Leaders of Bosnia’s main Serbian, Croatian and Muslim parties have agreed to form a national government, ending a 14-month political stalemate.
There has been no agreement on the composition of the administration since elections in October 2010.
After almost four hours of negotiations on Wednesday, it was decided the post of prime minister will go to a Bosnian Croat in what is still a very ethnically divided country.
The new government will now pass a budget and get its bids for European Union and NATO memberships back on track.
There remain tensions between the rival factions. At meeting with the EU’s foreign affairs chief Baroness Ashton in May, Republika Srpska President Milorad Dodik accused Bosnia’s judicial system of being biased against Serbs and only cancelled a referendum on it after assurances the EU would review the situation.