A failure by the authorities of Bosnia and Herzegovina to complete preparations for two agriculture and rural development projects has forced the EU to suspend the earmarked 5 million EUR. The two projects aim to provide grants to farmers in the country, to build up capacities to implement EU funds for rural development (known as ‘IPARD’), and to develop a country-wide strategic plan for Rural Development.

This persistent lack of progress in these areas and in aligning legislation in this area with the EU ‘acquis’ not only means the potential loss of 5 million EUR of EU funds. Inaction could later result in losses of tens of millions of EUR intended for the agriculture sector in 2014 – 20. A clear political agreement on the set up of IPARD implementing structures and the development of a country wide strategic plan for rural development are preconditions for support to agriculture and rural development under the foreseen IPA II funds from the EU in this period. 

The Head of the Delegation of the European Union/EU Special Representative in Bosnia and Herzegovina, Ambassador Peter Sorensen, said:

“The lack of progress in this sector is one example of the risk Bosnia and Herzegovina faces – the risk of falling behind countries in the region in EU integration. It is imperative that the authorities of Bosnia and Herzegovina at all levels find practical and sustainable agreements so that citizens can benefit from EU funds. In this case, lack of preparation and co-ordination means that farmers also may not have the possibility to benefit from future EU funds in the tens of millions of Euros intended for them.

More generally it underlines the need for this country to agree on an EU co-ordination mechanism that will enable to country to speak with one voice.

The efficiency as well as the effectiveness of the EU funds provided to Bosnia and Herzegovina must be considered.  We owe this to the EU Member States’ taxpayers. Thus, as there was no substantive progress, we cannot further justify the funds committed. Only if there is verifiable evidence on progress in addressing top priorities in this sector can the funds be mobilised again. This would require clear and formal political commitments and agreements, both as regards IPARD structures and as regards the development of a strategic plan for rural development.”

The EU-BiH IPA Monitoring Committee meeting on 24 June 2013 will consider whether the projects should be terminated. It is the responsibility of the authorities of Bosnia and Herzegovina to act to resume EU support, at such a crucial moment for the country’s economic and political development, in particular given the challenges ahead for the Bosnia and Herzegovina agricultural sectors after Croatia’s accession to the EU on 1st July 2013.

Notes to Editors.
• Preconditions for the Agricultural census have not yet been fulfilled, although 1 million EUR under IPA 2012 budget is planned to support the census. These funds allocated for supporting the Agricultural Census, are therefore also at risk and may be lost to BiH if there is no adoption of relevant legislation.

• Already in the past, funds in the amount of 3 million EURO were lost due to a lack of progress in consolidating functional agricultural registries on a country wide basis. Crucial information systems, like the Land Parcel Identification System (LPIS), Geographic Information System (GIS) and the Agricultural Market Information System (AMIS) could have already been in place to management and control mechanisms beneficial for this sector.