Published On: Wed, Mar 21st, 2018

Dutch MPs to receive information from Cft

Cft - 20180131THE HAGUE - The Dutch Parliamentary Committee for Kingdom Relations will receive information from the Financial Supervision Council (Cft) next week.

This happens annually, but given the current situation this time there will not be a routine discussion. More than seven years after 10-10-10, the financial situation of 4 of the 6 islands has deteriorated despite the supervision of fiscal policy. This applies to Curaçao, Aruba, Sint Maarten and St. Eustatius, all of which face financial shortages. Although Bonaire has a balanced budget, the management of public finances is anything but orderly. Only Saba has its finances in order.

For the governments of Curaçao, Aruba and Sint Maarten there is a threat from the Kingdom Council of Ministers if they do not adjust the budgets for this year to the recommendations of the Cft. For Aruba it is the most concrete: the Wever-Croes Cabinet has received a deadline (April 30) to reduce the budgeted deficit from 3.9% to a maximum of 3%.

The meeting of the Cft with the Dutch MPs is important for another reason. Later this year, it must be decided whether or not to extend the financial supervision on Curaçao and Sint Maarten. To this end, the underlying Kingdom Act will first be reviewed by an independent committee. However, it is already clear in advance that it will be concluded that both countries do not (yet) fulfill the conditions to end supervision.

The supervision of Aruba is not regulated by Kingdom Act, but in a national ordinance. This ends at the end of this year. Since the country cannot cope with the financial malaise without the cooperation of the Netherlands, the government in Oranjestad is not in the position to oppose continuation of supervision by the Cft.

Because confidential information is also shared, the meeting of the parliamentary committee with the members of the college takes place behind closed doors.

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