• that an end is put to political obstructionism in the implementation of privatization;
• that the Entities take all necessary steps to implement the privatization of enterprises and banks in conformity with the State Law.

11. The Council welcomes the establishment of the Privatization Monitoring Commission. It urges the High Representative to take appropriate action as proposed by the Commission or as he deems necessary to expedite the privatization process in a fair way. The Council requests the Entities to co-operate fully with the Commission.

12. Concerning privatization of enterprises, the Council demands that in 1999, the privatization of small scale enterprises be completed and privatization of large enterprises be set firmly in train. The Entities will:

• by 28 February 1999, bring in line their legislation with the State Law, in particular the eligibility criteria for issuance of vouchers;
• fully inform, through a public education campaign, all potential beneficiaries of vouchers, including displaced persons and refugees, of their rights;
• establish immediately mechanisms for inter entity co-operation, including a common data base;
• pass and implement all laws essential in a market economy, including the adoption of the Enterprise law by 31 March 1999, and the adoption of Labor and Foreign Investment Laws by 31 May 1999. EU standards and experience should serve as guidance in this area;
• adopt and publish a strategy for industrial development, which creates the conditions in which new industries can emerge in the private sector and which would facilitate restructuring of declining sectors.

The Council also calls on the donor community adequately to fund the technical assistance necessary for privatization to be carried out in a timely manner.

13. Privatization of the banking sector is prerequisite for creating an attractive environment for foreign and domestic investment. The Council welcomes progress  achieved so far and urges rapid progress in setting up the Deposit Insurance Agency and liquidating insolvent banks in both Entities.

14. The Council calls for the convocation by April 1999 of a country-wide conference on private sector development, to be co-hosted by the BiH authorities, the EU, World Bank, IMF, USAID, EBRD and other donors and with the participation of BiH private sector representatives.

15. The Council commends the Entities on their fruitful mutual co-operation, in particular in customs administration and tax matters, and looks forward to their reinforcing it in the future.

16. As part of the process of strengthening the common institutions and making them more effective, the Bill authorities will:

• adopt, by September 1999, a Law creating a Supreme Audit Institution;

<25>