Serbia 2020 Draft Strategy announced

Serbia will reach victory in the coming years if it decides to tackle the financial crisis and the everchanging globalized world, the strategy states.The requirements needed to achieve the goals set by the strategy comprise infrastructure construction, a spatial development plan and an institutional reform, which includes reforming the constitution, legal system, judiciary, public administration and security.

Serbia's development in the next decade should include all aspects of society and economy, raise the level of inclusion for all layers of society, define a clear social policy and allow the country to become a factor of stability and security in the region, according to a draft strategy, entitled Serbia 2020, that was posted on the Serbian president's website. "In order to achieve that, the political, legal and business environment needs to change, so it would facilitate economic growth, better standard of living, rule of law and citizen rights." the document states.

The requirements needed to achieve the goals set by the strategy comprise infrastructure construction, a spatial development plan and an institutional reform, which includes reforming the constitution, legal system, judiciary, public administration and security. "Our people have to think, learn and work for the 21st century. To change Serbia, we must change ourselves. Our long-term vision is clear, but to achieve the goals set for 2020, we have to begin implementing this strategy in 2011 and check its progress regularly,". Serbia will reach victory in the coming years if it decides to tackle the financial crisis and the everchanging globalized world, the strategy states.

News source: EMG.rs link: article

EU-Russia summit to discuss 'strategy', WTO bid

Russian President Dmitry Medvedev is coming to Brussels next week (7 December) to discuss "strategy" with EU leaders, including the country's aspirations to join the World Trade Organisation (WTO). But a number of teething problems still remain on the agenda, judging from an internal EU document seen by EurActiv. Vladimir Chizhov, Russia's ambassador to the EU, said the summit would concentrate on "strategic things" such as the coordination of exit strategies from the economic crisis, climate change, positions regarding Iran's nuclear programme or the Middle East peace process.

The meeting, to be held on Tuesday (7 December), will see Medvedev meet European counterparts Herman Van Rompuy, the European Council president, and José Manuel Barroso, president of the European Commission. Towards an EU-Russia 'common market'. Speaking to journalists on Wednesday (1 December), Chizhov indicated that the Russian side was interested in discussing Prime Minister Vladimir Putin's proposal for a "harmonious community of economies from Lisbon to Vladivostok". The proposal, made during Putin's visit to Germany on 25 November, was dubbed an EU-Russia "common market" by the press. Chizhov said the first step would be for Russia to join the World Trade Organisation (WTO), which has been on the table for 16 years.

Then, Moscow and Brussels would sign a new EU-Russia basic treaty, replacing an antiquated Partnership and Cooperation Agreement signed in 1994. The third step, he said, was to start discussions about a free trade area.

German Chancellor Angela Merkel had expressed doubt about establishing a free trade area with Russia, saying that the initiative was "not timely", since Moscow was putting in place a customs union with its ex-Soviet neighbours Belarus and Kazakhstan. But Chizhov said that Merkel had not rejected the idea, insisting that the creation of the customs union did not contradict WTO rules and that each of the three countries would pursue individual WTO bids. The Russian envoy gave assurances that a range of outstanding problems, such as the EU's green light for Russia's WTO accession, would be sorted out at expert level, even before the leaders had met.

News source: EurActiv link: article

Key findings of the progress report on Croatia

On 9 November, the Commission adopted its 2010 Enlargement package. It comprised a Strategy paper, the Opinions on the membership applications by Montenegro and Albania and seven Progress Reports on the potential candidate countries and on the candidate countries including Croatia. On Croatia, the Commission concluded that the good overall progress achieved by Croatia in numerous fields means that negotiations have entered their final phase. Negotiations should be concluded once Croatia has met the outstanding benchmarks, in particular in the field of judiciary and fundamental rights.

Ahead of the adoption of the Report, Commissioner Füle stated: "EU membership for Croatia is in sight. The last 100 metres in a marathon are always also the most difficult. The country has to be able to fully take on board, as from day one of accession, the membership rights and obligations. We trust the Croatian politicians and the society at large to pull their efforts together to deal with the remaining reforms necessary to achieve this objective soon."

