The proposed Bosnian Serb referendum on the state-level judiciary.
The Serb-dominated entity of Republika Srpska (RS) is proposing a referendum challenging the authority of the Bosnia-Hercegovina (BiH) judiciary and Bosnia's weakened international supervisor, the high representative. The initiative comes amid already heightened tensions relating to the 20th anniversary of the Srebrenica massacre. Such a referendum would challenge Bosnia's territorial and constitutional sovereignty.
A strongly worded US embassy statement on the referendum has warned of possible legal actions against the RS leadership.
The EU reaction has been softer, reflecting diverging US-EU views of the seriousness of the problem and how to resolve it.
Failing agreement on a reform programme with the IMF, Bosnia's two entities must turn to private lenders to finance budget deficits.
