The Constitutional Court’s ruling on a case brought by the Ombudsman (see related story) is sensible. Let’s face it, had the three contested temporary national ordinances to cut benefits in the public sector due to the COVID-19 crisis been declared unlawful, there were going to be serious consequences.
Neither government nor its companies and subsidised entities would be able to refund their personnel the money withheld since July 1 last year, especially under the current circumstances. The Netherlands is certainly not going to pay for that.
In addition, St. Maarten has already racked up a considerable debt – even dating back to post-Hurricane Irma of September 2017 – in Dutch liquidity loans. This was badly needed to keep going and help businesses and their employees, sole entrepreneurs, independent operators and persons left jobless survive.
The latter assistance ended per October 1, making it even more difficult for the private sector, where many workers gave up 20 per cent of wages, to raise enough taxes for the national treasury. Any sudden major increase in expenditures at this juncture is likely to have a disastrous financial impact and put the country on the brink of bankruptcy.
Such a development could also easily undermine a still frail recovery of the tourism economy on which the livelihood of practically everyone, including civil servants, ultimately depends. We are all in this together.
