Bosnia Faces Strikes over Budget Cutbacks

Social protests in Sarajevo earlier this year

The bill, adopted by the Federal government on Monday and sent into urgent parliamentary procedure, will significantly reduce salaries across the public sector as well as social benefits and pensions.

The bill should reduce spending by around €207 million, in line with the requirements of the International Monetary Fund (IMF). If and when this reduction is implemented, Bosnia could get the first slice of the new €1.2 billion stand-by arrangement from the IMF.

Without the new stand-by arrangement, Bosnia could fall into dire economic and financial straits due to the global recession. Federal officials have repeatedly warned that without budget reductions and IMF help, it’s budget will collapse by September.

Despite detailed explanations for the reduction provided by Federal officials, influential war veterans’ associations and trade unions met the bill with outrage and threats.

“We refuse this law,” president of Bosnia’s Association of Trade Unions Edhem Biber told journalists.

He stressed that proposed law was against the constitution and added that 13 various trade unions and syndicates have agreed to start organizing a series of strikes and demonstrations aimed at bring down the current government.