Political criteria

Croatia continues to meet the political criteria. Progress has been made on the benchmarks associated with Chapter 23, including efforts to strengthen the independence of the judiciary by adopting new legislation and reducing case-backlogs. The Office for the Fight against Corruption and Organised Crime (USKOK) remains active and the first high level political cases are before the courts. Croatia has contributed to improved bilateral relations in the region. Efforts must continue in particular in the fields of judicial and administrative reforms, minority rights, refugee return and war crimes. Full cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) remains a requirement for Croatia's progress throughout the accession process, in line with the Negotiating Framework. Judicial reform has continued, however remaining challenges include the application of objective and transparent criteria for the appointment of judges and prosecutors, the further reduction of the backlog of cases and the length of proceedings as well as improved enforcement of decisions. Corruption remains prevalent in many areas. The new structures and tools have not yet been tested fully in practice, particularly the courts' ability to handle the increasing number and complexity of cases. Stronger political commitment and improved coordination between the key stakeholders is needed to achieve tangible results in the area of public administration reform. The Commission will closely monitor Croatia's progress in the field of judiciary and fundamental rights and take stock of the situation in the first quarter of 2011.

Economic criteria

Croatia is a functioning market economy. It should be able to cope with competitive pressures and market forces within the Union, provided that it continues to implement its comprehensive reform programme with determination in order to reduce structural weaknesses. Croatia's economy was severely affected by the global economic and financial crisis. Like many other countries, Croatia fell into recession in the first quarter of 2009 and there were no clear signs of a recovery by mid-2010. Unemployment, public deficit and debt have increased significantly. External indebtedness rose further and remains a vulnerable aspect of the economy. Monetary stability was preserved by the policies of the central bank and the financial sector weathered the crisis relatively well. The Economic Recovery Programme has given economic policy a medium-term orientation, but this needs to be implemented effectively. The labour market remains rigid. The investment climate continues to be hampered by regulatory burdens and para-fiscal taxes. Further efforts are needed to contain the rising deficit and to increase the efficiency of public spending. Improving the budgetary process and discipline remains a key challenge in order to achieve medium-term fiscal sustainability.

EU Legislation

Croatia's preparations for meeting EU requirements are well advanced. There has been further progress in all key areas, including in those chapters where the level of alignment with EU rules was already high. However, additional efforts are needed, in particular to strengthen further the administrative capacity necessary for the proper implementation of the EU legislation, and standards, as well as the absorption of EU funds.

News source: EU Press Room link: article

Key findings of the Opinion on Montenegro

On 9 November, the Commission adopted its 2010 Enlargement package. It comprised a Strategy paper, the Opinions on the membership applications by Montenegro and Albania and seven Progress Reports on the other candidate countries and potential candidates. On Montenegro, the Commission concluded that Montenegro is ready to become a candidate country to EU membership, while further reforms are needed in a number of key areas, as set out in the opinion, before the country is ready to start accession negotiations.

Ahead of the adoption of the Report, Commissioner Füle stated: "I commend Montenegro's efforts in the last 12 months. They brought to the country the status of a candidate country. The sooner the country proceeds with the necessary reforms, the sooner it will be ready to move to the negotiating table with the EU".

Political criteria

Montenegro has continued to make progress in addressing the political criteria. It improved its legal framework and strengthened its administrative and institutional capacity. Regarding human rights and the respect for and protection of minorities, the legal and policy framework is largely in place and broadly corresponds to European and international standards. The institutional framework is largely adequate. However, there are gaps in implementation. Montenegro needs to effectively implement and enforce legislation in all fields. Increased awareness and sensitivity of the administration, police and the judiciary for applying EU standards in this field are needed. Main concerns are related to the following areas: effectiveness of anti-discrimination policies, freedom of expression and government relations with civil society as well as the situation of displaced persons from Croatia, Bosnia and Herzegovina and Kosovo. Furthermore, Montenegro needs to intensify its efforts to consolidate rule of law, in particular in the fight against corruption and organised crime, which remain serious problems. Montenegro plays a constructive role in maintaining regional stability and fostering good neighbourly relations with other Western Balkan and EU countries.

