The European Union is the largest single donor of funds and financial assistance to Bosnia and Herzegovina.

Between 2007 and 2013, Bosnia and Herzegovina received EUR 615 million from the Instrument for Pre-Accession Assistance (IPA), which provides targeted financial assistance to candidate and potential candidate countries. In the second phase of IPA support (2014-2020), EUR 552.1 million is earmarked for Bosnia and Herzegovina. IPA in particular helps to strengthen democratic institutions and the rule of law, to reform public administration, implement economic reforms, promote respect for human and minority rights and gender equality, support the development of civil society, promote regional cooperation, and contribute to sustainable development and poverty reduction.

The European Union is BiH’s main trading partner. BiH has benefited from access to the EU market through the introduction of the so-called autonomous trade measures since 2000. Following the entry into force of the Interim Agreement, EU market access for products from Bosnia and Herzegovina has increased even more, and trade preferences have been granted for imports from the EU into the country.

In addition to grants, the European Union supports the development of Bosnia and Herzegovina through loans from the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and many other mechanisms.