Državna pomoć: izazov transpozicije političkog i pravnog okvira EU u BiH
State aid: The challenge of transposition of the political and legal framework of the EU into Bosnia and Herzegovina

Summary/Abstract: This article examines the development and application of the substantive and procedural law of the EU concerning the regulation of “state aids”. The content, approach and application of EU state aid rules to non EU countries is explored with reference to the provisions of the Stabilization and Association Agreements between European Union and Bosnia and Herzegovina. The European Union is based on the rule of law and focused on the objectives set out in the EC Treaty. State aid regulations deal with the impact of subsidies, tax breaks and other forms of government concessions on competition and trade within EU. Thus, State aid is a form of selective state intervention used to promote a certain economic activity. It implies that certain economic sectors or activities are treated more favorably than others and, thus, that the state aid distorts or may distort competition because it discriminates between companies that receive assistance and others that do not. The development of a State Aid System in BiH is a required part of the process of EU Integration being undertaken in the country and this is a clear obligation from the EU/BiH Stabilization and Association Agreement. A BiH State aid system, along similar lines, is also required by the CEFTA 2006 agreement and European Energy Community Agreement in South-East Europe. Full accession to the WTO will also require further regular reporting on industrial subsidies. The Interim (SAA) agreement is in force since 1. 7. 2008. and provisions regarding state aid are subject to the Interim Agreement. Therefore, Bosnia and Herzegovina is in breach of the agreement as of 1.7.2010. since BiH was supposed to adopt the state aid law and to establish independent operative body for the state aid at the level of BiH state two years after signing SAA. The legal base for this are the articles III, 1, b) and III, 2, b) of the BiH Constitution, clearly pointing at the foreign trade competency of BiH and obligation of the entities to assist government institutions in fulfilling international obligations.

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