Economic criteria

Montenegro has taken important steps towards establishing a functioning market economy. To be considered as a functioning market economy Montenegro needs to further address internal and external unbalances, as well as weaknesses, notably in the financial sector and the functioning of labour markets. To be able to cope in the medium term with competitive pressure and market forces within the Union, Montenegro needs to continue implementing reforms and reducing structural weaknesses. Montenegro achieved a good track record in the implementation of economic reforms and a broad domestic consensus on the fundamentals of economic policy. The free interplay of market forces has been developing in the last decade through privatisations and the abolition of controls on prices. Foreign investments were attracted by the improved business environment. The Montenegrin economy remains very open and the level of trade and investment integration with the EU and the Western Balkan region is high. However, the global crisis unveiled significant internal and external imbalances exposing the country and threatening macroeconomic stability. The crisis also revealed vulnerabilities in the regulation and supervision of the banking sector, calling for critical recapitalisation of banks. Persisting unemployment points to weaknesses in the education and vocational training systems, as well as to some labour market rigidities. The country has a still insufficient energy and transport infrastructure. Persisting weaknesses in the rule of law and the large informal sector negatively affect the business environment.

EU Legislation

Montenegro has made further progress in aligning with European standards, particularly in some areas of the internal market, trade-related provisions, customs and taxation. However, additional efforts are needed to align with the EU legislation and to implement it effectively in the medium term as regards freedom of movement for workers, services and capital, public procurement, competition, financial services, information society and media, transport policy, energy, economic and monetary policy, consumer and Health Protection. The country faces major challenges in implementing and enforcing legislation. Administrative and judicial capacities remain overall limited and the country will need to make sustained efforts to strengthen them in order to assume the obligations of membership in the medium-term.

News source: EU Press Room link: article

Key findings of the 2010 progress report on Serbia

On 9 November, the Commission adopted its 2010 Enlargement package. It comprised a Strategy paper, the Opinions on the membership applications by Montenegro and Albania and seven Progress Reports on the other candidate countries and potential candidates, including on Serbia. On Serbia, the report highlights the country's progress on its European path. In line with 25 October 2010 Council Conclusions, the Commission has launched the preparatory work for the publication in 2011 of an opinion on Serbia's membership.

Ahead of the adoption of the Report, Commissioner Füle stated: "Serbia's place is in the EU. The door is open, but not unconditional. The momentum for reforms should not be missed. Serbia should redouble its efforts to fully cooperate with ICTY. We look at Serbia as a key country for the reconciliation and positive regional cooperation in the Western Balkans".

Political criteria

Serbia has made progress meeting the political criteria. Judicial reform has continued but there were serious shortcomings in the re-appointment procedure of judges and prosecutors.

Additional efforts are required regarding public administration reform and the fight against organised crime and corruption. Despite the active on-going cooperation of Serbia with the International Criminal Tribunal for the former Yugoslavia (ICTY), the two remaining ICTY fugitives, Ratko Mladić and Goran Hadžić, are still at large. The UN General Assembly adopted on 9 September a joint resolution tabled by Serbia and co-sponsored by the EU as a follow up to the International Court of Justice opinion on Kosovo1. The resolution aims at opening the way for a process of dialogue between Pristina and Belgrade to promote cooperation, achieve progress on the path to the European Union and improve the lives of the people.

Economic criteria

In the context of the economic crisis, further progress towards establishing a functioning market economy has been limited. Serbia needs to make more efforts in restructuring its economy so as to cope in the medium-term with the competitive pressures and market forces within the European Union. The economy picked up in 2010, despite being severely hit by the economic and financial crisis. Strong exports and the adoption of timely and appropriate measures in agreement with the IMF where key in re-establishing macroeconomic stability.

However, Serbia has further postponed the reforms to tackle structural shortcomings. The labour market has continued to deteriorate. Privatisation of the socially-owned companies has back-paddled following repeal of numerous sale contracts. Privatisation of the state-owned companies has been further delayed. The business environment continues to be constrained by the burdensome administrative procedures and the weak rule of law. Furthermore, deficiencies in competition and infrastructure bottlenecks remain barriers to doing business.

