This is his first report to the UN since he stepped in as the international peace overseer in Sarajevo two months ago.
Despite efforts by some political leaders to embark on the process of dialogue and reach compromises, nationalistic rhetoric poses a challenge to the country's sovereignty, territorial integrity and constitutional order, the Austrian diplomat said.
In this context Inzko criticised permanent attacks launched by the Serb entity against the Bosnian state institutions, powers and jurisdiction, including attacks against his powers as the international representative.
He said that the EUFOR, the European Forces in Bosnia and Herzegovina, remained a key factor of stability in that country in the view of the fragile political situation.
Inzko said the some progress had been made in relation to the adoption of constitutional amendments which include the district of Brcko into the Bosnian constitutional order and in adoption of strategies for reforms in the judiciary.