EU integration and IMF program delayed
Overview:
Bosnia has been without a central government for almost a year. October parliamentary elections resulted in a constellation of political forces in the House of Representatives unable to reach agreement on forming a new Council of Ministers. Governments are in place at the Entity level and the economy is growing once again. However, the lack of a state-level government has serious, negative implications for Bosnia’s EU integration hopes. Constitutional reforms to facilitate this process are impossible at the moment (and difficult to achieve even once a government is formed given a lack of consensus on some key issues). Getting the IMF program back on track is more feasible. Steps taken at the Entity level to bring budget deficits back in line with program targets and implement structural reforms could yield results.