AGP Executive Report

Infrastructure & Trade: The Kvanj Tunnel on Bosnia’s Kvanj–Buna motorway section was holed through, advancing Corridor Vc and boosting Herzegovina’s links to the rest of BiH and European markets. Aviation & Tourism: Libyan carrier Medsky is making progress toward launching direct flights between Sarajevo and Tripoli, aiming to support travel, trade, and tourism. Labor Market: New ILO data shows labor productivity remains a major Western Balkans challenge, with Bosnia and Herzegovina at 26.3 international dollars per hour worked (below the global average). Business & Diplomacy: Israel’s Chamber of Commerce opened an office in Banja Luka, signaling deeper economic ties with Republika Srpska amid wider political controversy. EU/Regional Security Industry: EU ambassador Luigi Soreca said around 200 Balkan companies can produce NATO-standard ammunition, with Bosnia and Serbia leading regional capacity. Sports Governance (with local links): Belgium’s football federation withdrew support for FIFA chief Gianni Infantino’s re-election, citing FIFA’s handling of the Folarin Balogun case tied to Bosnia. Employment: Sarajevo’s job fair “Gledaj sebi posla” drew 140+ companies and focused on workforce shortages, youth employment, inclusion, and future skills.

War & Politics Spillover: Thousands gathered in Belgrade for the funeral of convicted Bosnian Serb war criminal Ratko Mladić, with EU officials again condemning the “glorification” of a genocide convict; Bosnia’s Denis Zvizdić said EU reactions are “mild and sterile,” while UEFA also fined Red Star and hit away-fan travel with sanctions after Mladic tributes. Sports Governance: Belgium’s football federation withdrew support for FIFA chief Gianni Infantino, citing transparency and governance concerns and FIFA’s handling of Folarin Balogun’s World Cup red-card suspension. Defense & Industry: An EU security conference in Sarajevo heard that around 200 Western Balkan companies can produce NATO-standard ammunition, with Bosnia and Serbia highlighted for capacity. Business & Investment: Bosnia’s Presidency met US Congressmen Murphy and Veasey, stressing stability as a prerequisite for investment and flagging the Southern Gas Interconnection; separately, the Israeli Chamber of Commerce opened a Banja Luka office to deepen trade ties with Republika Srpska. Jobs & Skills: Sarajevo’s “Gledaj sebi posla” job fair drew 140+ companies and focused on workforce shortages, youth employment, inclusion, digital skills and AI’s impact on jobs. Local Economy: Zenica coal miners protested unpaid wages outside the Sarajevo government building.

MMA & Sports Business: Sarajevo’s KK Bosna added former NBA forward Reggie Perry, a 2020 second-round pick who averaged 14.1 points and 7.5 rebounds last season in China, underlining how regional clubs keep pulling international talent. Foreign Investment & Energy: Bosnia’s Presidency member Željko Komšić met US Congressmen Greg Murphy and Marc Veasey, with both sides stressing that stability is key for attracting investments and highlighting the Southern Gas Interconnection as a growth and energy-security project. Trade & Diplomacy: Israel opened an Israeli Chamber of Commerce office in Republika Srpska’s Banja Luka, aiming to turn political ties into business links for Israeli firms seeking opportunities in the entity and the wider region. EU Integration & Governance: Komšić also met UK Special Envoy Dame Karen Pierce, with a focus on continued UK support for BiH reforms tied to stability and socio-economic development. Elections & Public Resources: The “Under Scrutiny” coalition says it has logged 528 election irregularities ahead of BiH’s vote, including 206 cases each of premature campaigning and misuse of public resources, and reports 17 sanctions totaling 87,500 KM. Media Freedom: SafeJournalists warns of growing unexplained Meta account restrictions in Albania affecting media and public-interest accounts, raising concerns for civic and business-related information flows. Data & Statistics: The EU4ADMIN project wrapped up in Tarčin, aiming to improve BiH’s official statistics by expanding the use of administrative data across institutions. Security & Regional Influence: EU envoy Luigi Soreca warned that foreign interference is increasing in the Western Balkans and said EU enlargement is now part of the bloc’s wider security strategy.

