Bosnia and Herzegovina seeks US energy investment and reforms

Bosnia and Herzegovina is facing various economic and structural challenges. In Washington, Darijana Filipović discussed increasing US investment in the energy sector, specifically focusing on the South Gas Interconnection. This project aims to connect the Bosnian gas system with Croatia, allowing access to LNG from the Krk terminal and reducing reliance on Russian gas via Serbia. The project is expected to be built by AAFS Infrastructure and Energy.

Domestically, the business community in the Federation of BiH is calling for urgent fiscal reforms, including reducing labor burdens, simplifying the tax system, and modernizing employment services. Employers highlight that approximately 2,800 different taxes and fees currently burden the economy. Meanwhile, labor statistics show that workers in Bosnia and Herzegovina work an average of 40.9 hours per week, significantly higher than the EU average of 35.9 hours.

Political tensions persist regarding EU integration. German Ambassador Alfred Granas expressed skepticism about the sincerity of local politicians regarding the European path, noting that political blockades have led to the loss of millions in EU aid. Additionally, discussions continue regarding the appointment of a new High Representative for Bosnia and Herzegovina, with ongoing efforts to find a consensus European candidate.