The European Union has called on the authorities of Bosnia and Herzegovina to take measures to alleviate the economic shock due to the coronavirus crisis, „Dnevni Avaz“ has learned. Namely, in the document that our paper received from Brussels, the Union pointed out six key economic recommendations on the basis of the annual economic dialogue with the countries of the Western Balkans and Turkey.

Accelerate recovery

The Union appeals to B&H authorities to respond urgently and to keep accurate statistics on the consequences and to transmit them to the Union institutions.

- Take the necessary fiscal measures to mitigate the economic shock of the crisis caused by COVID infection, especially by protecting the most vulnerable groups. To accelerate economic recovery, increase public investment that stimulates growth as a share of GDP, based on a comprehensive investment strategy. Improve the precision of social transfers by increasing the share of benefits checked in total social spending - the recommendations state.

Also, during this year's dialogue, it was stated that the plans submitted earlier had to adapt to the global crisis.

- Carefully monitor the challenges to financial stability arising from the coronavirus pandemic and take appropriate action if necessary. Protect the integrity of the currency board and the independence of the Central Bank - it was pointed out.

However, Brussels also gives precise instructions that a plan to help companies must be implemented during the corona crisis, especially since a recovery in B&H cannot be expected before 2022, according to CBBH estimates.

Incentive for companies

- Establish an effective, coordinated and transparent mechanism to support companies affected by the crisis, especially small and medium-sized enterprises and self-employment. Expand social protection coverage and provide incentives to firms. Simplify operations with the aim of a quick recovery after the COVID-19 crisis and take measures to preserve employment - it is stated, among other things.

Centralized procurement of medicines and equipment

It is also recommended to ensure adequate and sustainable funding to strengthen the health sector with the aim of improving access to quality public health care for all citizens.

It would be good to determine the scope and apply centralized procurement of medicines and medical equipment, especially for expensive costs and large quantities of drugs, it was said in the EU recommendations addressed to the B&H authorities.