THE HAGUE – Aruba is not being treated differently than Curaçao and Sint Maarten in the development of a new Kingdom Act on financial supervision. That clarification was made by Dutch State Secretary for Kingdom Relations, Zsolt Szabó (PVV), in response to parliamentary questions from MP Peter van Haasen (PVV).
Van Haasen had expressed concern that Aruba was being granted a “more lenient process” regarding the development of the law, especially after the previous Rijkswet Aruba financieel toezicht (RAft) was officially withdrawn earlier this year. The withdrawal followed Aruba's lack of support for the original proposal and was formalized in the Administrative Agreement signed on June 4, 2024, which outlines the framework for a new consensus-based Kingdom Act aimed at securing sustainable public finances for Aruba.
Szabó firmly rejected the suggestion of unequal treatment, stating: “There is a thorough legislative process underway. Aruba is working jointly with the Netherlands on the new consensus Kingdom Act, and I do not see this as creating any form of legal inequality within the Kingdom.”
He further explained that both the former RAft and the new proposal are based on consensus, as outlined in Article 38(2) of the Kingdom Charter. This is distinct from standard Kingdom Acts, which only cover Kingdom affairs such as nationality.
Financial Conditions and Oversight
The new consensus law will include provisions on interest rates, budget norms, and independent financial assessments. Aruba currently operates under the Landsverordening Aruba financieel toezicht, as well as a series of financial protocols that closely resemble the framework used for Curaçao and Sint Maarten under their own Kingdom Act (Rft), which is also consensus-based.
On the matter of a 1.8% interest rate reduction granted to Aruba in 2024, Van Haasen questioned whether it should be reversed until a new law is in place. Szabó responded that the interest reduction was part of the June 2024 agreement and that there was no reason to retract it.
Szabó also underscored that the new legislation is being developed with the advice of the International Monetary Fund (IMF), ensuring that the law will be based on international best practices and help achieve fiscal sustainability — a key priority in his governance agenda.
No Double Standard, Says Szabó
The State Secretary reiterated that Aruba has not ignored any formal conditions and that there is no discrepancy between Aruba’s process and that of the other Caribbean countries. “This approach contributes to sound financial governance,” Szabó emphasized, noting that the IMF’s involvement lends credibility to the legislative process.
The debate reflects growing scrutiny in the Netherlands over how financial agreements with the Caribbean countries are structured and enforced, especially in light of post-COVID loan refinancing arrangements and concerns over good governance.
The new consensus Kingdom Act is expected to be finalized before the May 2025 deadline agreed upon by Aruba and the Netherlands.
