After requests to deviate from the no-deficit rule due to the COVID-19 crisis were honoured by the Kingdom Council of Ministers RMR (see related stories), all three Dutch Caribbean counties could breathe a sigh of relief. Their respective 2022 budgets may now be signed into law and take effect rather than having to use last year’s version.
It also means suppliers and service providers getting paid soon, which is obviously very important under the current socioeconomic circumstances. New policies that require funding can be executed as well.
These include restructuring measures in the so-called “country packages” as condition for liquidity support from the Netherlands, although separate budget adjustments will still be needed for some. Thanks to incoming Dutch State Secretary of Kingdom Relations Alexandra van Huffelen, her predecessor Raymond Knop’s contested move tying the deviation approval to a Note of Amendment on the Caribbean Body for Reform and Development COHO that is to supervise implementation of the packages was dropped.
However, the legal process to establish the latter must continue, as is the case with talks on additional soft loans for the second, third and fourth quarters of 2022. As hard as Aruba, Curaçao and St. Maarten work to restore their tourism economies, they realistically won’t be able to do without financial assistance the rest of this year yet.
Nevertheless, long-term prospects are favourable and it’s important that The Hague not only understands this but gives the islands the necessary space to bounce back. Ensuring sustainability remains essential, but any steps that hamper a quick and strong recovery should be avoided as best possible.
This is most definitely not the time to make life more difficult for the proverbial “goose that lays the golden eggs.”
