Aruba, Curaçao, Sint Maarten, and the Netherlands agreed on the submission of the proposed Kingdom Act Caribbean Organ for Reform and Development (COHO).
The Kingdom Act forms the foundation for a new form of multiyear cooperation between the countries in the Kingdom.
Due to the COVID-19 pandemic, the economies of Aruba, Curaçao, and Sint Maarten were severely affected. The Netherlands offered assistance in combating COVID-19 and also supported food packages. They also provided one billion euros in emergency aid in the form of liquidity loans to support public finances in the event of a sudden halt in economic activity.
As a condition for granting liquidity loans, it has been agreed that the countries would accelerate reforms to strengthen them. The countries are keeping to that agreement. The aim is for the economy and society to better absorb a crisis in the future, which will enable the governments to offer new opportunities to residents and businesses.
The establishment of an independent Caribbean Reform and Development Body was agreed upon to support the countries.
In anticipation of the formal establishment of the COHO, a country package has been agreed with Aruba, Curaçao, and Sint Maarten each. The country packages’ measures will be further developed per country in subsequent implementation agendas for each Caribbean country to take steps in a way that suits them. COHO will support and supervise the implementation of subjects described in the packages. These tasks are now still performed by the Temporary Work Organization (TWO).
The four countries have reached a final agreement on the elaboration of the Kingdom Act this week. The changes compared to previous consultations include clearer agreements with the countries about the processing of the national packages in the various budgets. It was also agreed that the existing objections regarding the powers of the financial supervisors C(A)ft will be further elaborated during the implementation phase.
Also, the agreements on the possible implications of the elaboration of the cooperation protocol between the C(A)ft and the COHO containing the mutual tasks, roles, and responsibilities will be established. COHO and the C(A)ft will consult with the governments of the countries on the cooperation protocol before it can be established or amended.
Aruba, Curaçao, and St. Maarten have drawn attention to several concerns regarding the enforceability of the Act within the constitutional legal order. These concern the safeguarding of the governments’ policy space and autonomy, the concurrence between C(A)ft and COHO, and the room for investments to implement the reforms and flanking policies. The Netherlands promised to enter into discussions and agreements on these matters.
The bill will now go to the parliament of the countries and the Lower House of Parliament, and later in the process, the Senate will also debate it.
