On 10 June 2015 representatives of the European Commission (Commission) and Bosnia and Herzegovina (BiH) institutions met in Mostar and held comprehensive technical consultations in the field of internal market and competition.

Both sides welcomed the entrance into force of the Stabilisation and Association Agreement on 1 June and underlined the new opportunities and obligations deriving from this Agreement which is now a stable framework for the deepening of EU-BiH relations.

Overall, some progress was noted since the last Sub-committee meeting in June 2014 though the long process of government formation slowed down work in most areas. The Commission welcomed the adoption of the anti-money laundering law, the adoption of amendments to the BiH criminal code and the entrance into force of the new law on public procurement, which enabled BiH to align further with the EU Public Directives of 2004. Some further work will be necessary on concessions and on public procurement to align with the 2014 Directives.

Some progress was noted in the field of banking and non-banking sector (insurance, securities and investment funds). It was underlined by the Commission that the crucial role of the Insurance Agency of BiH in the legislative process should be fully respected by both entities. The progress in the sector of intellectual property rights was once again positively assessed while it was reiterated that the enforcement mechanisms should be strengthened.

As regards competition, the Commission welcomed the nomination of the new President of the Competition Council after a vacancy of more than 7 months. It was stressed by both sides that the procedures need to be changed to avoid this in future. The Commission questioned several aspects of the decision making process including the tight deadlines and potential ethnic based veto rights. A serious concern remains the lack of financial resources for the proper functioning of the State Aid Council as only the State level and Federation are paying their full contribution to the budget which is not the case for Republika Srpska. Due to these budgetary constraints the State Aid Council is not in a position to work in full capacity.

The Commission welcomed progress on the side of the RS in cutting the number and length of procedures for establishing and registering companies and the related fees and encouraged the Federation to bring about similar improvements. In the field of service provision the Commission underlined the importance to remove obstacles in creating a single market for services within BiH (e.g. need for double-registration in both entities) while preparing for the EU single market.

Finally, issues related to company law, audit, accounting, the mutual recognition of professional qualifications and postal services were discussed.