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Belgrade Media 04 April 2019

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United Nations Office in Belgrade

Daily Media Highlights

Thursday 4 April 2019
LOCAL PRESS

• Dacic: We are far from the essence of the Brussels agreement (RTS)
• Belgrade considering launching of arbitrage over taxes (Novosti)
• Brnabic: Continuing work on regional connectivity despite all challenges (Tanjug/RTS/Beta)
• Western Balkan regional agreement signed to cut telephone roaming charges (N1/Beta)

REGIONAL PRESS

Bosnia & Herzegovina
• Cvijanovic interview: Organized society not possible without strong institutions (Srna)
• B&H Constitutional Court’s failure inadmissible (Srna)
• PDP decides not to participate in ruling authority at state level regardless of SNSD’s offer (RTRS)
• Radoncic: SBB B&H needs to deal with its relationship with SDA before even considering any cooperation (N1)
• RS government adopts draft amendments to Law on Police and Internal Affairs in order to establish police reserve unit (RTRS)
• Prosecutor’s Office of B&H: There will be no investigation against Kresic, Djakovic and Bandic in ‘Salafi’ affair (N1)
• MICT denies Karadzic’s appeal to life imprisonment (N1)
Montenegro
• Sehovic: Agreement on Future is a platform for the past (Pobjeda)
Republic of North Macedonia
• Dimitrov and Reeker: Looking forward to you joining NATO (Nezavisen vesnik)
• Poland to ratify North Macedonia’s NATO Accession Protocol (Nezavisen vesnik)
Albania
• Electoral reform, parliament 75 votes pro to postpone it (ADN)

INTERNATIONAL MEDIA SOURCES

• Chinese Balkans investments disrupt EU objectives, Commission warns (EurActiv)

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LOCAL PRESS

 

Dacic: We are far from the essence of the Brussels agreement (RTS)

 

It is difficult to tell whether large steps can be achieved in the Belgrade-Pristina dialogue in the near future, primarily over Pristina and the elections for the new EU administration, Serbian Foreign Minister Ivica Dacic told the morning news of Radio and Television of Serbia (RTS). He is certain that there will be no progress with taxes as long as the elections for the European Parliament end. “Haradinaj has hints from some European countries to wait with this. Some of them are saying this publicly. I am referring to Britain and Germany. I cannot say they are most responsible, but they are holding this balance, supporting Haradinaj compared to Thaci,” Dacic notes. He recalls that the US representatives were surprised with the situation that Haradinaj and Thaci cannot sit at one table. “There is one part of the US administration that is supporting this, especially in the Congress, but I don’t doubt that the Trump administration wishes agreement since this is a political point for them,” says Dacic. The Brussels agreement was signed six years ago after numerous and lengthy meetings, but Pristina still doesn’t think about forming the Community of Serb Municipalities. He says that Serbia had three requests when signing the agreement – for Kosovo not to be a member of international organization, for the police in the north to be Serbian in composition and for armed forces not to be able to arrive in the north without KFOR’s consent and the president of Serb municipalities in north of Kosovo. “A series of things occurred that departed from the essence of the Brussels agreement,” says Dacic, adding that now a new situation has been created where Serbia is requested to continue the dialogue despite everything. “I think that a robot humanoid would help in this situation since it could speak what is spoke constantly, there is nothing new here,” says Dacic. Asked whether there are chances for reaching an agreement with Pristina in the next five years, Dacic says that this cannot be discussed because everything will depend from the fact as to whether the international community will exert pressure on Pristina. “We advocate this in order to prevent a new conflict in Kosovo, in order to have regional stability and over Serbia’s progress in EU integration. But if they don’t want it, nothing will be better for them either,” said Dacic.

 

Belgrade considering launching of arbitrage over taxes (Novosti)

 

Belgrade is considering launching an arbitrage over the taxes introduced by Pristina, thus violating the CEFTA agreement, Novosti reports. This option has been on the table since 25 February when 90 days expired since the Serbian government sent an official request to the CEFTA Secretariat to hold direct consultation within the Joint Committee. At the moment when this request was submitted, Serbian Prime Minister Ana Brnabic announced the launching of proceedings before the Arbitrage Court if the problem is not resolved within three months, Novosti writes.

