The PIC monitors the implementation of the Dayton peace agreement that ended the 1992-1995 war in Bosnia and Herzegovina, and consists of the most influential Western countries, Russia and Turkey, which at the same time represents the Organisation of the Islamic Conference.
"Economic and political reforms, with full respect for the rule of law, are key elements in the country's agenda for recovery – and members of the Steering Board stand ready to help the new authorities implement that agenda," the international community's High Representative Valentin Inzko said at a press conference, explaining the conclusions of the PIC Steering Board, which convenes every six months to analyse the situation in the country.
Inzko said that this time the conclusions were made unanimously, which was seldom the case before because Russia mostly had certain reservations, and that this was proof of consensus within the international community about the need for reform in Bosnia and Herzegovina.
Inzko noted that Bosnia and Herzegovina was now in quite a different position after the Stabilisation and Association Agreement with the EU came into force on 1 June, opening up the possibility of EU membership. He, however, warned that this was not a guarantee that it would actually happen and that serious work needed to be done in the coming years.
The Austrian diplomat said that the reforms were "sensible steps" that should ensure general stabilisation of the situation in the country, economic recovery and job creation. "I hope the (political) leaders will seize the opportunities that exist, and start delivering benefits to citizens," he said, adding that the PIC Steering Board was "cautiously optimistic" that the authorities would act more effectively.
Inzko said that the Steering Board also addressed the behaviour of some Bosnian Serb politicians "who have sought to accumulate political capital by challenging the rule of law," alluding to Republika Srpska President Milorad Dodik. He stressed that Bosnia and Herzegovina's territorial integrity and sovereignty are guaranteed by the Dayton peace agreement. "Those who believe otherwise are deluding themselves and they are deluding those whom they aspire to lead," he added.
Inzko said that the next step the country's authorities were expected to take was to adopt a reform plan in keeping with the joint statement signed in February by the leaders of the most important political parties in Bosnia and Herzegovina.
The plan was expected to be signed by the Chairman of the Council of Ministers, Denis Zvizdic, and the heads of government of the country's two entities, the Bosniak-Croat entity known as the Federation and the Serb entity called Republika Srpska (RS), on Thursday in the presence of EU Commissioner for Neighbourhood Policy and Enlargement Johannes Hahn. On Wednesday afternoon no one in Sarajevo was sure whether the EU commissioner was coming or not because of problems that had arisen with the RS government.
RS officials demand that before the plan is signed the lower chamber of the state parliament approve a EUR 18 million loan from the World Bank for RS. The move is opposed by the political bloc led by the Serb Democratic Party who believe that the government controlled by RS President Milorad Dodik will use the money to patch up budget holes and the loan would put additional financial strain on the entire entity.
The reform plan was adopted by the Council of Ministers, the country's government, on Wednesday and by the Federation entity's government on Tuesday, while the RS government has reservations.
Dodik said on Wednesday that he personally was against the reform plan and that RS would not sign the document in the form expected by Brussels. "I am the President of Republika Srpska and I represent it. I'm not giving my consent for it, whatever anyone might think," he told the press in Banja Luka.