Dutch government closes deal with Curaçao, Aruba and Sint Maarten, but discussion on one billion euros corona loans will follow

THE HAGUE - After a period of somewhat soured relations, the Netherlands, Aruba, Curaçao and Sint Maarten formally sealed their reconciliation on Tuesday with a new agreement on reforms on the islands.  

 

The deal is less binding than before, but local parliaments have less say. 

 

In The Hague, State Secretary Alexandra van Huffelen (Kingdom Relations) and the Prime Ministers of Curaçao, Aruba and Sint Maarten signed the new 'Mutual Arrangement' on Tuesday, which replaces the much-criticized previous plan. “This arrangement can count on the support of all four governments, which we as a kingdom can really be proud of,” said Van Huffelen.  

 

The deal is about planning, implementing and enforcing measures by country against poverty, for better education and stronger health care. The Dutch government allocates more than 30 million euros annually for this. The intention is that the islands become more resilient and better prepared for crises such as corona or hurricane Irma. Public finances also need to be in order. 

 

Retirement age up, knife in civil service  

 

For example, the retirement age will rise, and the civil service will also shrink. “Reforms are necessary,” says Van Huffelen. “Financially, economically, socially, but also in education, healthcare, taxation and the rule of law. This is good news for all residents of Aruba, Curaçao and Sint Maarten. We will work together, but we will also check together whether everything is going as planned. It is not the Netherlands that controls, it must be done together.”  

 

The prime ministers of the islands praise Van Huffelen, who is more lenient than predecessor Raymond Knops. Knops was regularly at odds with the local governments. “We have come a long way in how we talk, negotiate and listen to each other,” said Silveria Jacobs, Prime Minister of Sint Maarten. “This arrangement is a win for our people, for the island and for the kingdom. We keep our authority, and we keep ownership.” 

 

After turbulent years, the new arrangement formally returns calm to mutual relationships. The previous Dutch cabinet was regularly on a collision course with islands about demands and financial support. The corona crisis hit the islands hard. The Dutch government came to the rescue with gifts and an emergency loan totaling 1 billion euros. In return, the islands had to speed up all kinds of reforms.  

 

That combination – the loan with strict conditions – angered politicians in the former Netherlands Antilles. Especially since the new, independent administrative body COHO would supervise the implementation of all plans. After protests from the parliaments on the islands, this Caribbean Body for Reform and Development (COHO), according to critics an echo of the 'colonial past', was killed with far too much coercion from the Netherlands and too little say from local politics. For example, the global corona crisis would be 'misused'.  

 

The new Mutual Arrangement differs little from COHO in terms of content. However, the financial rules are less strict in general, and it is assessed per project whether it is going well. The islands themselves are also involved in the planning and implementation of the measures. 

 

Parliaments to say less  

 

However, the local parliaments are more sidelined in the scheme. The Dutch cabinet makes agreements with the governments of the islands. If a disagreement arises about finances or implementation, a 'mediator' must be appointed by State Secretary Van Huffelen and the relevant Prime Minister of the island. 

 

In the coming months, there will be another in-depth discussion between the Dutch cabinet and the governments of the islands about the repayment of the 1 billion euros in corona loans. The cabinet assumes that the money will be returned, but the islands regularly call for remission. 




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