 

Brnabic: Continuing work on regional connectivity despite all challenges (Tanjug/RTS/Beta)

 

Serbian Prime Minister Ana Brnabic said at the opening of the Second Digital Summit of the Western Balkans that the government has set digitization and education as their absolute priorities in order to take advantage of all the chances that are being offered to us today.

The digital summit is important for several reasons: political, social and economic. Today, we send a message to the world to the world that, despite all the challenges and misunderstandings, we continue to work on regional networking, regional cooperation, implementation of previously agreed agreements and commitments, and opening new perspectives. The political moment is certainly not the best for a regional summit, and even less for the signing of new regional agreements. But the future of the region, the future of young people living in this region depends on the fact that in such difficult and complex situations, we bring primarily a political decision that we will continue to build the stability of the region, and not further collapse. That we will do our best to show our partners abroad that we are a stable and predictable partner, and to our citizens, that we are serious and responsible. To young people, that this region has a different, better perspective. To give them a signal that we are more responsible and that they should stay here and not look for our future somewhere else. One of the things that will mark this Summit is signing the Regional Roaming Agreement. This was a difficult decision for us at the time when Pristina imposes, for over four months now, 100% taxes on products from Central Serbia and Bosnia-Herzegovina, which are measures that do not correspond to the time in which we live and the spirit of cooperation that we are trying to promote, together with our partners, primarily from the EU, and which also represent a direct violation of the CEFTA agreement, which is the basis of all further regional relations and cooperation. The Regional Roaming Agreement is not just a document that defines how telecom operators will behave in the region. This agreement is much more than that. From the corner of Serbia, he shows the map of the road that we need to follow: that is more cooperation and more agreement, more mutual understanding in the interests of all citizens living in this region. Economically, this summit is important to show that our region follows the time and trends we live in. To understand very well, we not only live in a time that dictates and defines digital technologies and digital literacy, but rather that we live in the time of another, 4th Industrial Revolution, in which the entire Western Balkans has the opportunity, if we are smart, to be reasonable and dedicated, we compensate for the missed and change our destiny. Therefore, I am pleased that the Digital Summit of the Western Balkans gathered more than 4,000 accredited persons and 200 speakers in three stages this year, and that this room is too small today for all who wanted to come. Finally, I sincerely wish to thank our partners from the EU, and especially the people from the European Commission, above all Commissioner Mariya Gabriel and her team, on the effort, work, support and understanding, Brnabic concluded.

 

Western Balkan regional agreement signed to cut telephone roaming charges (N1/Beta)

 

A regional agreement was signed at the 2nd Digital Summit in Belgrade on Thursday cutting telephone roaming charges across the Western Balkans. The agreement was signed by officials from Albania, Bosnia-Herzegovina, Montenegro, North Macedonia and Serbia as well as Kosovo. Serbian Telecommunications Ministry State Secretary Tatjana Matic said after the signing ceremony that roaming costs would be lowered by 27 percent initially after July 1 and are expected to be revoked across the region as of July 1, 2021. According to Matic, the cost of a roaming call cannot be more than 22.4 Dinars plus VAT (1 Euro – 118 Dinars) a minute with text message costing no more than seven Dinars and a price no higher than 21.4 Dinars for data transfer.  She said roaming charges with Albanian will be lowered by 85 percent because that country had not signed a 2014 agreement with Serbia, Montenegro, North Macedonia and Bosnia-Herzegovina.  Matic said the European Union wanted the entire region to sign the agreement as a step towards the lifting of roaming charges with EU member states after 2021.

