In a resolution adopted at a plenary session in Strasbourg, the European Parliament called for the continuation of negotiations on institutional reforms which are currently on hold.
MPs said the main objectives must be the inclusion of values such as democracy, human rights, and equality.
They called on the Council of the EU and the European Commission to actively support institutional reforms in Bosnia.
The European Parliament also expressed satisfaction with the opening of negotiations on a Stabilisation and Association Agreement between Bosnia and the EU in November 2005.
The pace of negotiations will depend on the ability of all three peoples in the country to reach agreement on the schedule and implementation of the reforms, the resolution said.
It stressed that full cooperation with the UN war crimes tribunal in The Hague must be a preliminary condition for closer relations with the EU.
The European Parliament said that the success of the reforms would depend on the ability of local officials to lead the country.
It also called for strengthening regional cooperation in border control and expressed hope that the visa regime would gradually become more flexible.