Published On: Wed, Jul 15th, 2015

Jardim: Research monetary union is not a priority

Jose JardimWILLEMSTAD – According to the Minister of Finance, Dr. Jose Jardim, the research into the functioning of the monetary union between Curaçao and Sint Maarten is currently not a priority for the government. The Minister stated this in a letter to the Members of Parliament this week.

The Minister pointed out that the governments of both countries have signed a joint declaration on March 31 last year in which Curaçao’s desire to have an independent central bank was stated. This statement was the reason for Curaçao’s government to deprioritize this research.

The leader of the PAIS faction in parliament, Alex Rosaria asked about the state of affairs concerning the research into the functioning of the monetary union between the two islands. The original intention was to have international agencies conduct this research.

Jardim’s answers to the MP indicated that the monetary union between the two islands has not been functioning well. Since the new political status on October 10, 2010 until 2012, there were not regular consultation between the Ministers of Finance of both islands. This complicates the functioning of the monetary union. Since mid-2013 there have been regular consultations between the Ministers of Finance of both islands to discuss policies in this area, according to Jardim.

“But this is not enough,” said Jardim. The consultations in the area of public finances is not sufficient for the survival of the monetary union. “We have to coordinate policies in other areas. In relation to the macroeconomic framework, we have to talk about matters that affect the economies, such as market forces, labor markets and institutional frameworks related to legislations in force in both countries,” said the Minister.

The Minister indicated in his letter that without these consultations the foundation of the monetary union will erode. The lack of coordination will lead to both Curaçao and Sint Maarten to walk different paths to shape their societies and economies.


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