Israel-BiH Trade Push: The Israeli Chamber of Commerce opened an office in Banja Luka, aiming to turn political ties with Republika Srpska into ongoing business links for Israeli firms and the wider region. Investment & Energy Focus: BiH Presidency member Željko Komšić met US Congressmen Greg Murphy and Marc Veasey, with both sides stressing stability as a prerequisite for investment and highlighting the Southern Gas Interconnection and economic cooperation. EU Integration & Reforms: Komšić also met UK Special Envoy Karen Pierce, with talks centered on continued UK support for BiH reforms, election transparency, and faster socio-economic progress. Election Integrity Watch: The “Under Scrutiny” coalition says it has recorded 528 election irregularities so far and pushed 101 initiatives to the Central Election Commission, with sanctions totaling 87,500 KM. Stats System Upgrade: The EU4ADMIN project wrapped up after nearly three years, aiming to improve how BiH uses administrative data to produce official statistics. Media Freedom Concern: SafeJournalists warns that Meta has restricted or blocked accounts of media and public-interest groups in Albania without clear explanations.

Israel–RS Business Push: Israel opened its first Chamber of Commerce office in Republika Srpska in Banja Luka, with officials including Amichai Chikli and Milorad Dodik framing it as a “permanent point of contact” to boost trade, investment and technology links. EU Reform & Data Capacity: The EU4ADMIN project wrapped up after nearly three years, aiming to improve Bosnia’s official statistics by expanding how administrative data is used across institutions. Security & Industry Angle: EU envoy Luigi Soreca warned of rising foreign interference in the Western Balkans and said Bosnia and the region are increasingly tied to Europe’s security, including regional capacity to produce NATO-standard ammunition. Migration Enforcement: Bosnia detained 96 migrants in two border operations, including 18 Afghans, as authorities continue to target illegal entry routes toward the EU. Local Economy/Infrastructure: Bosnia’s Presidency approved new consular and international accords, while the Council of Ministers allocated 4 million BAM for Annex VII Dayton projects. Sports & Business Attention: UEFA fined Serbia’s Red Star Belgrade 90,000 euros and restricted away ticket sales after fans glorified Ratko Mladić—another reminder of how reputational risk can hit club finances.

EU Reform Push: Bosnia’s EU envoy Luigi Soreca says foreign interference is rising across the Western Balkans and frames EU enlargement as part of Europe’s security strategy, citing €98m in regional security support (including €35m for BiH). Election Integrity: The “Under Scrutiny” coalition reports 528 election irregularities in the pre-campaign period and has filed 101 initiatives to the Central Election Commission, with 17 sanctions totaling 87,500 KM. Administrative Data Upgrade: The EU4ADMIN project wraps up in Tarčin, aiming to improve how Bosnia uses administrative records to produce official statistics. Energy & Connectivity: A new Energy Community framework could prioritize regional grid and storage projects; Bosnia is also mentioned in cross-border line rehabilitation plans. Cross-Border Enforcement: Croatia removed and fined several men, including Bosnian citizens, over social media posts glorifying Ratko Mladić. Security Procurement (US): The U.S. ATF plans a sole-source purchase of a Roshel Senator armored vehicle, citing urgent delivery needs.

EU Enlargement & Security: EU envoy Luigi Soreca warned that foreign interference is rising across the Western Balkans and said EU enlargement is now part of Europe’s security strategy, noting €98m in security support for the region (including €35m for BiH). EU Values Clash: Serbia’s EU path faces new pressure after Commissioner Marta Kos postponed a Belgrade visit over the glorification of convicted war criminal Ratko Mladić; Irish officials also said a state funeral would be unacceptable for the EU. Local Enforcement & Permits: Croatia removed and fined several Bosnian citizens over social-media posts glorifying Mladić, with residence/work permits revoked and entry bans initiated. Governance & Elections: The “Under Scrutiny” coalition reported 528 election irregularities and 17 CEC sanctions worth 87,500 KM so far, targeting misuse of public resources and premature campaigning. Statistics & EU Integration: The EU4ADMIN project wrapped up after nearly three years, aiming to boost BiH’s use of administrative data for official statistics. Migration: Bosnia detained 96 migrants (including 18 Afghans) after attempted illegal border crossings. Business & Investment: BiH’s Presidency approved a new consulate in Split and several multilateral accords, including aviation and tourism cooperation.

