Dutch Government outlines new policy direction for Caribbean Kingdom Relations

THE HAGUE--The Dutch government has outlined a new policy direction for relations within the Kingdom, identifying governance, socio-economic resilience, sustainable development and more effective cooperation as central priorities for Aruba, Curaçao, St. Maarten, Bonaire, St. Eustatius and Saba.

In a policy letter to the Second Chamber, State Secretary of Kingdom Relations Eric van der Burg stated that the Kingdom is more than a constitutional arrangement, describing it as a living community of countries and islands with a shared history and a future that must be shaped together. The Dutch government said it will work with the autonomous countries Aruba, Curaçao and St. Maarten, as well as the public entities Bonaire, St. Eustatius and Saba, to deliver visible progress for residents on both sides of the Atlantic.

The policy letter identifies urgent challenges facing the islands, including geopolitical tensions, climate change, economic vulnerability, infrastructure needs, public administration capacity and social security concerns. At the same time, the Dutch government said these challenges also create opportunities to strengthen livelihoods, diversify economies, improve resilience and reinforce the position of the islands within the region.

The government will focus on three main priorities: building decisive and results-oriented governance, strengthening social and economic resilience and sustainable development, and creating clearer frameworks and opportunities for effective cooperation within the Kingdom.

For Aruba, Curaçao and St. Maarten, the Dutch government reaffirmed that the countries are autonomous and responsible for the quality of their own governance. However, the letter also stresses that major Kingdom-wide challenges cannot be viewed separately and require equal cooperation, particularly in the areas of the rule of law, sustainable public finances, security and economic development.

The Dutch government said it will continue supporting Aruba, Curaçao and St. Maarten in the fight against undermining and cross-border crime through capacity, expertise and resources. This includes continued investment in the Recherche Samenwerkingsteam, the Public Prosecutor’s Offices, and the Joint Court of Justice. For St. Maarten specifically, the government will continue support totaling €30 million to help improve detention facilities.

The letter also confirms that the State Secretary will enter discussions with Curaçao and St. Maarten on workable arrangements for repayment of the remaining 2010 loans. The objective is to establish a sustainable debt position without putting future investment capacity at risk.

In the area of economic resilience, the Dutch government said the Caribbean part of the Kingdom occupies a strategic position at the crossroads of geopolitical and economic interests. This creates opportunities in trade, logistics, regional cooperation and emerging growth markets, while also exposing the islands to risks such as hurricanes, criminal activity and geopolitical instability.

To support economic development, the Dutch government intends to establish a Caribbean Economic Growth Platform to better connect innovation, entrepreneurs and capital across the six islands and the region. Entrepreneurs, the financial sector, educational institutions, the islands and relevant ministries will be involved.

The government also plans to open the new National Investment Institution to the Caribbean part of the Kingdom, while taking into account the scale and characteristics of the islands. Existing structures such as Qredits and other financing instruments will also be considered, although the government acknowledged that not all Dutch instruments are suitable for local island markets.

Food security is also identified as a priority. The Dutch government said €6 million will be invested in improving infrastructure conditions such as water management, available land, cold storage and logistics. An additional €18 million will be placed in a revolving fund to give entrepreneurs, including farmers and fishers, access to financing. Training will also be supported to encourage innovative and sustainable food security solutions.

The letter also announces the government’s intention to strengthen cooperation with the European Union to support economic development and resilience across the Caribbean part of the Kingdom. This includes better use of the islands’ relationship with the EU as Overseas Countries and Territories, access to EU programs, and initiatives tied to sustainable economic cooperation, maritime and digital connectivity and the energy transition.

For St. Maarten, the Dutch government also said it will remain actively involved in supporting the implementation of the Recovery Trust Fund, financed by the Netherlands and managed by the World Bank. The Trust Fund is scheduled to end in 2028. The government said it will continue bilateral programs that help accelerate the realization of projects.

The policy letter further proposes a recurring Kingdom Conference involving the four governments of the Kingdom as full partners. The Dutch government wants to explore with Aruba, Curaçao and St. Maarten whether the first such conference can be organized before the end of the year. The conference would provide a platform to discuss developments, challenges and opportunities for cooperation, including energy, trade, education and logistics.

The Dutch government also noted that the mutual arrangement on reform cooperation with Aruba, Curaçao and St. Maarten expires in 2027. Based on an independent evaluation, achieved results and the needs of the countries, the government will discuss whether priority reforms from the country packages should be concluded, secured or continued.

For Bonaire, St. Eustatius and Saba, the Dutch government emphasized its direct responsibility to provide residents with a more equal position within the Netherlands, taking local circumstances into account. The principle of “comply or explain” will be sharpened, meaning that new Dutch policy and legislation should in principle apply to the Caribbean Netherlands unless there are strong and well-explained reasons to deviate.

The letter also outlines plans to improve governance in Bonaire, St. Eustatius and Saba through stronger integrity systems, better protection for persons who report integrity violations, improved procurement procedures, participation in the Monitor Integrity and Safety, and preparation for the introduction of Bibob legislation. That legislation is intended to prevent government decisions such as permits, subsidies, real estate transactions and public contracts from unintentionally facilitating criminal activity.

The Dutch government also intends to expand the number of island council members and commissioners in Bonaire, St. Eustatius and Saba before the March 2027 island council elections. Revisions to the WolBES and FinBES laws are also being prepared to strengthen public administration, intergovernmental relations, financial structure and financial supervision.

Public services in the Caribbean Netherlands will also be further improved, with the goal of bringing service delivery more in line with European Netherlands standards online, by telephone and at service counters. Particular attention will be placed on digital services and digital infrastructure.

The policy letter also addresses poverty and cost-of-living pressures in Bonaire, St. Eustatius and Saba. From 2027, the Dutch government will make €30 million structurally available for the Caribbean Netherlands to support a livable social minimum and reduce the cost of living. The government is also considering further expansion of utility subsidies in the short term.

The government said it will continue investing in infrastructure, nature, housing, connectivity and climate resilience in Bonaire, St. Eustatius and Saba. A multi-year cooperation program will be developed to better coordinate policy for the physical living environment, including infrastructure, spatial development, housing and connectivity.

The letter closes by emphasizing that the relationship with Aruba, Curaçao and St. Maarten is based on equality, dialogue and mutual respect, as anchored in the Kingdom Charter. The Dutch government said it values the direction the countries have chosen for themselves and the efforts they are making toward resilient economies and safe societies.

According to the Dutch government, strengthening the Caribbean part of the Kingdom will also strengthen the Kingdom as a whole, particularly in a changing global environment.

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