EUROPEAN UNION INSISTS ON ORDER IN BOSNIAN FINANCIAL SECTOR

SARAJEVO, Feb 8 (Hina) - Ambassadors of the European Union's member states, accredited in Sarajevo, on Saturday warned local authorities about their obligation to introduce a single customs administration and a Value Added Tax (VAT) on the state level if they would like to see Bosnia-Herzegovina join Europe. #L# The international community's High Representative to Bosnia, Paddy Ashdown, has recently ordered the authorities of the country's two entities to reach an agreement by 19 February on the united customs administration and the introduction of the VAT. The main obstacle, however, seems to be the opposition of local Serb authorities to such moves. The EU ambassadors said in a statement that they would regard reforms in the financial system as an important sign and strong message that Bosnia is ready to embrace comprehensive reforms necessary for the country's admission into the Union. The payment of 60 million euros which the EU has earmarked as financial assistance to Sarajevo is made conditional on the said reforms, the diplomats reiterated in their statement. The ambassadors believe that the collection of customs duties and the VAT on the state level will prevent the embezzlement of high sums of money and tax evasion, which are currently two serious problems in the Bosnian financial sector. (hina) ms