Bosnia and Herzegovina Adopts Comprehensive Reform Agenda to Unlock EU Funds

Historic Adoption Paves Way for EU Integration

The Council of Ministers of Bosnia and Herzegovina officially adopted a comprehensive Reform Agenda on September 30, 2025. This pivotal decision, confirmed by Chairwoman of the Council of Ministers of BiH Borjana Krišto, marks a significant milestone in the country's efforts to align with European Union standards and unlock substantial financial support. The adoption occurred just hours before a critical deadline, preventing the forfeiture of an additional €108 million in EU funds.

The Reform Agenda is a prerequisite for Bosnia and Herzegovina to access funds from the EU's Growth Plan for the Western Balkans, a broader program valued at €6 billion. With this adoption, BiH could receive up to €917 million, contingent on approval from Brussels. European Commissioner for Enlargement Marta Kos and EU envoy to Bosnia Luigi Soreca welcomed the development, with Kos stating, 'Today, I'm very happy. Bosnia and Herzegovina has shown much needed unity. We have a Reform Agenda!'

Broad Scope of Reforms Across Key Sectors

The newly adopted Reform Agenda outlines 114 measures structured into four primary areas: green and digital transition, private sector development, human capital, and the rule of law. These reforms are designed to modernize the country's systems and foster closer ties with the European Union.

Key reforms detailed within the agenda include:

• The introduction of the 5G network.
• Harmonization of business regulations.
• Digitalization of education.
• A unified maternity leave law.
• Strengthening the judiciary and fighting corruption.
• Establishing an e-governance framework.
• Increasing enrollment in early childhood education and improving internet access in schools.

Measures concerning the Constitutional Court and the Council for State Aid were reportedly softened to overcome political impasses and ensure the agenda's adoption.

Liberalizing the Electricity Market

A central component of the Reform Agenda is the commitment to liberalize the electricity market and align electricity prices with market levels. This includes the adoption of a new electricity law, specifically the 'Bill on the Regulator, Transmission, and Electricity Market.' This legislation aims to transpose 16 EU directives and implement the EU's Electricity Integration Package, laying the groundwork for an organized electricity market and a national power exchange, which is planned to be based in Mostar.

This reform is crucial for Bosnia and Herzegovina's integration into the EU energy market and is a key requirement for potential exemption from the EU's Carbon Border Adjustment Mechanism (CBAM). As the region's largest net electricity exporter, BiH stands to benefit significantly from these changes. The agenda mandates the alignment of household electricity prices with regional and EU market prices by 2027, aiming for greater transparency and integration.

Next Steps and Implementation Timeline

Following its adoption, the Reform Agenda will be assessed by the European Commission. Most of the outlined reforms are slated for completion by the end of 2025, with the European Commission scheduled to evaluate progress every six months. The full integration phase for market coupling within the electricity sector is projected to take at least two to three years.