 

REGIONAL PRESS

 

Cvijanovic interview: Organized society not possible without strong institutions (Srna)

 

President of Republika Srpska (RS) Zeljka Cvijanovic stated in an interview with Srna that strong institutions can guarantee the maintenance of RS constitutional and legal capacity and that there can be no organized society without them. When asked how important it is to improve our security system and build trust in the Ministry of Internal Affairs (MUP) of RS, given that there have been many attacks on RS institutions, MUP included, and that Thursday is Police Day, the president pointed out she would firstly like to wish a happy Police Day to all MUP members and all citizens. “Our police are one of the most important pillars of RS and a guarantor of our security. That’s why it’s important to increase their salaries and continue to invest in their equipment and material and technical supplies. Every system has to be advanced, ours too, and we will keeping doing that. All polls over the years have shown that our police enjoy the most support from people. From the time when they were expected to defend RS in the war, through all the years of its further growth, MUP has always taken a special place in our people’s minds,” stressed Cvijanovic. When Srna recalled her statement that the issue of the formation of a new Council of Ministers was not a matter of life or death for RS and that Bosniak political parties overestimated the significance of the issue when it came to the SNSD, Cvijanovic confirmed it was not a matter of life or death for RS. “That is true, even if I wanted to be malevolent, I would say this game regarding the formation of the Council of Ministers definitely confirms what we’ve been saying and explaining about Bosnia and Herzegovina (B&H). B&H is a prisoner of nationalistic Sarajevo politics which won’t accept anything that is different. Their political philosophy means they define their political ambitions, while others fulfil them nodding their heads. In multi-national states with strong identities of constituent peoples, that does not go like that,” the RS President state in the interview. When asked if foreign representatives serving in B&H either helped or hindered the processes we faced and told she was the one who often had a critical approach to what they said or did, Cvijanovic said they, unfortunately, often created a black-and-white picture and failed to see that a realistic and balanced approach to everyone’s needs might change a lot for the better. “If you are pragmatic, then you draw benefit from what is realistically possible. You don’t waste years and decades on imagination. It is better to make many small steps and ensure some kind of movement than be stuck in one place and wait to make a leap you never will,” asserted the President. She said no one could convince her no foreign country could be more interested in having good inter-ethnic relations in B&H than B&H itself or that a foreign country would be more interested than the local politicians in working to improve the lives of their citizens. To elaborate on her statement that formation of the Council of Ministers is not a matter of life or death she still believes that procrastinating the formation incurs damage to both RS and the Federation of B&H, and B&H as a whole and that it all shows the lack of credibility and authority of the State, Cvijanovic explained it is normal to constitute authorities after elections so they can execute their duties in accordance with people’s expectations. “It is normal when you know your elections winners and have the required ‘mathematics’ that you finally do it, define your course of action and start doing your job. It is normal that under the circumstance of a blockage, it is the people in both entities who suffer, and that brings the reputation of B&H itself down. Besides, our path to the EU is also blocked and to make things worse, it is blocked by exactly those who like to talk about their commitment to the EU,” said Cvijanovic. When asked if it would really be realistic, like she said, that B&H might use an opportunity now to get candidate status now that the EU had its issues with Brexit, election of the European Parliament and formation of a new European Commission in the autumn, Cvijanovic said she thought it was realistic and that if we were pragmatic, we would turn the odds in our favor. “First, the requirements for obtaining a positive opinion are realistically minimal and come down to answers to the questionnaire and Council of Ministers formation. Until November 1, the European Commission will be the same people who know us very well and who have worked actively with us for the past few years. In addition, the EU Delegation to B&H actively interacts with all levels of authorities. In a way, they all want to finish a stage of their work related to us here in B&H too. Therefore, we could all turn the odds in our favor if we were rational at all,” said the President. Discussing a B&H Constitutional Court decision about RS Day, Cvijanovic said it was RS’s logic that no one in B&H should be denied an integral part of their identity, and that the Court decision would be observed, and Republic Day protected. “I am pleased with the unity demonstrated by all political parties. A conclusion from a meeting with party leaders is that we should stand united on all issues important for RS. The B&H Constitutional Court decision will be observed and Republic Day which is related to historical facts in terms of RS’s creation will be protected,” underlined Cvijanovic. The issue of appealing or disputing the fact is purely political and has nothing to do with whether someone is bothered by it or not; its sole purpose is the squaring of political accounts with RS and the ones who attack the date and the ones who defend it are clear about it, she said. According to her, co-existence is only possible when there are no such mutual disputes. “I truly believe that and I am proud that we in RS do not seed hatred against anyone and that we are capable of standing united for what is important for RS,” President Cvijanovic stated in an interview with Srna.

