Caribbean, European Netherlands Close In on Bailout Deal

Eugene Rhuggenaath Raymond Knops
Prime Minister Eugene Rhuggenaath of Curaçao and Dutch state secretary Raymond Knops answer questions from reporters in The Hague, June 14, 2019 (ANP/Lex van Lieshout)

Aruba, Curaçao and Sint Maarten are closing in on a deal with the European Netherlands for hundreds of millions of euros in support to cope with the impact of COVID-19.

The sticking point in negotiations has been the Netherlands’ insistence that Dutch officials would carry out and monitor economic reforms on which the bailout is conditioned; a demand Caribbean leaders argue is incompatible with their autonomy.

Prime Minister Eugene Rhuggenaath of Curaçao, the largest of the three self-governing islands, told lawmakers this week that a compromise is at hand.

The Dutch supervisors would remain, but any decisions they take that affect spending and taxes would need to be ratified by the island legislatures.

The government of Curaçao would also be consulted on the appointment of one of the three supervisors.

Antilliaans Dagblad reports that a majority of lawmakers on Curaçao could agree to those terms.

But Raymond Knops, the Dutch state secretary for the interior, sounded less optimistic on Tuesday, when he told parliamentarians in The Hague that the three islands are currently unable to “carry” their autonomy. Read more “Caribbean, European Netherlands Close In on Bailout Deal”

Dutch King Announces Borrowing, Investments to Weather COVID-19

Willem-Alexander of the Netherlands
King Willem-Alexander of the Netherlands reads out his annual speech from the throne in the Grote Kerk in The Hague, September 15 (Rijksoverheid)

The Netherlands’ ruling center-right coalition unveiled an expansionary budget on Tuesday, when King Willem-Alexander read out his annual speech from the throne to set out the government’s priorities for the next fiscal year.

Whereas the Dutch government, then also led by Mark Rutte, raised taxes and cut public spending during the last economic crisis to keep its budget deficit under the EU’s 3-percent ceiling, it now argues against austerity and is borrowing the equivalent of 7.2 percent of GDP (down from an earlier estimate of 8.7 percent).

Rutte argues the savings made in previous years allow the government to avoid cuts this time.

The Dutch economy is projected to shrink 5 percent this year as a result of COVID-19 and grow 3.5 percent next year, when unemployment would reach 545,000, or almost 6 percent. Debt as a share of GDP is projected to rise from 49 to 61 percent. Read more “Dutch King Announces Borrowing, Investments to Weather COVID-19”

Dutch Caribbean Islands on the Brink

Willemstad Curaçao
View of Otrobanda from across the Saint Anna Bay in Willemstad, Curaçao (iStock/Flavio Vallenari)

Time is running out for the autonomous Dutch islands in the Caribbean to do a deal with their former colonizer.

Coronavirus has brought tourism, the mainstay of the island economies, close to a standstill. Tax revenue has dried up while unemployment has soared. Without support from the European Netherlands, the governments of Aruba, Curaçao and Sint Maarten will run out of money in weeks.

The Dutch are willing to help, but only if the islands accept temporary Dutch administrators to manage reforms. For most of the Caribbean politicians, this goes too far. Read more “Dutch Caribbean Islands on the Brink”

What’s in France’s €100 Billion Stimulus

Emmanuel Macron
French president Emmanuel Macron answers a question from a reporter in Helsinki, Finland, August 30, 2018 (Office of the President of the Republic of Finland/Juhani Kandell)

France has unveiled a $100 billion stimulus program, worth 4 percent of GDP over two years, to help its economy recover from the effects of COVID-19.

The money is split almost equally between support for businesses, investments in the green economy, and health and social programs. It comes on top of the €460 billion France has spent on exemptions from social charges, furlough subsidies and soft loans to keep businesses afloat.

France is counting on the EU to provide 40 percent of the money from its €750 billion recovery fund. Read more “What’s in France’s €100 Billion Stimulus”

Dutch Extend COVID Aid for Businesses

The Hague Netherlands
Dutch government offices and parliament buildings in The Hague (iStock/Fotolupa)

The Dutch government has extended support for companies and self-employed workers struggling as a result of COVID-19 until July 2021, although some policies are becoming less generous.