EU Security & Industry: EU envoy Luigi Soreca warned that foreign interference is rising across the Western Balkans, tying Bosnia directly to Europe’s security. He said the EU has provided €98m in security support to the region (including €35m for Bosnia) and noted that over 200 regional companies can produce NATO-standard ammunition, mainly in Serbia and Bosnia. EU Enlargement Politics: Bosnia’s FM Elmedin Konaković said EU enlargement is now a strategic and security need, arguing reforms can move faster when there’s a credible European goal. BiH Governance & Accords: The BiH Presidency approved a new consulate in Split and ratified/approved a broad set of international instruments, including AI, civil aviation, free trade updates, e-commerce rules, tobacco control, and labor standards. Elections & Campaign Climate: Bosnia’s election campaign is set to start amid high political tension, with 518 officials to be elected and CEC calls to strictly follow election law, including hate-speech bans. Domestic Legal Pressure: Federal Minister Vojin Mijatović said an indictment by POSKOK is a “political process,” stressing cooperation with prosecutors and urging public awareness of all sides. Defense & Tech: Bosnia showcased domestically produced drones at the “First Balkan Shield” defense fair, highlighting growing local capacity in unmanned systems. Migration Enforcement: Bosnia police detained 96 migrants (including 18 Afghans) in operations targeting illegal border crossings. Regional War-Crime Fallout: EU officials condemned Serbia’s Mladić-related commemorations; Ireland’s EU presidency warned a state funeral would be unacceptable, while Serbia prepares Mladić’s burial.

Aviation M&A: Veryon acquired Polaris Aero, adding safety management tools and data from 112,000+ safety reports and 174 million+ flight hazards to its maintenance software suite, expanding its customer base by 200+ (Aviation & Tech:). BiH Health Finance: A €45m World Bank loan for Republika Srpska’s Health Systems Improvement Project was signed in Banja Luka, including settling about BAM 45m in taxes and contributions for the University Clinical Centre and funding psychiatric and other healthcare upgrades (Public Finance & Health:). Governance Watch: A BiH monitoring report says promise fulfillment is low: the Council of Ministers delivered 20 of 251 promises, the RS government 5 of 106, and Sarajevo Canton about 25%—with economy-related tax/VAT pledges largely unfulfilled (Policy & Accountability:). Judicial Discipline: BiH’s Disciplinary Prosecutor office reported a 30.5% rise in reports and a 43% jump in complaints in the first half of the year, citing faster average resolution (Rule of Law:). Tourism Demand: Dubrovnik-Neretva County logged 2.07m overnight stays in August; Bosnian visitors contributed 157,613 nights, highlighting regional travel pull (Tourism & Cross-Border Travel:). Defense Industry Cooperation: Egypt and Turkey signed an MoU between defense-linked companies during First Balkan Shield 2026 in Sarajevo, pointing to joint industrial partnerships (Defense & Industry:).

BiH Elections & Governance: Bosnia and Herzegovina is rolling out new biometric voter ID scanners and ballot scanners nationwide, with the contract worth 74.5 million KM and plans to install 6,000 devices and 6,000 ballot scanners to curb multiple voting and other fraud. Public Finance & Healthcare: A 45 million euro World Bank loan for Republika Srpska’s Health Systems Improvement Project is being used to settle University Clinical Centre tax and contribution arrears (about BAM 45m for 2012–2019), with around BAM 20m expected to be withdrawn for payments and pension-related rights. Rule of Law & Accountability: BiH’s Office of the Disciplinary Prosecutor reports a 30.5% rise in disciplinary reports and a 43% jump in complaints being processed, with more cases tied to delays in proceedings and alleged undeclared assets. Business & Investment: LISCO leads a Libyan delegation at ZEPS 2026 in Zenica (2–5 September), pushing trade and economic cooperation with Bosnia and Herzegovina. Energy & Investment Outlook: A geothermal know-how push highlights that Europe can scale geothermal beyond volcanic regions, stressing faster and more predictable permitting to unlock projects.