 

B&H Constitutional Court’s failure inadmissible (Srna)

 

Vitomir Popovic, a legal expert, believes that the failure of the B&H Constitutional Court referring to an article of the B&H Constitution, which does not exist, in the publication of the decision on the RS Day is inadmissible and frivolous. “This suggests the decision was drafted by international judges or archivists in the Constitutional Court of B&H. They only copied their earlier decision on RS Day,” Popovic told Srna. He pointed out that RS should not execute what has not been well-explained in the decision of the Constitutional Court of B&H.

 

PDP decides not to participate in ruling authority at state level regardless of SNSD’s offer (RTRS)

 

PDP leader Branislav Borenovic addressed a press conference on Wednesday and officially confirmed that PDP decided to reject SNSD’s invitation for a joint participation in authorities at B&H level. Borenovic explained that PDP will not become part of the future B&H Council of Ministers (CoM) and it will also remain the opposition at the RS level. Borenovic noted that the B&H CoM should be formed by parties that won the largest number of mandates in the B&H parliament, adding that PDP calls for completing the process of formation of the B&H CoM as soon as possible. Borenovic assessed that positions and functions in authorities are not the most important thing, but rather that it is largely important to see whether “certain policies and certain solutions” can obtain general consent of political parties. The PDP leader stressed that PDP thus finds it important for SNSD to be willing to talk about amending of the Election Law of B&H, the law on political parties, as well as on parliamentary supervision of public broadcasters.

Borenovic told the press conference that his party will act against all the things that are detrimental to the RS citizens, noting that PDP is ready to harmonize certain stances at the level of B&H when it comes to key issues concerning RS. He welcomed SNSD’s readiness to jointly work on amending the Election Law of B&H and forming a parliamentary body tasked with control of work of the media owned by the RS, announcing that the opposition and the ruling coalition in the RS are supposed to discuss these issues in the next two months. SNSD issued a statement noting that this party respects PDP’s stance. SNSD emphasized that, together with its current partners, this party has the power to protect RS interests in Sarajevo. In addition, SNSD welcomed the decisions of PDP and SDS on the need for harmonizing a unanimous stance in the RS on matters of national interest. According to SNSD, such decisions represent huge benefit for the RS.

 

Radoncic: SBB B&H needs to deal with its relationship with SDA before even considering any cooperation (N1)

 

SBB B&H leader Fahrudin Radoncic said that considering their previous experience with SDA, SBB B&H first needs to deal with their relationship before even considering joining their coalition. “At this point we can hardly accept any sort of coalition with SDA,” he said and noted that their decision was made easier thanks to DF’s move to enter negotiations with SDA, HDZ B&H and SNSD, and the fact that SNSD failed to bring SDS and PDP in the state-level coalition. Radoncic rejected allegations that he requested removal of Director of the Intelligence-Security Agency (OSA) of B&H Osman Mehmedagic in his negotiations with SDA, as well as one ministerial seat in the Council of Ministers of B&H. “We never discussed any posts with our friends, partners and acquaintances in SDA. In that sense, we could not, nor we wanted to impose our conditions,” said Radoncic. Radoncic also said that he believes that HDZ B&H leader Dragan Covic is making a mistake. He said that SDA is the only partner he sees before him. Mister Covic forgets that SDA only won 25 percent of Bosniak votes, but ok, SDA is the winner and he does not want to see any other partner, neither DF nor SBB. He was very precise with that. He said he does not want to see any Bosniak party aside from SDA said Radoncic and pointed out that Covic does not have a right to interfere in negotiations amongst Bosniak parties.

Commenting the last week’s visit of EU Commissioner for Neighborhood Policy and Enlargement Negotiations Johannes Hahn to Sarajevo and his meeting with political leaders, Radoncic said: “Mister Hahn precisely asked us and told us that we cannot build thermal blocks, that it would mean that B&H might be facing EUR billion fines annually” adding that SDA leader Bakir Izetbegovic replied that the Block 7 in Tuzla will be modern one in accordance with the international standards, and it is not going to pollute the environment like older power plants. We understand EU’s concerns with regards to the Chinese loan, but they immediately switched to the talk about pollution, which means they do not know what they are actually concerned about.

