"The leaders of the six strongest parties in the country achieved a great political agreement on 28 December that included the formation of a Council of Ministers of BiH, after almost 15 months since the October elections of 2010. The agreement included the obligation of adopting a budget for 2011 and two key laws, the Law on State Aid and the Law on the Census", Inzko's report reads, which states that soon after followed the formation of the Council of Ministers on 10 February 2012.

The next good news, in the High Representative's opinion, happened on 9 March, when the leaders of the sextet signed an agreement on the resolution of the issue of military and state materiel, which will open the path for BiH to full membership in the MAP.

Noting that none of the five objectives and two conditions for closure of the OHR have been met, Inzko in the report highlights encouraging signs of progress. The agreement on military and state materiel opens the door to a potentially acceptable and sustainable solution on the issue of apportionment of property between the state and other levels of government, as well as an acceptable and sustainable solution for the resolution of military materiel, which are also two of the five objectives and two conditions that the Governing Board of the Peace Implementation Council laid out for the closure of the OHR.

"Besides that, the PIC has thoroughly reviewed the possibility of termination of supervision over Brcko District, which we are on the path to achieving another goal. However, further dynamics of nationalist politics and willingness of some to challenge the peace agreement remain, especially the sovereignty and territorial integrity of the country", Inzko emphasized in the report, which underlines that these observations apply to politicians in Republika Srpska, especially its president Milorad Dodik, who regularly calls BiH a state union, and RS the state of one constituent people.

RS carries out actions against state institutions through attempts to abolish the Law on the Court and Prosecutor of BiH.

"Attempts to undermine the Law on the Courts of RS, enacted in 2011, and amendments to the Election Law of RS which reduce the authority of the Central Electoral Commission of BiH, have been made. The RS authorities also tried to repay the RS part of the state debt by bypassing authorized institutions on the state level", Inzko's report stresses, which also states the concern over developments in the Federation of BiH that include obvious attempts to hinder reform.

He added that there are still major problems around elections in Srebrenica and Mostar, where political leaders should find the best solution that would not additionally regress in BiH in the past few months.