BiH’s EU path began with the Stabilization and Association Agreement (SAA) signing in 2008, which laid the foundation for cooperation with the EU. The agreement opened up trade and political dialogue opportunities, signalling BiH’s commitment to aligning with EU standards. In 2016, BiH formally applied for EU membership, a historic step that showed its determination to pursue integration into European structures. However, it was only in December 2020 that the European Commission officially granted BiH the status of a “potential candidate country,” recognising its aspirations but acknowledging that significant reforms were still necessary.
One of the most significant achievements in BiH’s EU path is the country’s participation in the Central European Free Trade Agreement (CEFTA), which has facilitated trade and economic cooperation with other countries in the Western Balkans. This has allowed BiH to improve its economic standing and begin aligning its trade policies with EU norms. Additionally, BiH has made progress in areas such as visa liberalisation. In 2010, BiH citizens gained visa-free access to the Schengen Area, an important milestone in demonstrating the country’s progress in aligning with EU standards in areas such as border control, security, and human rights.
BiH has also taken steps to strengthen its public administration in recent years. The country adopted the Public Administration Reform Strategy in 2016, aiming to enhance government institutions’ efficiency, transparency, and accountability. This is a significant step toward meeting EU expectations for good governance and the rule of law.
Despite these achievements, BiH still faces considerable challenges in its path to EU membership. The most prominent issue is the country’s internal political fragmentation. The Dayton Agreement, which ended the Bosnian War in 1995, created a highly decentralised state divided into two entities—the Federation of Bosnia and Herzegovina and the Republika Srpska—and the Brčko District (which is often referred to as the third entity). While ensuring peace, this system has also led to political gridlock and frequent disagreements on key reforms needed for EU integration. For instance, attempts to implement electoral reforms, which would ensure fairer representation for all ethnic groups, have repeatedly stalled due to deep divisions between political elites from different ethnic backgrounds.
Another significant challenge is corruption. Transparency International’s Corruption Perceptions Index consistently ranks BiH as one of the most corrupt countries in Europe. The lack of effective anti-corruption measures has undermined public trust in government institutions and slowed down reforms. For example, in 2019, the European Commission highlighted the need for BiH to strengthen its anti-corruption framework, citing the lack of accountability in public procurement and financial management as areas of concern.
The judiciary in BiH also requires significant reform. The European Commission has noted that the country’s judiciary is insufficiently independent and lacks the capacity to handle corruption cases effectively. One example is the slow progress in prosecuting high-level corruption cases. Despite efforts by institutions like the State Court of BiH, responsible for handling war crimes and organised crime cases, the judiciary often faces political interference, leading to delays and inefficiencies.
Finally, BiH faces serious economic challenges, including high unemployment, particularly among youth, and an economy that is heavily reliant on public sector employment. BiH’s GDP per capita remains lower than the EU average, and its labour market is characterised by limited foreign direct investment and a lack of innovation. Unemployment rates in BiH are some of the highest in the Western Balkans, with youth unemployment often exceeding 40%—this economic stagnation further fuels emigration, particularly among younger generations who seek better opportunities abroad.
Bosnia and Herzegovina must focus on several key reforms to accelerate its EU accession process. One of the most pressing issues is the political structure of BiH, which needs to be reformed to create a more functional and effective government. In particular, electoral and constitutional reforms are necessary to ensure a more inclusive and transparent political system. BiH must implement the European Court of Human Rights recommendations, such as those in the Sejdić-Finci case, which calls for reforms to ensure that all citizens, regardless of ethnic background, can fully participate in the political process. A more inclusive system would reduce political gridlock and ensure that BiH can implement EU-required reforms.
BiH must adopt more robust measures to combat corruption and strengthen its judicial system. This includes ensuring the independence of the judiciary, improving the effectiveness of anti-corruption bodies like the Agency for the Prevention of Corruption and the Coordination Body for Anti-Corruption, and improving transparency in public procurement. For example, BiH could take inspiration from neighbouring Croatia, which has made significant strides in tackling corruption through judicial reforms and enhanced whistleblower protection.
BiH needs to focus on diversifying its economy, reducing its dependence on the public sector, and fostering private sector growth. This includes adopting labour market reforms, improving the business environment, and increasing investments in education and innovation. The EU has recommended that BiH strengthen its competitiveness by modernising infrastructure, supporting small and medium-sized enterprises (SMEs), and improving labour market mobility.
BiH must continue its efforts to enhance cooperation with its neighbours and contribute to regional stability. This is essential not only for BiH’s EU aspirations but also for the broader stability of the Western Balkans. BiH should engage more actively in regional initiatives like the Western Balkans Six (WB6), which focuses on regional cooperation in areas such as trade, infrastructure, and security. Strengthening bilateral ties with EU member states, especially Croatia and Slovenia, could also help BiH accelerate its integration process.
Public support for EU membership remains mixed in BiH, and the political elite often fail to prioritise EU integration due to competing nationalist agendas. BiH’s leaders must engage citizens more effectively in the EU integration process, highlighting the tangible benefits that EU membership can bring, such as economic development, job creation, and enhanced stability. Public outreach campaigns and education programs could help demystify the EU and address many BiH citizens’ scepticism about the integration process.
Bosnia and Herzegovina’s path to EU membership has been slow but steady, marked by significant achievements in areas such as trade, judicial reform, and regional cooperation. However, internal political fragmentation, corruption, and weak institutions remain significant barriers to full integration. BiH must implement political, judicial, and economic reforms to progress further while fostering greater public support for EU membership. The EU’s continued support and engagement and strong political will in BiH will be crucial in navigating the complex path towards membership. With sustained reform efforts and a focus on regional cooperation, BiH has the potential to join the EU, contributing to greater stability and prosperity in the Western Balkans.