 

RS government adopts draft amendments to Law on Police and Internal Affairs in order to establish police reserve unit (RTRS)

 

The RS government adopted on Wednesday the proposal of amendments to the Law on Police and Internal Affairs in RS, which defined formal and legal conditions for establishment of the reserve police unit in the RS Ministry of Interior (MoI). According to the adopted proposal, the reserve police unit will have the same responsibilities as the regular police unit and will serve for maximizing the level of security of persons and property especially in the period when the migrant crisis gets worse. Representatives of the RS Government explained that this paves the way for establishment of the police reserve unit, given the need to define certain competences of the police more precisely.

 

Prosecutor’s Office of B&H: There will be no investigation against Kresic, Djakovic and Bandic in ‘Salafi’ affair (N1)

 

The B&H Prosecutor’s Office confirmed on Wednesday that it will not conduct an investigation against B&H Deputy Minister of Security Mijo Kresic, RTRS journalist Mato Djakovic, and Croatian Consul-General in Tuzla Ivan Bandic within the intelligence affair in B&H pertaining to the Croatian Security-Intelligence Agency (SOA). Namely, magazine Zurnal and B&H Minister of Security Dragan Mektic presented allegations that Croatian intelligence and diplomatic officials were involved in arming of members of the Salafi community in B&H. The Prosecutor’s Office reported that verifications and interviews with all individuals, who were mentioned in this case, have been completed. The Prosecutor’s Office concluded that none of the interviewed witnesses presented any information to indicate that Kresic, Djakovic and Bandic participated in the alleged activities related to recruitment of Salafi members. Despite the decision pertaining to the investigation of the three mentioned individuals, the Prosecutor’s Office announced continuation of work on this case.

 

MICT denies Karadzic’s appeal to life imprisonment (N1)

 

The Mechanism for International Criminal Tribunals (MICT) rejected the request of first RS president Radovan Karadzic, who has been sentenced to life in prison for genocide in Srebrenica and other war crimes in B&H, for allowing him to file an appeal to the length of time of his prison sentence pronounced in the MICT’s final verdict. This MICT’s decision, which was signed by MICT President Carmel Agius, reads that there are no legal grounds in the statute or the rules of the MICT according to which Karadzic would be able to file such an appeal to the final verdict or its part. The MICT also rejected Karadzic’s request for approval of appointment of a legal advisor who would assist him in preparing a motion for revision of the final verdict in his case. Karadzic’s legal advisor Marko Sladojevic said that the decision of MICT is incredible and noted that neither facts nor Karadzic’s responsibility changed in the verdict, yet a stricter sentence was ordered. “The court rejected the possibility of filing an appeal and all we have now is revision of the proceeding” Sladojevic added. Lawyer Zoran Zivanovic said that an appeal to duration of sentence can be filed only if first-instance verdict is in question. Zivanovic also said that rendering of life in prison for Karadzic represents a new decision and reminded that the MICT is a court of the United Nations so it does not apply the European Convention on Human Rights. “This created serious dilemma among judges from Europe because the convict has no other legal remedies for sentence rendered to his detriment,” Zivanovic concluded.

 

Sehovic: Agreement on Future is a platform for the past (Pobjeda)

 

