High Representative/Vice-President Kaja Kallas, speaking at Camp Butmir in Sarajevo on 2 July 2026, warned that Bosnia and Herzegovina risks losing an additional €370 million in EU funding if it does not accelerate internal reforms. Kallas noted that over €100 million has already been forfeited under the Growth Plan for the Western Balkans due to slow progress. She stressed that the security situation in the country remains calm but fragile, with upcoming elections in October potentially increasing political polarisation.
Kallas, on her third visit to Bosnia and Herzegovina in sixteen months, highlighted three lessons from the country's post-war experience. First, peace has endured for 31 years because it is enforceable, citing EUFOR Althea's rapid deployment of hundreds of additional troops in March 2025 to respond to a crisis involving calls for Bosnian Serb resignations from central police and judiciary. Second, unity among external actors, particularly EU-NATO cooperation and alignment with the United States, remains essential for long-term stability. Third, building a functioning state requires sustained effort: the EU has allocated €35 million in total support for the country's armed forces, including €15 million in May 2026, and is exploring further assistance.
Kallas emphasised that over 74 percent of Bosnians want to join the EU, and the accession process is realistic, citing ongoing negotiations with Montenegro, Albania, Ukraine, and Moldova. However, she warned that without progress, the country risks being left behind. The speech comes as a new High Representative is expected to be appointed to oversee the Dayton Accords, with Kallas calling for an individual who can unify the country and gradually phase out the need for the role.
The EU's financial contributions have already upgraded hundreds of kilometres of motorways, added 400 megawatts of energy capacity, and improved water and sanitation for over half a million people. Kallas concluded that the EU remains committed to Bosnia and Herzegovina's stability and prosperity, but reforms are necessary to unlock further funding.