Bosnia and Herzegovina has been lacking the collective political power to address the reforms that were necessary for progress towards EU over the years. The B&H politicians could not agree upon any effective coordination mechanism on EU issues. The lack of coordination mechanism has negatively affected the country’s interaction with the EU. Beside the coordination mechanism the other political issues could not be resolved. The EU Commission intensively facilitated resolution of the Sejdić-Finci ruling of the European Court of Human Rights that B&H has to implement, but without any success. The political actors have also been unable to agree upon countrywide strategy required for Instrument for Pre-Accession Assistance, in sectors, such as: agriculture, energy, transport and environment. These negative developments led to a substantial reduction of funding in these areas. Political disagreements have caused economic stagnation on moving towards European standards. In February 2014, widespread, citizen-led protests have occurred. These protests have underlined the fragility of the socio-economic situation. The EU Commission has launched a New Approach for B&H towards EU aiming to shift the focus towards economic reforms and issues of direct concern to citizens. This included development of a ‘Compact for Growth and Jobs’. The Compact is supposed to be the yardstick for the necessary economic reforms. In this paper we will explain the importance of the New Approach for B&H, as well as what ‘Compact for Growth and Job’ brings to B&H.