Vice-President of Social Democrats of Montenegro and the Minister of Education, Damir Sehovic, said in the interview for Pobjeda that the “Agreement on Future”, signed by all the opposition members of the Parliament and organizers of the protest, was a platform for deep past and returning Montenegro to pre-political times. “Requests that lead to non-institutional decapitation of the state and elections, just because it occurred to somebody from the opposition to do so, being totally aware that it would be impossible to change the government in the elections, are not and will never be acceptable to us, in SD,” said Sehovic. He pointed out that the Agreement was some sort of confession that they agreed that they couldn’t agree on anything serious. “Not even a single letter of that Agreement supports the program commitment, or the priorities in the internal and external policy they advocate for. Instead of stating what is it they want, what policy they advocate for, we read that they all agreed that it would be very nice if they got unearned functions and took over the Prime Minister’s position, as well as two thirds of ministerial positions. Without elections! They obviously came to terms with the fact that they can’t request anything in the elections,” pointed Sehovic. Members of Social Democrats are ready for the conversation with everybody. For ultimatums though – no. “Especially not the requests that are aimed at making the election process totally senseless. What’s the purpose of elections then? Is somebody has come up with an idea of requesting some sort of hybrid, transitional government made up of those who had lost all previous elections? No negotiations on that. We suggest they finally wake up from that deep opposition dream, and realize that the Government is formed in the elections. If they can’t do that, they should resign and let others try to achieve what they haven’t been able to achieve for decades,” said Minister Sehovic. He claims that opposition parties are enemies for one another. They have become a homogenized whole only because they share political fears. “Some of them are afraid of disappearing from the political scene, and others are afraid of facing the judgment and serious consequences that might follow from that judgment,” added Sehovic.

 

Dimitrov and Reeker: Looking forward to you joining NATO (Nezavisen vesnik)

 

Foreign Minister Nikola Dimitrov, during his first day of the working visit to Washington DC, met with Philip Reeker, Deputy Assistant Secretary of State for the U.S. Department of State’s Bureau of European and Eurasian Affairs and US Congressman Brendan Boyle. The talks were focused on the pace of the reform process as a prerequisite for a society based on democratic values, Ministry of Foreign Affairs said in a press release. “Looking forward to North Macedonia joining NATO as its 30th Ally. Ongoing reforms, including the future of the Special Prosecutor’s Office are imperative. SPO’s capabilities and independence must be preserved to ensure independent justice and accountability for corruption,” Reeker told Dimitrov. Reeker, referring to the situation in the Balkan region, pointed out that it is necessary for the countries to transform internally and build capacity for a system based on justice and values.  The meeting with Congressman Boyle was in the same line, who pointed out that Prespa Agreement serves as an appropriate example of resolving conflict situations. Dimitrov expressed gratitude for the support of the US Congress, and pointing out that US as our proven partners will ratify the North Macedonia’s NATO accession protocol without delay. Additionally, Dimitrov and his Albanian counterpart Gent Cakaj, who is in Washington DC as well, signed agreement on establishment of cultural and information centers in North Macedonia and Albania. Congratulating Albania’s tenth anniversary in the Alliance, Dimitrov reiterated that the region can only be prosperous if all its countries are successful stories. Dimitrov on the first day of his visit to Washington DC gave an interview to NATO SHAPE, and referred to NATO from North Macedonia’s point of view as 30th NATO member. He also gave interview to Foreign Policy magazine. On Wednesday, Dimitrov is to attend NATO Secretary General Jen Stoltenberg’s address. Moreover, Dimitrov and his Greek counterpart Giorgos Katrougalos will participate in the “NATO Engages: The Alliance at 70” conference co-organized by the German Marshall Fund of the United States, the Atlantic Council and the Munich Security Conference.

 

Poland to ratify North Macedonia’s NATO Accession Protocol (Nezavisen vesnik)

 

The parliament in Poland is set to ratify North Macedonia’s NATO Accession Protocol on Thursday morning, said Polish Ambassador to the country Wojciech Jerzy Tycicski.

“It’s not a coincidence that the ratification vote is taking place these days” Tycinski said. “We wanted to invite Parliament Speaker Talat Xhaferi to attend the event, but he’s visiting abroad at the moment, so Vice Speaker Vesel Memedi will attend the vote.” Joining NATO, according to Tycinski, is not an easy, but complex process involving difficult decisions. Still, the final result is what counts. “We’ve been a NATO member for 20 years, and all your efforts are indeed worth it,” he added. The diplomatic discussion with NATO member states’ ambassadors was also addressed by PM Zoran Zaev and Defense Minister Radmila Shekjerinska. It was organized by the Ministry of Defense, the Euro-Atlantic Council of Macedonia, and the Embassy of the Republic of Slovenia.