EU Legislation

Serbia has further progressed towards aligning its legislation to European standards. Serbia has also continued to implement the Interim Agreement provisions and made further progress towards complying with the Stabilisation and Association Agreement (SAA) requirements in a number of areas including agriculture, science and research, and statistics. Significant progress was achieved on the fight against organised crime with good results in high-profile investigations against organised crime groups. However, further efforts are necessary to bring the legislation and the policies in line with European standards. Implementation and enforcement of the adopted EU-related legislation need to be ensured.

News source: EU Press Room link: article

Key findings of the progress reports on the former Yugoslav Republic of Macedonia

On 9 November, the Commission adopted its 2010 Enlargement package. It comprised a Strategy paper, the Opinions on the membership applications by Montenegro and Albania and seven Progress Reports on the other candidate countries and potential candidates, including on the former Yugoslav Republic of Macedonia. On the former Yugoslav Republic of Macedonia, the Commission concluded that the country continues to sufficiently fulfil the political criteria. Following substantial reforms in 2009, further progress has been made in key reform areas although at an uneven pace.

Following the adoption of the Report, Commissioner Füle stated: "This report confirms that the country is ready to start accession negotiations. These negotiations will help to tackle a number of important challenges such as strengthening the rule of law and public administration as well as increasing competitiveness and reducing unemployment. I hope the name issue can be resolved and that we may start this process which is so crucial for the country's future. "

Political criteria

The former Yugoslav Republic of Macedonia continues to sufficiently fulfil the political criteria. Overall, the governing coalition is stable and there is cooperation between political forces. Some progress has been achieved as regards the reform of the parliament, the police, the judiciary, public administration and cultural and minority rights. However, further efforts are needed in areas related to the political criteria, in particular as regards independence of the judiciary, fight against corruption, reform of public administration and freedom of expression in the media. Political dialogue needs to be strengthened.

Economic criteria

The country made further progress towards becoming a functioning market economy. In order to enable it to cope over the medium term with competitive pressure and market forces within the Union, it needs to continue reforming and strengthening its legal system and to implement its reform programme to reduce the structural weaknesses. The economy contracted slightly in 2009 due to resilient private capital inflows and a stable public sector demand. Monetary and fiscal policies were stability oriented. The country's external balances improved, reflecting a slight recovery in exports and a drop in imports. Structural reforms have continued, albeit very high structural unemployment persists, in particular among young people and the less educated. Some improvements have been achieved with respect to addressing institutional weaknesses and to reducing barriers to market entry and exit, but some deficiencies in the rule of law continue to have a negative bearing on the business climate and on Foreign Direct Investment inflows.

EU Legislation

Further progress was made in aligning legislation, policies and administrative capacity with the EU, in particular as regards the free movement of goods, company law and financial services. Good progress was also made on alignment with EU policies in the area of justice, freedom and security. Efforts to address the new rise in asylum applications in EU Member States are ongoing.  Less progress has been achieved in other areas such as public procurement, information society and media as well as social policy and employment. Sustained efforts are needed to strengthen administrative capacity for the implementation and enforcement of legislation.

News link: EU Press Room link: article

Key findings of the Opinion on Albania

On 9 November, the Commission adopted its 2010 Enlargement package. It comprised a Strategy paper, the Opinions on the membership applications by Montenegro and Albania and seven Progress Reports on the other candidate countries and potential candidates. On Albania, the Commission concluded that, while good progress was made during the last 12 months, further reforms are needed in a number of key areas, as set out in the opinion, before the country can be ready to start accession negotiations.

Ahead of the adoption of the Report, Commissioner Füle stated: "We share with Albania the common objective to welcome it one day in the EU family. Albania has come a long way already on the EU integration path. The road is long and difficult, and main challenges lie in Albania itself. I hope Albania will find the political determination necessary to overcome these obstacles and to build a true democratic society, with a strong market economy and a body of legislation fully aligned with that of the EU. This will allow us to meet our joint objective and to contribute to a better life for the citizens of Albania."

