BOSNIAN Muslims and Croats agreed yesterday to form a local administration in the city of Mostar, averting a major crisis in the Bosnian peace process and paving the way for countrywide elections in September.
European Union mediators said the accord was based on the results of local elections held on June 30th, which the Croats had refused to recognise.
The deal was struck after three days of gruelling negotiations extending well beyond an EU deadline for agreement.
"Of course, there are still plenty of problems in the city, but I think a big step has been taken," Mr Mijo Brajkovic, the Croat mayor of the western part of Mostar, told a news conference.
"Now comes the time for reconstruction and economic recovery, when people will start to work," Mr Brajkovic said.
The two factions fought a bitter 10 month war in 1993-94, while the main Musli-Set conflict raged in Bosnia. Some of the worst fighting occurred in Mostar. Under yesterday's accord, the first session of the joint city assembly should be held on Thursday to elect a new mayor and deputy mayor.
The EU special envoy, Sir Martin Garrod, expressed relief that the two sides had resolved the crisis caused by a Croat boycott of the newly elected city council.
It has been quite difficult and we have had quite a few sleepless nights," he said.
The EU presidency in Ireland welcomed yesterday's accord and said it would propose an extension of the Mostar mission under Sir Martin's leadership.
Europe and the United States, concerned about Bosnia's national elections in September, had placed heavy pressure on Croatia to ensure compliance from their proteges in Mostar.
Under the accord, the Croats agreed the city assembly should meet at least every 60 days, dropping an earlier demand for it to meet only once, pending a decision by the constitutional court on the election results.
The Croats had filed a complaint with the court and repudiated the election outcome citing alleged irregularities at a polling station for refugees in Germany. But an EU ombudsman ruled that any irregularities were too limited to affect the election results.
A spate of violent incidents in the past 24 hours underlined rising tensions in Mostar. Nato said three shots were fired at a Muslim Croat police patrol and two explosions were heard overnight.
THE Tanaiste and Minister for Foreign Affairs, Mr Spring, has welcomed yesterday's Bosnian Croat agreement to set up a unified local administration in Mostar on the basis of the June 30th election results.
The Tanaiste himself had played a part in the long and difficult negotiations prior to the agreement, along with the EU special envoy in Mostar, Sir Martin Garrod, and an Irish EU Presidency negotiating team led by Mr Thomas Bolster.
Mr Spring was involved in a number of direct contacts with President Izetbegovic of Bosnia, President Tudjman of Croatia and the Croatian Foreign Minister, Mr Granic.
Mr Spring said that, in the light of this positive development, he would now, as President of the Council of Ministers, be recommending that the EU maintain its presence in Mostar in order to ensure an orderly transfer of responsibilities to the local mayor and deputy mayor.