 

Electoral reform, parliament 75 votes pro to postpone it (ADN)

 

The parliament has approved on Wednesday only with the majority votes the postponement of the Electoral Reform Parliamentary Committee deadline.  The new opposition MPs voted against its postponement while was approved with 75 votes in favor. Out of 89 votes in total, postponement of electoral reform was opposed by 14 new opposition MPs, who took the mandate from the Central Election Commission (CEC) following the decision of opposition parties to burn mandates. Meanwhile Socialist Party MP Damian Gjiknuri, during his speech, discussed the Electoral Reform while inviting the opposition to make its own proposals. “We are inviting the opposition to cooperate in the Electoral Reform. We are ready to invite the opposition to come to the Committee, to participate, despite burning the mandates, to fulfill what they have articulated. The opposition has the right to have a co-chairman in the Committee and we respect them the same way as MPs who are in the Parliament,” said Gjiknuri. He added that in the upcoming elections, no changes to the Electoral Code can be made, as there is no time.

 

INTERNATIONAL MEDIA SOURCES

 

Chinese Balkans investments disrupt EU objectives, Commission warns (EurActiv, by Karla Juničić and Sarantis Michalopoulos, 4 April 2019)

 

Some Chinese investments entail “macro-economic imbalances and debt-dependency” risk in the Western Balkans and impact EU objectives in the region, an EU spokesperson has said in light of a controversial energy project in Bosnia and Herzegovina. EURACTIV.com and EURACTIV Croatia report. “Every country is free to establish its investment objectives. At the same time, the EU has concerns over the socioeconomic and financial effects some of China’s investments can have. There is the risk of macro-economic imbalances and debt-dependency,” an EU spokesperson told EURACTIV. EURACTIV contacted the EU executive following a decision earlier this week of the parliament of the Federation of Bosnia and Herzegovina (BiH), one of Bosnia’s two entities, to grant prior consent for a €614 million loan for an energy project which involves China. BiH’s public energy company, Elektroprivreda BiH d.d., will receive funds from Export-Import Bank of China (EXIM) to replace three old units by building a new 450-megawatt (MW) unit, the so-called Block 7 project, at the 715 MW Tuzla coal-power plant. “The Federation needs to be energy independent,” the lawmakers said, adding that the Block 7 construction is a crucial project of public interest as it will provide energy and make Tuzla’s air “cleaner”. Referring to China’s investments in the region, the EU spokesperson cited  Montenegro as a good example of how it works. “A Chinese loan for a motorway is greatly limiting the country’s fiscal space and boosts public debt beyond 70% of GDP. So, these investments often come with strings attached. And that in return has an impact on our aim, namely to improve the stability and economic development of the Western Balkans regions but also further away, eg in Africa,” the EU official said. On 9 April, the 21st EU-China summit is going to take place in Brussels, where the EU will seek a “balanced relation, which ensures fair competition and equal market access”.

 

Commission opposes the plan

On 28 March, Commissioner Johannes Hahn paid a visit to Bosnia and Herzegovina and pointed out that the country should endeavour to decarbonise energy production and invest more in renewables. EU candidate countries (Albania, Montenegro, North Macedonia, and Serbia) as well as potential candidates (Bosnia-Herzegovina and Kosovo) have Stabilisation and Association Agreements (SAA) with the EU in place and are members of the Energy Community. The EU official said those countries had to respect the relevant provisions of the SAA and the Energy Community Treaty with regard to state aid. “In this respect, any state aid which distorts or threatens to distort competition by favouring certain undertakings or certain products, insofar as it may affect trade between the Community and in this case, Bosnia-Herzegovina, is not compatible with the proper functioning of the SAA and the Energy Community Treaty, respectively.” The EU spokesperson added that the Energy Community Secretariat expressed clear concerns in reference to non-compliance with EU state aid rules regarding the development of the Block 7 project. “BiH authorities have to address those concerns and seek a resolution to the benefit of all parties involved,” the official concluded.

[Edited by Zoran Radosavljevic and Sam Morgan]

 

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