Political criteria

Albania has made progress towards fulfilling the Copenhagen political criteria. As regards the functioning of democratic institutions and the civil service, it has established a constitutional and legislative framework in line with European standards. The 2009 legislative elections met most international standards and were an improvement over past elections, even if some deficiencies were identified. Albania has in recent years strengthened rule of law, in particular by conducting legislative and institutional reforms of the judiciary and in the fight against corruption. Law enforcement bodies have been strengthened. The country's legal and institutional framework on human rights is largely in place and broadly corresponds to European standards. However, further efforts will be required to address shortcomings in the political field. The effectiveness and stability of Albania's democratic institutions, notably parliament, is not sufficiently achieved. Political dialogue is confrontational and does not respect the democratic spirit, not least because of the political stalemate since the June 2009 elections. Shortcomings identified in the last elections have not yet been translated into an electoral reform, needed for upcoming elections. Public administration remains weak and politicised. A comprehensive and coordinated judiciary reform strategy is pending. Enforcement of rule of law remains deficient. A solid track record of effective fight against corruption and organised crime needs to be developed. Implementation of legislation and policy instruments in the field of human rights and protection of minorities is still insufficient.

Albania plays a constructive role in maintaining regional stability and fostering good neighbourly relations with other Western Balkan and EU countries.

Economic criteria

Albania has taken important steps towards establishing a functioning market economy. To become a functioning market economy, Albania needs to further strengthen governance, improve the performance of the labour market, remove uncertainties in the field of property rights and step up law enforcement. Furthermore, in order to enable it to cope over the medium term with competitive pressure and market forces within the Union, Albania needs to strengthen its physical infrastructure and human capital and pursue further structural reforms.

There is a good track record in the implementation of economic reforms and broad consensus on the fundamentals of economic policy. Albania achieved a degree of macroeconomic stability sufficient enough to allow economic operators to make decisions in a climate of predictability. The right macroeconomic policy mix in the past years generated growth rates exceeding 5% despite the crisis. However, fiscal consolidation has been reversed recently and the high level of public debt remains a source of macro-financial vulnerability. A narrow export base and public investment have led to a significant and persistent current account imbalance. The existence of widespread informal work arrangements continues to severely distort the labour market and unemployment remains high, reaching 13% in 2009. Weaknesses in the rule of law hamper the business environment. Infrastructure requires further investment.

EU Legislation

Albania has made significant efforts to align its legislation with the EU legislation, particularly concerning standardisation, competition and public procurement. The regulatory framework for business has been improved and further alignment achieved in the fields of customs and taxation. Considerable efforts were made to strengthen the fight against organised crime (in terms of legislative framework, investigative capacity, resources).

However, Albania still needs to make substantial progress in other fields such as, environment, intellectual property, transport, agriculture, food safety, social policy and audio-visual. Albania needs to demonstrate more concrete results in the fight against drugs, human trafficking and money laundering.

News source: EU Press Room link: article

Key findings of the 2010 progress report on Kosovo

On 9 November, the Commission adopted its 2010 Enlargement package. It comprised a Strategy paper, the Opinions on the membership applications by Montenegro and Albania and seven Progress Reports on the other candidate countries and potential candidates, including on Kosovo*. On Kosovo*, the conclusion was that, given Kosovo's strengthened commitment to the European agenda and policy reforms, the Commission is committed to launch a visa liberalisation dialogue shortly, to assist Kosovo to put into place the conditions needed for a possible trade agreement with the EU, and to propose the opening to Kosovo's participation in relevant Union programmes, such as ''Europe for Citizens'' and ''Culture''.

Ahead of the adoption of the Report, Commissioner Füle stated: "We are as committed as ever to Kosovo's European perspective. This goal is within reach, provided Kosovo continues with vital reforms and engages without delay, constructively and pragmatically, in regional cooperation. I hope today's report will provide a useful roadmap for Kosovo's preparation for its European perspective".

In July, the International Court of Justice (ICJ) issued an advisory opinion, which concluded that Kosovo's declaration of independence did not violate general international law or Security Council resolution 1244 (1999). In September, the UN General Assembly adopted a joint resolution tabled by Serbia and co-sponsored by EU Member States as a follow up to the ICJ opinion. The resolution aims at opening the way for a process of dialogue between Pristina and Belgrade to promote cooperation, achieve progress on the path to the European Union and improve the lives of the people. The EU stands ready to facilitate this dialogue.

