Political Directors of the Peace Implementation Council Steering Board met in Sarajevo on 12-13 December and discussed the challenges facing Bosnia and Herzegovina in 2012, a year that is likely to see difficult economic circumstances in the region and the world.

The PIC Steering Board welcomed the reinforced role of the EU in BiH with the arrival of the new Head of the EU Delegation/EU Special Representative who has the lead in supporting BiH on EU-related matters. It also welcomed the close co-operation that has been established between the enhanced EU presence, other international community actors and the High Representative in BiH, whose mandate focuses on the Dayton implementation agenda.

The Steering Board assessed that the results delivered since the October 2010 elections fall well short of the expectations of both BiH citizens and the International Community, and expressed its profound disappointment with the political stagnation, which has characterised the last 14 months.

The Steering Board called on political leaders and elected representatives to recognize the urgency of the situation and to live up to their responsibilities, and to intensify their dialogue to reach compromise without further delay in order to take the following actions:

• Appoint a new Council of Ministers
• Adopt a global fiscal framework and a state budget that will ensure the full functioning of the state-level institutions and the fulfilment of BiH’s international obligations
• Take urgent measures to promote economic growth and stimulate employment.
• Meet the requirements that will ensure progress towards EU integration
• The NATO members of the PIC and Japan called upon the BiH authorities to complete the steps necessary to enable the start of the country’s NATO Membership Action Plan.

The PIC SB called on the relevant parties to form the joint commission on preparing a precise description of the IEBL and to submit information necessary for its work, as called for in Annex 2 of the GFAP.

The PIC Steering Board reminded the political leaders and competent institutions of the need to preserve achieved reforms and to complete the 5+2 agenda, which remains necessary for the closure of the Office of the High Representative.

The PIC SB welcomed as a positive step the publication by RS authorities on 1 December of a map that reflects that the IEBL does not exist in Brcko District, in accordance with the Brcko Final Award.  Taking this into account, the PIC SB will work expeditiously with a view to taking a decision on ending Brcko supervision by the next meeting of the PIC, while considering ways to maintain the Arbitral Tribunal established under Annex 2 of the GFAP to address any disputes involving the important and binding obligations arising from the Brcko Final Award.^[1]

The PIC Steering Board expressed its concern with the lack of implementation of the BiH Constitutional Court’s ruling on the electoral system for Mostar.

Recalling its earlier communiqués and declarations, the PIC SB underlined its unequivocal commitment to BiH’s territorial integrity and sovereignty. It reiterated its full support for the High Representative, who will continue to ensure full respect for the General Framework Agreement for Peace (GFAP) and carry out his mandate under Annex 10 and relevant UN Security Council Resolutions, which remains unchanged. The PIC SB reminded all parties of their obligation to fully comply with the GFAP, all its annexes, and decisions of the High Representative. The PIC Steering Board underlined that the International Community retains the necessary instruments to uphold the Dayton Peace Agreement.

The PIC Steering Board will hold its next meeting on 22/23 May, 2012 in Sarajevo.