Analysis 15 May 17

Ruling Coalition Breakups Heighten Bosnia’s Agony

The de-facto collapse of the ruling coalitions at state level and the Federation Entity are pushing Bosnia deeper into political and economic turmoil.

Srecko Latal, Danijel Kovacevic
Sarajevo, Banja Luka
Bosnian parliament. Photo: Anadolu

Bosnia’s state parliament last week failed in its fourth consecutive attempt to adopt a new excise law.

Adoption of the law was the gateway to a number of projects and programs financed by the International Monetary Fund, IMF, the European Bank for Reconstruction and Development, EBRD, the World Bank and other key lenders.

Bosnia could now lose international financial support that was due to bring in more than one billion euros over the next few years.

Failure to adopt this crucial legislation follows the effective breakup of the ruling coalition at state level, which has been facing growing troubles within and between its coalition partners for months.

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