Political criteria

Kosovo has made progress as regards the political criteria in a number of important areas. The decentralisation process has advanced significantly. Local elections were held at the end of 2009. Cooperation with the EU rule of law mission (EULEX) has improved. This trend needs to continue. However, the capacity of the public administration remains weak. The judiciary is not functioning effectively. The rule of law remains a serious concern. Efforts to tackle corruption, organised crime and money-laundering need to be strengthened. Decentralisation can only be completed with the participation of local communities.

Economic criteria

Kosovo has made little progress towards establishing a functioning market economy. Considerable reforms and investments are needed to enable it to cope over the long term with competitive pressure and market forces within the Union. Kosovo’s economy continued growing in 2010. The use of the euro, the low levels of external debt and the narrow exports' base have limited the economy's exposure to the economic crisis. The banking sector continued to expand and remained stable and profitable. However, deficiencies in policy formulation and implementation increased the already high uncertainty in the economy. Unemployment remains very high particularly among the young. The weak rule of law, corruption, uncertainty over property rights and high interest rates continue to impact negatively on the business environment and prevent economic development. The informal sector remains an important challenge.

EU Legislation

Progress is mixed in aligning Kosovo's legislation with European standards. The legal framework has been developed further in the areas of customs, taxation, free movement of goods, statistics, policing and anti-terrorism. Approximation is at an early stage as regards competition, intellectual property, environment, energy, agriculture and food safety, integrated border management and money-laundering. Alignment with European standards remains limited in the areas of public procurement, financial control, drug-trafficking, organised crime and personal data protection.

News source: EU Press Room link: article

Key findings of the 2010 progress report on Bosnia and Herzegovina

On 9 November, the Commission adopted its 2010 Enlargement package. It comprised a Strategy paper, the Opinions on the membership applications by Montenegro and Albania and seven Progress Reports on the other candidate countries and potential candidates, including on Bosnia and Herzegovina. On Bosnia and Herzegovina, the conclusion was that the lack of a shared vision by political leaders on the direction of the country continued to block key reforms and further progress towards the EU. Initial steps need to be taken to align the Constitution with the European Convention on Human Rights and to improve the efficiency of institutions. The country needs to be in a position to adopt, implement and enforce the laws and rules of the EU in order to pursue its European integration strategic goal.Ahead of the adoption of the Report, Commissioner Füle stated: "We are very concerned about the little progress made in the country's European integration agenda. I call on all political leaders in Bosnia Herzegovina to leave past divisions where they belong, in the past, and to invest their energies and their resources for a shared vision of a European future for the country".

Political criteria

Bosnia and Herzegovina has made limited progress in addressing the political criteria. The general elections of October 2010 broadly met international standards for democratic elections. Some progress related to the rule of law, notably in areas such as border management and migration policy, was made through reforms aimed at meeting visa liberalisation requirements. The administrative capacity of the Parliament improved but coordination with the Council of Ministers and with the Entities remained poor. A single state-level Ombudsman is functioning well. Financial resources for the implementation of the Roma Strategy have been increased.

Important steps were also taken to promote regional reconciliation, notably in the area of support for refugee return and judicial cooperation with neighbouring countries. The mandates of international judges and prosecutors dealing with war crimes were extended. Prosecution of war crimes by the state court has continued to be satisfactory, but needs to improve in the Entities and Cantons. The Anti-corruption agency has been established has been appointed. Over the last few years, cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) has remained satisfactory.

The country has made very little progress towards meeting the requirements for the closure of the OHR. The domestic political climate during the pre-electoral period was dominated by nationalistic rhetoric. The role played by ethnic identity in politics has continued to hamper the functioning of the executive, the legislative and the judiciary as well as the country's overall governance. The process for changing the Constitution to comply with the European Convention on Human Rights (ECHR) has not been initiated. The State-level census law was not adopted. The political pressure on the judiciary has continued and the backlog of cases remains very high. Implementation of the Justice reform strategy and of the National war crimes strategy was insufficient. Cases of intimidation against journalists increased. Separation of children along ethnic lines within schools remains an issue. Widespread corruption remains a serious problem.

