During the ceremony, Schwartz-Schilling's predecessor, Briton Paddy Ashdown, said that he "cannot think of anyone better to take on this job".
Schwartz-Schilling, an official of the German Christian-Democratic Union (CDU) who used to be a minister in the government led by Helmut Kohl, was appointed by the Peace Implementation Council in Paris last December.
After the 1994 Washington agreement was signed, laying foundations for the establishment of a Croat-Muslim federation in Bosnia, the German politician was an international mediator in that entity and later for the entire Bosnia-Herzegovina.
Schwartz-Schilling announced at today's ceremony that he would continue with the reforms which Ashdown launched with the aim of integrating Bosnia with Europe.
Schwartz-Schilling is the fifth High Representative. The three High Representatives before Ashdown were Wolfgang Petritsch of Austria, Carlos Westendorph of Spain and Carl Bildt of Sweden.