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Bosnia is facing its gravest political crisis since the end of the war.
Bosnian Serbs have blocked the work of the central government and their separatist leader Milorad Dodik has announced the dismantling of key state institutions.
But Bosnia needs to address 14 key priorities identified by the European Commission in order to become a candidate for EU membership, he said.
Under the Dayton peace accords that ended the s war, Bosnia was split into two autonomous regions - the Serb Republic Republika Srpska and the Federation dominated by Croats and Bosniaks, linked by a weak central government. Dodik has said the Serb Republic will pull out of Bosnia's armed forces, top judiciary body and tax administration - three institutions representing the key pillars of state security, anti aging miload of law and the fiscal system.
Varhelyi said key decisions were pending, so investments for investment projects due to be financed by the EU could be lost and Bosnia could additionally be excluded from other programmes. The divisive rhetoric and actions do not help.
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