• structural reforms in the economic sector;
• structural reforms of institutions and civil society (including police, judiciary, media and military);
• the return of displaced persons and refugees;
• the strengthening of the Common Institutions.

7. The Council is concerned that the High Representative is not in a position to respond swiftly and urgently enough to unforeseen financial needs arising from sudden political developments on the ground, without having to refer back to capitals. The Council requests donors to seek for more flexibility in their programs. In particular, the Council:

• encourages the High Representative to continue, through the Economic Task Force (ETF) to integrate economic aspects of peace implementation, and asks ETF members further to co-ordinate and plan their programs. It welcomes in this respect the existing co-operation between the High Representative and the International Management Group and calls for a further strengthening of that co-operation;
• encourages the High Representative to invite the major donors to meet quarterly to review their assistance programs, in order to share information, evaluate progress and, if necessary, suggest mid-course corrections in the direction or implementation;
• urges donors to undertake to ensure adequate funds are available to the High Representative to support initiatives in response to situations involving urgent action.

8. The Council calls on donors to apply strict conditionality in the allocation of their funds as discussed in the ETF under the chairmanship of the High Representative.

9. The Council calls on donors to provide the necessary means to help with the establishment of new bodies, such as the Bosnia and Herzegovina Statistics Agency, the Telecommunication Agency or Mostar Airport Authority, and to complement these bodies' own budgets or funding.

Privatization of enterprises and banks

10. The Council expects the Entities to carry out a rapid transition to a free-market economy, focusing, above all, on enterprise and bank privatization. The Council calls on the High Representative to use his authority to achieve these economic reform objectives.

It encourages donors to tailor their contributions to match progress in implementation to support the decisions of the High Representative.

The Council demands:

• that political parties immediately separate themselves from direct or indirect relationships to state-controlled enterprises and calls on the High Representative to take appropriate steps to ensure a privatization process free from political interference;

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