1. REALIZING BOSNIA AND HERZEGOVINAS EUROPEAN POTENTIAL: FROM POST-CONFLICT TO PRE-ACCESSION FROM DAYTON TO BRUSSELS - PROGRESS ON EU INTEGRATION - Mr. Adnan Terzić, Prime Minister of Bosnia and Herzegovina International conference on development of Bosnia and Herzegovina CG Meeting on Bosnia and Herzegovina Sarajevo, September 22 and 23, 2004

2. 2 Road Map requirements have been met by September 20, 2002; Work on Feasibility Study started on March 18, 2003; Conditionally – positive assessment of Feasibility Study has been published on November 18, 2003, after which the Council of Ministers adopted Program of activities for realization of priorities in 2004 CHRONOLOGY 2

3. 3 The work on Feasibility Study has mobilized governments in BiH, created positive atmosphere and significantly influenced acceleration and implementation of reforms. A large number of experts from 25 BiH institutions, coordinators and institutions from FBiH and RS, as well as from Brcko District, have been involved in preparing the answers to 346 questions from European Commission. The Feasibility Study, with positive evaluation, has defined 16 priority areas in which Bosnia and Herzegovina must achieve significant progress. 3

4. 4 Mid-Term Development Strategy of Bosnia and Herzegovina (PRSP) Meeting the requirements for EU membership REFORMS PROCESSES IN BOSNIA AND HERZEGOVINA IS LED BY: 4

5. 5 Political Economic Legal REQUIREMENTS FOR MEMBERSHIP Institutional 5

6. 6 SAP PRSP 6

7. 7 Directly supports fulfilling of 2nd Copenhagen criterion: existence of efficient market economy as well as capability of corporate to persevere pressures of market forces on internal market of the Union, Partially supports fulfilling of 3rd Copenhagen criterion: capability of accepting obligations that come out of membership, including implementation of goals of political, economic, and monetary unions. MID-TERM DEVELOPMENT STRATEGY OF BOSNIA AND HERZEGOVINA (PRSP): 7

8. 8 THE MOST IMPORTANT ACHIEVEMENTS ON EUROPEAN PATH DURING 2004 REQUIREMENTS:ACHIEVEMENTS: Full cooperation with International criminal tribunal for war crimes in former Yugoslavia (ICTY): to support ICTY by providing full access to witnesses, documentation and archives; undertake actions on arrest of suspects, and establish Commission for investigation of events in Srebrenica in July 1995. Commission for Investigation events in Srebrenica in July 1995 has been established Completion of the Report of Commission for investigating events in Srebrenica July 10-19, 1995; To meet final deadline for implementation of post- accession criterions of Council of Europe for 2003 and 2004. Successful implementation of post-accession obligations towards the Council of Europe continued, especially in the area of democracy and human rights 8

9. 9 THE MOST IMPORTANT ACHIEVEMENTS ON EUROPEAN PATH DURING 2004 REQUIREMENTS:ACHIEVEMENTS: Establishing of more efficient government on the state level: Full and consistent implementation of the Law on Council of Ministers and the Law on Ministries and other administrative bodies; work actively on overall Action Plan for reform of public administration The Council of Ministers has been strengthened; The functional analysis of public administration have been started Strengthening of institutional capacities: An adequate funding of Court of BiH and BiH Prosecution has been provided. Cooperation between BiH Agency for Civil Service and FBiH and RS agencies for civil service has been established. Process of the revision of the civil servants has been completed; 9

10. 10 THE MOST IMPORTANT ACHIEVEMENTS ON EUROPEAN PATH DURING 2004 REQUIREMENTS:ACHIEVEMENTS: European integrations: To start preparation of BiH Strategy for European Integrations; harmonize procedures for coordination of Stabilization and Association Agreement on political and operative levels. The work on preparation of Strategy has started; short-term priorities have been addressed, while mid-term priorities are in process of planning; Decisions on horizontal and vertical coordination have been adopted; Decisions on harmonization of legal system have been adopted; Public campaign for getting the support of the public for European process has been launched with official title With Knowledge to Europe. 10

11. 11 THE MOST IMPORTANT ACHIEVEMENTS ON EUROPEAN PATH DURING 2004 REQUIREMENTS:ACHIEVEMENTS: To continue process of economic reforms: consistent trade policy To develop single economic area in Bosnia and Herzegovina by establishing Competition Council of BiH. The set of framework laws regulating free movement of goods have been adopted; The decision on establishing Phitosanitary Office of BiH has been adopted; Competition Council of BiH has been established Introduction of single economic space in BiH Laws on establishing of Institute for standards, Institute for Measures, and Institute for intellectual property have been adopted; The progress on strengthening single economic space in BiH continues; Public Procurements Law has been adopted by the House of Representatives of the State Parliament; 11

12. 12 THE MOST IMPORTANT ACHIEVEMENTS ON EUROPEAN PATH DURING 2004 REQUIREMENTS:ACHIEVEMENTS: To reform customs and tax systems: Implement recommendations of Commission for Indirect Taxation, especially on adoption of the Law on Indirect Taxation. Law on indirect taxation is in force; Indirect Taxation Administration has been established Building rule of law: Making progress on fighting the organized crime, to secure necessary funds for functioning of SIPA and Ministry of Security. Making progress on fighting the organized crime: SIPA is operational; Significant results in fighting human trafficking has been achieved; State Law on Police has been adopted and is in force since June 23, 2004. 12

13. 13 Council of Ministers has adopted 40 draft laws and sent them to parliamentary procedure. Both houses of BiH Parliamentary Assembly approved dynamic plans for adoption of the laws. To date, 32 laws have been adopted in both houses of the Parliamentary Assembly, while 8 laws are in parliamentary procedure; The laws are harmonized with Program of activities for realization of priorities in 2004. 13

14. 14 NEGOTIATIONS ON STABILIZATION AND ASSOCIATION AGREEMENT 14

15. 15 WE ARE MOVING FROM: STABILIZATIONASSOCIATION RECONSTRUCTIONTRANSITION 15

16. 16 Bosnia and Herzegovina through this process is becoming competent and reliable partner to the EU 16