Election Integrity Upgrade: Bosnia and Herzegovina is rolling out biometric voter ID scanners for upcoming elections, with 6,000 biometric devices and 6,000 ballot scanners planned nationwide under a contract worth 74.5 million KM, aimed at cutting multiple voting and other fraud. Public Service Under Pressure: BHRT says its accounts were blocked and operations disabled right as the general election campaign starts, warning this could disrupt timely election coverage while it alleges uneven enforcement in a dispute involving RTRS. Energy & Jobs: Zenica coal miners protested outside the Sarajevo government building over unpaid wages, while the FBiH energy minister said holiday allowances were transferred to miners’ accounts as a step toward resolving long-running issues. Foreign Policy & EU Path: Bosnia’s foreign minister is in Vienna for European integration talks with Austria, stressing EU enlargement now depends on political determination amid new security realities. Defense Industry Cooperation: Bosnia and Egypt discussed strengthening defense cooperation, including technology exchange and joint production opportunities, alongside mine action and demining training. Tourism Demand Boost: Republika Srpska is restarting 100 KM domestic tourist vouchers from September 7 to November 30 to support local travel. Regional Business Climate: A new Europe business ranking highlights Bosnia’s relatively low employment-to-productivity performance, placing it near the bottom on innovation and digitalisation.

Defense Industry & Trade: Bosnia and Herzegovina and Egypt are discussing deeper defense cooperation, including technology exchange and joint production, during the First International Fair of Weapons and Military Equipment in Sarajevo. Mine Action Financing: Bosnia’s mine-clearing progress is held back by financing and equipment shortages, with donors shifting priorities and leaving BHMAC facing longer timelines. Regional Security Expo: “First Balkan Shield – Defence Industry Expo and Summit 2026” opened in Sarajevo, featuring defense tech, cybersecurity and unmanned systems from about 50 firms over four days. EU Policy Pressure: Eleven EU member states are pushing to curb foreign-policy veto power by moving toward qualified majority voting to speed up collective action. Schengen Trucking Clash: The European Commission says Schengen stay rules won’t change despite Western Balkan truckers demanding 120 days instead of 90, with protests and a possible regional blockade looming. Tourism Demand Boost: Republika Srpska is restarting 100 KM tourist vouchers from Sept 7 to Nov 30 to support domestic travel. Tax Administration Update: FBiH Tax Administration says a planned strike is not underway and operations continue normally.

Defense & Industry: Sarajevo hosts the First Balkan Shield 2026 defense expo and summit (Sept 1–4), with 50+ exhibitors and a 7,000+ m² showcase spanning tech, cybersecurity, unmanned systems and logistics, plus a conference on innovation and industrial capacity. Diplomacy & Trade: New UK Ambassador Dawn McKen presented credentials to Bosnia’s Presidency, stressing support for sovereignty, stability and the Euro-Atlantic path; Bosnia’s FM Elmedin Konaković also attended the Bled Strategic Forum and met Austrian officials, including plans to boost bilateral business ties. Public Finance: The Council of Ministers allocates 4 million BAM for Annex VII Dayton projects via a sub-account under the BiH Return Fund. Tax Administration: FBiH Tax Administration says a planned strike is not underway after a union decision prolonging it pending court review. Cross-border Logistics: Truck drivers across the region protest Schengen stay limits and warn of new border blockades from Sept 14 unless rules are adjusted for professional drivers. Cyber & Gaming: HIT Group begins reopening Slovenian casinos after a cyberattack disrupted operations, with some gaming and loyalty functions still unavailable. Sports Business: Everton’s Folarin Balogun deal with Monaco appears to be off after the US striker decided against the move, despite an agreed fee structure. EU Politics: EU says it will never recognize Russia’s annexation of occupied Ukrainian territories.

