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The issue of whether Iceland should reimburse the UK and the Netherlands €3.9bn lost by British and Dutch savers in the Icesave crash is a bilateral one and should not affect the country's EU accession prospects, Enlargement Commissioner Štefan Füle told the European Parliament yesterday (8 March).

Officials from Bosnia and Herzegovina have traded accusations with representatives of the international community, who have been helping to manage the country since the 1995 Dayton Peace Agreement. The development came just days ahead of a Western Balkans summit in Sarajevo on 2 June, intended to reaffirm the region's EU membership prospects.

Bosnian Prime Minister Nikola Spiric has written to the UN accusing the international community's envoy of destabilising his country, the local press reported on 23 May.Spiric urged United Nations Secretary-General Ban Ki-moon to remove the international community's high representative in Bosnia, Valentin Inzko, who has the power to pass laws and sack officials in the country's two semi-autonomous entities, AFP reported."Continuing foreign intervention in local political issues is destabilising and undermines the creation of a consensus [...] as well as reform efforts," the Bosnian Serb leader is quoted as saying.The Office of the High Representative (OHR) "should be closed in order to enable Bosnian political leaders to achieve legitimate progress," he said, saying that Inzko, an Austian diplomat, was "contributing to non-functional governance in Bosnia".In return, Inzko blamed leaders of Bosnia and Herzegovina for what he called a "deterioration" of political dialogue.

Despite unanimous opposition from leading media freedom organizations, the Hungarian parliament has adopted a controversial law overhauling the state-owned media and creating a Media Council with utterly disproportionate powers. The law was passed by an overwhelming majority of votes (256 to 87) on 21 December. Appointed directly by the government, the Media Council’s five members will not only have a right of oversight but also the authority to impose heavy fines (of up to 700,000 euros for a TV station and 89,000 euros for an online publication) for content that is “not politically balanced” or “violates human dignity.” The council can also punish offences against religion and the nation, while journalists can be forced to reveal their sources when national security is involved. Although the government intends to ensure “fair balance” in the media, it has not respected this principle in its choice of Media Council members, who all belong to the ruling Fidesz party. The council is supposed to enforce “balance” but it will have no opposition representatives. “Our organization, a 2005 Sakharov Prize laureate, urges the European Parliament’s president and bureau to make discussion of this law an emergency item on the next plenary session’s agenda,” Reporters Without Borders said.

Leaders of Bosnia's divided communities are meeting to try to end years of political stalemate and reduce the danger of renewed conflict.European Union and United States representatives are mediating the talks in Sarajevo. The aim is to bring in constitutional reform and prepare Bosnia for eventual EU and NATO membership. But the Bosnian Serbs strongly oppose any moves that would jeopardise their desire for more autonomy.

The high representative in Bosnia is an international figure with considerable domestic power. The current incumbent, Valentin Inzko, has described the situation in the country as serious. "Bosnia is in a state of paralysis," he told the BBC. "Things are not moving at the moment. And I deeply regret all this nationalist rhetoric. It's not helpful, it's destructive and many, many wars have started with bad rhetoric. So we should really avoid it."

Far from injecting new impetus into the European Union's foreign policy, the Lisbon Treaty, which came into force on December 1, is likely to further sap its effectiveness.As a result of the treaty's coming into effect, the institutional underpinnings and basic assumptions of EU foreign policy now require adjustment in a manner that will diminish the importance of its communal (also described, variously, as the supranational, federalist, or integrationist) element.