This report covers the main macroeconomic releases from December 6 until January 5, 2015 as well as the financial and political events that took place in Bosnia during this period. The government of Bosnia’s Republika Srpska said on December 10 it will end cooperation with national courts, prosecutors and the State Investigation and Protection Agency (SIPA) following raids in the town of Novi Grad, apparently in connection to a war crimes investigation. Few days later, Republika Srpska stepped back from its decision to break ties with the State Investigation and Protection Agency (SIPA) and initiated efforts to sign a new cooperation agreement. Bosnia’s State Investigation and Protection Agency (SIPA) has carried raids on several locations and arrested 11 people suspected to participate in radical terrorist organisations, having close ties with ISIS. The parliament of Bosnia’s Republika Srpska elected the daughter of former Bosnian Serb leader Radovan Karadzic, Sonja Karadzic-Jovicevic, as deputy speaker. The European Parliament decided to suspend the trade privileges of Bosnia as of January 2016 unless the country adjusts its Stabilisation and Association Agreement (SAA) with Croatia’s entry in the bloc. The World Bank has adopted a new Country Partnership Framework (CPF) for Bosnia & Herzegovina for 2016-2020, which includes some $750mn of new lending. Key points: • CPI deflation stayed at 1.8% y/y for the third month in a row in November • The working-day adjusted industrial production rose by 2.7% y/y in November • The foreign trade gap narrowed 8.1% y/y to BAM6.3bn (€3.2bn) in the first 11 months of 2015