Bosnia & Herzegovina Budget for Returns: The Council of Ministers approved 4 million BAM for Annex VII Dayton Peace Agreement projects, with the money routed to a sub-account of the BiH Return Fund to finance approved return and displacement-related initiatives. Defense & Industry: Sarajevo hosts First Balkan Shield 2026 (Sept 1–4) at Zetra, bringing together domestic and international defense industry firms and institutions across 7,000 m² of exhibition space. EU Integration Diplomacy: BiH Foreign Minister Elmedin Konaković attended the Bled Strategic Forum, pushing for a faster, more credible EU enlargement process and discussing regional security, energy and economic resilience. Tax Administration Labor Update: The FBiH Tax Administration says the announced strike is not underway, with units operating normally while a court process reviews the strike’s legality. Schengen Rules Hit Transport Costs: Truck drivers across the region protested the 90/180-day Schengen stay limits for professional drivers, warning of renewed border blockades from Sept 14 unless exemptions or workable solutions are agreed. Tourism & Business Travel: Sarajevo Canton’s Tourism Board launched a mobile app to streamline guest registration, aiming to reduce friction for accommodation providers and visitors. Regional Business Signals: HIT Group began reopening Slovenian casinos after a cyberattack disrupted gaming systems, while some functions and loyalty services remain unavailable.

Schengen Pressure on Truckers: Hundreds of professional drivers and transporters protested outside EU delegations in Sarajevo, Belgrade, Podgorica and Skopje over the 90/180-day Schengen stay limits, warning of new border blockades from Sept. 14 unless rules are adjusted for work-based stays. Cybersecurity & Gaming: Slovenia’s HIT Group has started reopening casinos after a cyberattack shut six properties for days; some gaming and loyalty functions remain unavailable while systems are restored. Sarajevo Tourism Boost: Sarajevo logged a record summer, with over 100,000 tourists in July and major concert-driven spending—nearly €78m in turnover across three Dino Merlin concert days—followed by the Sarajevo Film Festival. Federal Police Probe Waste Subsidies: Bosnia’s Federal Police Administration is conducting searches tied to suspected multimillion KM subsidies for waste removal from Široki Brijeg to the Mošćanica landfill in Zenica-Doboj and West Herzegovina cantons. Regional Energy Dependence Debate: Serbia’s shift toward renewables and coal phase-out is increasingly tied to Chinese suppliers, raising questions about whether it replaces one dependency with another. Local Labor Tension: Tax Administration employees in FBiH are set to strike over salary levels and staffing shortages.

Tourism & Culture Boost: Sarajevo is riding a record summer tourism wave, with July bringing over 100,000 visitors and major spending tied to Dino Merlin concerts, the Prodigy show, and the Sarajevo Film Festival—pushing hotel and private accommodation pressure and driving an estimated €78m turnover across concert days. Local Business & Connectivity: Wizz Air will add a third weekly flight on the Sarajevo–Rome route from September 9 (Mondays, Wednesdays, Fridays), supporting year-round links; the canton also points to winter service to Berlin, Prague and Bratislava. Public Finance & Social Policy: Republika Srpska pensioners will receive one-time aid via budget rebalancing—120 KM for those below the average pension (698 KM) and 80 KM for those above. Tax Administration Labor Action: FBiH Tax Administration employees plan a strike over pay and staffing shortages, citing roughly 500 missing employees versus the 2013 systematization. Elections Tech & Voter Pressure: OSCE-backed voting simulations will let citizens test new electoral technologies, but a study warns that voter pressure often happens outside polling stations. Energy/Climate Risk to Industry: Extreme drought is hitting the fish sector across the region, including Bosnia, with losses running into millions as water levels drop and farms struggle to restock.