Bosnia and Herzegovina is grappling with a deepening political crisis as international peace envoy Christian Schmidt moved to unblock state finances, a decision vehemently opposed by Bosnian Serb leaders. This intervention comes amidst escalating secessionist threats from Republika Srpska, led by Milorad Dodik, further destabilizing the fragile peace established by the Dayton Accords.

Bosnia’s Deepening Political Crisis

Bosnia and Herzegovina faces a critical test of its statehood, marked by escalating tensions between the central government in Sarajevo and Republika Srpska (RS). The crisis intensified following the conviction of RS President Milorad Dodik for defying the High Representative’s edicts, leading to renewed calls for secession and a challenge to the country’s constitutional order.

  • Financial Deadlock: A long-standing state debt, primarily from the Serb Republic’s termination of a hydro-power plant contract, has blocked the 2025 budget. Envoy Christian Schmidt’s ruling to allocate RS road tolls to settle this debt has been rejected by Serb politicians.
  • Secessionist Push: Milorad Dodik and other RS leaders have enacted laws challenging the authority of Bosnian state institutions, including the judiciary and police, aiming to roll back interventions made by previous High Representatives.
  • International Intervention: The Office of the High Representative, established by the Dayton Accords, possesses broad executive powers. Schmidt’s recent financial intervention and Dodik’s conviction underscore the ongoing struggle over the High Representative’s authority, which Serbs do not recognize.

The Role of the High Representative and Dayton Accords

The Dayton Accords, which ended the Bosnian War in 1995, created a complex power-sharing system. The High Representative was endowed with

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