LAJCAK AND BELKA DISCUSSED POLITICAL SITUATION IN BOSNIA

SARAJEVO, Bosnia (June 3,2008) – The International Community's High Representative and EU Special Representative in Bosnia (HR/EUSR), Miroslav Lajčák, met yesterday with Executive Secretary of the UN Economic Commission for Europe,Marek Belka, to discuss the current political and economic situation in Bosnia.

Both HR/EUSR Lajčák and Secretary Belka reaffirmed importance of Bosnia's full commitment to fulfilling the five objectives and two conditions that need to be met before OHR transition.

Lajčák, briefed the Secretary Belka on political situation and future challenges ahead of Bosnia where he reported that the Stabilisation and Association Agreement (SAA) between Bosnia and the EU will be signed on 16 June. When Bosnia signs the SAA, one of the conditions for transition of the Office of the High Representative (OHR) to the Office of the EU Special Representative (EUSR) will be met. The other condition – a positive assessment of the situation in Bosnia will also have to be achieved.

With regard to the economic situation in Bosnia Lajčák emphasized that adoption of Platform for Action at OHR’s Economic Conference of 16 October 2007 has triggered progress on some long-standing economic reforms. Also, the Bosnian State Parliament is expected to adopt the Law on the National Fiscal Council, a European Partnership requirement. Some progress is evident in the negotiations on the issue of indirect tax revenues allocation, although there has been no final agreement yet.
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