EU Delegation/EUSR in BiH took over providing policy and strategic support to law enforcement in BiH advising on police legislation, promoting national and international co-operation as well as respect of human rights and fundamental freedoms. 
• The EU launched the military Operation, EUFOR Althea, in December 2004. The main objectives of Operation Althea include providing capacity-building and training to the Armed Forces of Bosnia and Herzegovina, supporting BiH’s efforts to maintain a safe and secure environment in BiH, as well as providing deterrence and continued compliance with the responsibility to fulfil the role specified in Annexes 1A and 2 of the Dayton/Paris Agreement, as the legal successor to SFOR.

Policy dialogue between BiH and the EU on the rule of law has taken place since 2011 in the context of the Structured Dialogue on Justice, and since December 2016 in the framework of the SAA Sub-committee on Justice, Freedom and Security. Three of the 14 key priorities outlined in the European Commission Opinion of May 2019 specifically target reforms in the rule of law area aimed at improving the functioning of the judiciary, strengthening the prevention and fight against corruption and organised crime, as well as ensuring effective coordination of border and migration management at all levels. 

In December 2019, the Expert Report on Rule of Law Issues in BiH (‘Priebe Report’) was issued as the outcome of an EU initiative to enhance the monitoring of the rule of law. Its findings are largely mirrored by the findings of the Analytical Report accompanying the Commission Opinion, pointing to a series of rule of law deficiencies in BiH, which the EU urged all relevant authorities in BiH to start addressing urgently.