The Price of EU Membership: Implications of the Stabilisation and Association Agreement to Bosnia and Herzegovina's Policy Reform

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The development of EU accession processes in the Western Balkan states would alter Bosnia's reluctance to pursue tough reforms, otherwise the economy loses a good chance to achieve sustainable development, if not to survive. As the neighbouring countries' EU accessions become a matter of reality and hence EU boundary will emerge just in front of Bosnia, the time is running out to let the Bosnian exports comply with various EU standards. This is not a mere technical issue in trade facilitation, but has significant implications to domestic political process. However, there is a risk of moral hazard in Bosnia to pursue reforms. To avoid the risk of 'waiting game' between Brussels and Sarajevo, a more proactive interventionist approach may want to be considered for the EU.

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