The thinking, reports the national broadcaster NOS, is that firms shouldn’t be subsidized if they aren’t viable long term and workers in sectors with job losses should be coaxed into reskilling.

The measures will cost almost €39 billion this year. The Dutch economy is projected to shrink 6.4 percent. Read more “Dutch Extend COVID Aid for Businesses”

To Trump, Blue America Is Expandable

Chicago Illinois
Chicago, Illinois at night (Unsplash/Max Bender)

Asked about riots in America’s major cities, Kellyanne Conway, President Donald Trump’s outgoing political advisor, told Fox News:

These are Democratically-led cities and most with Democratic governors. It’s not Donald Trump’s watch.

(That didn’t stop Trump from deploying federal troops to Portland over the objections of the city’s Democratic mayor and Oregon’s Democratic governor in June.)

The suggestion that the president isn’t responsible for the whole country, but only to those parts that are loyal to him, is outrageous.

But it is how Trump has governed. Read more “To Trump, Blue America Is Expandable”

Britain Is Once Again the Sick Man of Europe

London England
The Shard in London, England at night (Unsplash/J.J. Jordan)

During the 1960s and 70s, Britain, economically stagnant and losing its empire, was known as the sick man of Europe. With COVID-19, the sickness has returned — and this time it may be even harder to heal.

More than 300,000 cases of coronavirus have been confirmed in the United Kingdom. 41,000 Britons have died of the disease, giving the country the second-highest per capita death rate among major countries. British economic output fell 20 percent in April, the worst rate by far among industrial nations.

This comes after a decade of austerity and on top of the economic fallout of Brexit.

It was the tough medicine of Thatcherism that allowed the United Kingdom to recover from its previous bout of ill health and find a new faith in itself — “Cool Britannia” — under New Labour.

But the seeds of the current malaise were planted in the same era. Read more “Britain Is Once Again the Sick Man of Europe”

Coronavirus and Corruption: Protests Against Netanyahu

Benjamin Netanyahu
Israeli prime minister Benjamin Netanyahu speaks with German chancellor Angela Merkel in Berlin, February 18, 2016 (Bundesregierung/Marvin Ibo Güngör)

Israeli prime minister Benjamin Netanyahu saw the largest protests against him in nearly a decade on Saturday, when some 10,000 rallied outside his residence in Jerusalem and outside his private home in the coastal town of Caesarea.

The protesters are upset about Netanyahu’s handling of the outbreak of coronavirus in Israel and his remaining in power despite standing trial for corruption.

Similar demonstrations took place in Tel Aviv last month. Read more “Coronavirus and Corruption: Protests Against Netanyahu”

New Social Contract for the World After COVID

Miami Florida
The skyline of Miami, Florida (Unsplash/Ryan Parker)

The American economy wasn’t healthy before COVID-19. A middle-class life — the American Dream — was out of reach for most.

Social-democratic Canada and Europe prevented more people from falling through the cracks, but even there millions felt economically and culturally left behind.

A sense that the system wasn’t working for them contributed to the election of Donald Trump, the popularity of far-right nationalist parties and Brexit.

The economic impact of the pandemic can only exacerbate the divide between the well-educated and relatively well-off, who populate the major cities of Europe and North America, and the undereducated and underemployed, who live paycheck-to-paycheck in smaller cities and towns.

We need a better deal. A new social contract. Read more “New Social Contract for the World After COVID”

Spanish Congress Approves Coronavirus Recovery Programs

Spanish parliament Madrid
The Palacio de las Cortes, seat of the Spanish Congress of Deputies, in Madrid, August 16, 2017 (Shutterstock/Vivvi Smak)

The Spanish Congress has approved three out of four recovery programs proposed by Prime Minister Pedro Sánchez, whose left-wing government does not have a majority.

Right-wing and regional parties supported plans for the economy, EU and health care. A package of social reforms, which included rental protections, a basic minimum wage and measures against gender violence, fell four votes short.

The government could reintroduce those proposals in its 2021 budget. Read more “Spanish Congress Approves Coronavirus Recovery Programs”