Political agreement between St. Maarten and the Netherlands
The governments of the Netherlands and St. Maarten have reached political agreement on the third tranche of liquidity support 2020. In this agreement, arrangements have been made for a voluntary, but not without obligation, multi-year cooperation between the two countries. This agreement had previously been reached with Curaçao and Aruba.
In exchange for reforms on St. Maarten, the Dutch government will offer new liquidity support and invest in several areas in the development of St. Maarten. For example, the Netherlands will support the agreed structural reforms. In addition to the financial investments needed for the shortages that have arisen as a result of the Corona crisis, the Netherlands will assist with knowledge and expertise. The Caribisch hervormings- en ontwikkelingsorgaan (the COHO) has been set up for this purpose. This body will further develop the reforms together with the ministries on St. Maarten and in consultation with the stakeholders. Furthermore, they will help with its implementation. The COHO will not take over powers from Parliament, the Government and the responsible government bodies; this has been explicitly agreed and recorded in the consultations. However, the COHO is enabled to supervise the implementation of the structural reforms and to impose the consequences to insufficient cooperation.
By reaching this agreement, the Netherlands is making ANG 61.2 million or 30.6 million euros of liquidity support available for St. Maarten for the period from July 1st, 2020 to December 31st, 2020. Also, 30 million euros will be made available for the construction of a new prison and structural improvements in the detention situation on St. Maarten.
State Secretary Knops: “After Curaçao and Aruba, we now have a political agreement with St. Maarten. With this agreement, work is underway on the necessary structural reforms that should make the economy and society of St. Maarten more sustainably resilient. In addition to reforms, there is also room for investment on the island. Reaching this political agreement is an important step. But with this agreement, the process has not been completed. The reforms included in the national package really need to be implemented. Only then will prosperity lie ahead for the citizens of St. Maarten. However, this will require continuous effort from everyone who bears responsibility on St. Maarten. "