The discussion on a financial instruction for Aruba (see related story) is very relevant to both other Dutch Caribbean countries as well. The Committee for Aruban Financial Supervision (CAFT) insists the 2022 deficit remains too high because savings were not sufficiently implemented, while the government in Oranjestad says the shortfall is already being lowered and it would not be prudent to force the issue with more measures including possible layoffs that put undue pressure on the people.
The Wever-Croes II Cabinet will now present its detailed response and adjusted budget for the Kingdom Council of Ministers RMR to make a final decision in October. By that time, however, additional reforms would have only a limited effect on the current year.
Meanwhile, Aruba’s request for third quarter COVID-19 crisis liquidity support stays on hold, as does that of St. Maarten. It appears Curaçao won’t need any, but all three have a common problem.
Although yet to fully comply with conditions set by The Hague to phase out the coronavirus-related 12.5% public sector benefits reduction, each gave something back to their affected employees. Aruba removed 5% of its 12.6% cut, Curaçao paid out a one-off 1,750 Netherlands Antillean guilder gross “compensation” and St. Maarten restored the suspended 6% vacation allowance.
Dutch State Secretary of Home Affairs and Digitisation Alexandra van Huffelen confirmed that all this was done without approval of neither the Committee for Financial Supervision CFT (CAFT for Aruba) nor the RMR and could have consequences. Nevertheless, she was generally positive about the economic recovery on the islands.
The latter is important, because – as she herself stated – a better life for everyone continues to be the focus. And one can hardly deny that social circumstances have changed for the worse recently due primarily to the war in Europe and its impact on global consumer prices, with the islands needing to import practically everything.
Any small disagreements or setbacks may never be allowed to jeopardise what has been achieved so far in rebounding from the pandemic as well as Hurricane Irma in St. Maarten and closure of their respective oil refineries in Aruba and Curaçao. That process still fully underway requires much resolve but also understanding, maturity and some patience on all sides.
