Bosnia forms new government

Voting went smoothly but harmful paralysis followed

By Alix Kroeger in Sarajevo

Bosnia Hercegovina has a new government, three months after parliamentary elections in which the non-nationalists gained a slim majority for the first time since independence in 1992.

The process of forming a government has been paralysed by a protracted power struggle with the nationalist parties.

Last week, the International Monetary Fund and the World Bank warned that future loans would not be released if the government crisis continued.

Key ministers

Prime minister: Bozidar Matic

Foreign Minister: Zlatko Lagumdzija

Human rights and refugees minister: Kresimir Zubak

There has been political stalemate ever since November's parliamentary elections when the Nationalist parties failed to get more than 50% of the vote.

The moderate coalition, known as the Alliance for Change, has been able to form a government only after a bruising power struggle with the nationalists, in particular the Bosnian-Croat HDZ.

The HDZ tried to block the nomination of a non-nationalist Croat as Prime Minister, but were out-voted.

Now parliament has confirmed the nomination of Bozidar Matic, a Croat from the multi-ethnic Social Democrats - the largest single party in parliament.

Social Democrat leader Zlatko Lagumdzija becomes Foreign Minister, while Kresimir Zubak of the moderate Croat NHI will be minister for human rights and refugees.

Fragile coalition

However, the alliance's troubles may be just beginning.

Campaigning eventually paid off for Zlatko Lagumdzija

Its majority is slim and there is speculation that the moderate Croats may end up walking out.

Governing will not be easy. Bosnia's finances are in a mess. Foreign aid is being cut back, without investment coming in to replace it.

Last year the international community intervened to impose laws on financial reform needed for the release of loans from the IMF and the World Bank.

Bosnian politicians, nationalists and non-nationalists alike, have been reluctant to make unpopular but necessary changes.

The pressure for reform may face even more strain on an already fragile coalition.