Economic criteria

Bosnia and Herzegovina has made little further progress towards a functioning market economy. Considerable further reform efforts need to be pursued with determination to enable the country to cope over the long-term with the competitive pressures and market forces within the Union. Implementation of the Stand-By Arrangement with the International Monetary Fund has been broadly satisfactory. Confidence in local banks has returned. Some limited improvements in the business environment can be reported, in particular regarding business registration.

The fiscal situation in Bosnia and Herzegovina remains difficult, especially in the Federation. Commitment to the agreed fiscal adjustment and structural reform measures, as well as their implementation, remains weak. Privatisation, restructuring of public enterprises and the liberalisation of network industries did not advance. The high and poorly targeted social transfers reduce the propensity to work, further highlighting the need for reform of the social benefits system. Unemployment continued to be very high and the informal sector remains an important challenge. The business environment is affected by administrative inefficiencies and the weak rule of law. Progress towards the creation of a single economic space within the country has been very limited.

EU Legislation

Some progress has been made in aligning the country's legislation, policies and capacity with European standards in areas such as free movement of capital, intellectual property, education and research, transport, financial control, and a number of justice, freedom and security-related matters. Bosnia and Herzegovina now needs to step-up its efforts at implementation.

Progress remains insufficient in other areas, such as free movement of goods, persons and services, customs and taxation, competition and state aid, public procurement, employment and social policies, agriculture and fisheries, environment, energy and information society and media. Sustained efforts in sensitive areas such as the fight against corruption and organised crime are also a priority.

News source: EU Press Room room link: article

Preparations for new export strategy Bosnia and Herzegovina

The ministry of foreign trade of BH and the country’s Export Council are about to start preparations for an export strategy with support from the EU’s support development project EUEXPRO2.

In this process, active roles are expected from private and public sectors in order to ensure full information on exporters’ needs and proposals. There will be total 11 work groups, and six of these will be dealing with particular industries (forest industry, agriculture and food industry, tourism, metalworking, construction and power generation).

News source: Limun.hr link: article

Commission to unveil €1trln energy strategy for 2020

The European Commission will present on Wednesday (10 November) its energy strategy for the coming decade, calling for investment of around €1 trillion to secure the bloc's energy needs in a sustainable way.  The new strategy will set out priorities for 2020 in order to deliver on the EU's energy and climate goals. This will require the EU to spend €1 trillion over the next decade on infrastructure, new technologies and electricity storage, according to a draft, seen by EurActiv.

"In the next decade, investment in energy, both to replace existing resources and in order to meet increasing energy requirements, will oblige European economies to arbitrate among energy products which, given the inertia of energy systems, will condition the next 30 years," it says. The draft strategy identifies energy efficiency as its first priority, arguing that it needs to be mainstreamed into all relevant policy areas. The details will be set out in the new energy efficiency plan, which is scheduled to be presented next spring.

The EU has set itself a 20% energy savings objective for 2020, but measuring progress will require the establishment of "a set of fair and measurable objectives," according to the document. The national energy efficiency action plans drawn up by member states will become the annual reporting tool, it explains. Until now, national efficiency plans have failed to exert the same influence as similar plans on renewable energy, mainly because the targets are not legally binding. The Commission seeks to tap into the energy savings potential of Europe's existing building stock. Renovation rate should be accelerated by investment incentives and innovative financial instruments like revolving funds, it argues, promising to address the problem of split incentives between tenants and owners.

Energy savings in transport, a sector that emits a fifth of Europe's greenhouse gas emissions, will be harnessed by introducing energy efficiency standards for all vehicles and a "robust car labelling system," the draft states.  The public sector will play a crucial role as energy efficiency criteria should "become conditionality obligations in all spheres, notably for allocating public funds," according to the paper. Industrial companies, on the other hand, should be encouraged to make use of energy audits. A dedicated support mechanism should be created for SMEs, it adds. "Efficiency must become a profitable business in itself, leading to a robust internal market for energy saving techniques and practices and commercial opportunities internationally," the paper says.

News source: EurActiv link: article