The Effects of the Greek Crisis on Bosnia and Herzegovina
The Effects of the Greek Crisis on Bosnia and Herzegovina

Summary/Abstract: Abstract. The Greek crisis would not have had such a severe effect on the economy of Bosnia and Herzegovina (BaH), had it not been for the cumulative effects of its internal complexities and political challenges. BaH has in fact suffered from three distinct negative influences. On the one hand, its complex governmental structure is a major challenge to its fiscal sustainability, with thirteen fully-fledged governments that consume a large part of its revenue. Second, since the elections of 2006, the country has faced the most severe political stalemate since the Dayton Agreement and has pushed aside any serious debate about economic stability and development. And finally, the existing internal problems have been combined with the most severe global economic crisis since the Great Depression. This global financial and economic crisis only worsened the existing negative macroeconomic conditions surrounding BaH. The Greek variant of this crisis, however, in itself did not have any direct impact on the economy of BaH.

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