St. Maarten will receive a €30 Million grant in Dutch support if Parliament extends country reform package

GREAT BAY--St. Maarten could benefit from approximately €30 million in Dutch financial support to strengthen government operations, improve financial management, address staffing shortages and complete ongoing institutional reforms, provided Parliament approves a proposed two-year extension of the Mutual Arrangement for Cooperation on Reforms and the accompanying Country Reform Package.

The potential funding was highlighted during Tuesday's Central Committee meeting of Parliament, where Prime Minister Dr. Luc Mercelina and members of his technical team presented the proposed extension, which would allow cooperation with the Netherlands to continue beyond its scheduled expiration in April 2027 until April 2029.

Maria van der Sluijs-Plantz, former chairperson of the independent evaluation committee responsible for assessing the reform cooperation between the Netherlands, St. Maarten, Aruba and Curaçao, told Parliament that approximately €30 million has been identified for St. Maarten in the Dutch budget.

She emphasized that the proposed financial support would be provided through subsidies rather than loans, meaning the funds would not have to be repaid.

However, the continuation of the arrangement and access to the proposed support remain subject to parliamentary approval and the applicable Dutch budgetary process.

Van der Sluijs-Plantz explained that Aruba has approximately €8 million identified for continued reform cooperation, alongside a similar contribution from its own resources, while €8 million has also been reserved for Curaçao, where discussions concerning priorities are continuing.

She attributed St. Maarten's proposed allocation to the country's greater institutional challenges and the work undertaken by local government officials to establish a focused reform agenda for the next two years.

Independent Evaluation Finds St. Maarten Needs More Time

Presenting the findings of the independent evaluation, Van der Sluijs-Plantz explained that the reform cooperation had produced measurable progress across the Caribbean countries, but that many initiatives remained incomplete or had not yet become permanent parts of government operations.

The evaluation found that the original reform agenda was too ambitious for the administrative capacity available within the countries, particularly St. Maarten.

According to the committee, St. Maarten entered the process with the most vulnerable institutional position, partly because its small public administration has limited personnel and resources to execute complex reforms while maintaining everyday government services.

The commission also found that officials responsible for implementing reforms were often required to manage the additional responsibilities alongside their regular duties, contributing to delays.

Although the cooperation helped initiate improvements, progress remained dependent on administrative continuity, technical support and the availability of qualified personnel.

The committee concluded that ending the arrangement in April 2027 would be premature and recommended a two-year extension, together with discussions on a more sustainable framework for future cooperation.

Van der Sluijs-Plantz also warned that uncertainty surrounding the extension could result in the loss of experienced personnel working on reform projects, as employees seek other employment opportunities.

Mercelina: Focus Must Be on Results for Residents

Prime Minister Mercelina told Parliament that the next phase must be measured by improvements in government's ability to deliver reliable services to the population.

He recalled that the Country Reform Package originated during the COVID-19 pandemic, when St. Maarten required financial assistance following the collapse of tourism activity and the resulting pressure on government finances.

The original package was signed in December 2020, with implementation beginning in 2021. The cooperation subsequently received its formal legal framework through the Mutual Arrangement in 2023.

Mercelina acknowledged that progress had been made in several areas, including efforts to replace government's outdated financial administration system, improve budget management, assess the labor market and education system, and develop the National Mental Health Strategic Plan for 2025-2035.

However, he emphasized that the next phase should concentrate on completing projects already underway and strengthening the foundations of the public administration.

The Prime Minister identified four priorities: improving government's human resource management and recruitment capacity, strengthening legal affairs, reviewing the organization and efficiency of the public administration, and continuing reforms in financial management and tax administration.

The approach is centered on establishing the basic systems, personnel and procedures needed for government institutions to function more effectively.

New Legal Support Pool and Modernized Government Systems

Angelique Gumbs, Head of the Department of Interior and Kingdom Relations (BAK), outlined how the proposed extension would narrow the focus of the Country Reform Package.

Rather than continuing the original wide-ranging agenda, the next phase would prioritize financial management, public-sector efficiency and taxation, while completing ongoing initiatives.

Additional attention would be given to human resources, legal services, information technology, facility management and the organization of government departments.

A significant component involves the establishment of a legal support pool to help address delays in preparing and reviewing legislation.

Responding to questions from MP Sjamira Roseburg, the Secretary-General of General Affairs explained that recruitment for the pool is beginning, with the first personnel expected to be in place in early 2027.

Initially, the legal specialists would concentrate on reviewing priority legislation and preparing draft laws for submission to the Council of Advice and subsequently Parliament.

As the pool becomes more established, it could also assist ministries with drafting legislation.

Roseburg also questioned what measurable results government expects to achieve by the proposed completion date in 2029.

In response, government representatives identified a modernized internal financial administration system, improved human resource management, stronger recruitment and retention policies, and more effective shared services across the seven ministries.

They explained that implementation agendas and progress reports would continue to be prepared every six months to document completed activities, outstanding work and upcoming deadlines.

MPs Raise Questions About Capacity and Local Expertise

Several Members of Parliament expressed support for continuing the reform cooperation while emphasizing the importance of producing sustainable results.

MP Roseburg welcomed the focus on strengthening government's institutional foundations but sought clarification on the timetable for the legal support pool and the specific improvements expected by 2029.

MP Veronica Jansen-Webster focused on the need to attract qualified St. Maarten professionals living abroad.

She questioned whether government was doing enough to offer competitive employment conditions, arguing that many qualified professionals would be reluctant to leave established careers overseas if local compensation packages did not adequately reflect their experience and financial responsibilities.

Jansen-Webster encouraged government to use the proposed financial support to attract local expertise, including policy advisers and professionals capable of helping ministries complete reform projects.

MP Francisco Lacroes also expressed support for the proposed extension, referring to his previous involvement with projects under the reform arrangement.

Prime Minister Mercelina acknowledged the difficulties involved in attracting professionals back to St. Maarten, including differences in salaries, career opportunities, family circumstances and educational considerations.

He maintained that government remains committed to strengthening recruitment efforts and increasing the number of qualified professionals available to support national development.

Parliamentary Approval Still Required

The proposed extension follows a formal request submitted by Prime Minister Mercelina to Parliament on October 30, seeking approval to continue the Mutual Arrangement beyond April 2027.

The Netherlands has already indicated its intention to support the continuation of prioritized reforms, subject to the necessary agreements and parliamentary approvals.

Mercelina explained that once Parliament approves the extension, government can formally communicate that decision to the Netherlands, allowing the next phase of financial and technical cooperation to proceed.

At the conclusion of Tuesday's Central Committee meeting, Vice President of Parliament MP Christopher Weever announced that an advice would be prepared and forwarded for consideration during a public meeting of Parliament, where the proposed extension would be submitted for formal decision-making.

The arrangement has therefore not yet received final parliamentary approval. If approved, the extension would provide St. Maarten with an additional two years to complete priority reforms and strengthen the government systems needed to sustain those improvements beyond 2029.

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