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 “bear” their autonomy. Read more “Caribbean, European Netherlands Close In on Bailout Deal”

Spain Proposes Schengen Membership for Gibraltar

Gibraltar
Bay of Algeciras seen from the Rock of Gibraltar (Unsplash/Freja Saurbrey)

Politico reports that Spain has proposed to include Gibraltar in the EU’s passport-free Schengen Area to facilitate cross-border travel.

The arrangement would be similar to Liechtenstein’s, which is not in the EU but a member of Schengen. Andorra is negotiating a similar status. Monaco, San Marino and Vatican City are in neither the EU nor Schengen but maintain open borders.

The proposal is backed by Gibraltar’s chief minister, Fabian Picardo.

96 percent of his citizens voted to remain in the EU in the 2016 referendum, but they were overruled by majorities in England and Wales.

Although Britain formally left the EU at the end of 2019, the bloc’s rules and regulations still apply until the end of 2020.

Gibraltar, like Britain, was never in the Schengen Area, but it was in the EU single market, allowing it to trade freely with the EU’s 27 other member states. Before the pandemic, commuters were typically waved through by Spanish border police. Read more “Spain Proposes Schengen Membership for Gibraltar”

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”

Politicians Break Deadlock on Curaçao

Willemstad Curaçao
Aerial view of Willemstad, Curaçao (iStock/Texpan)

Weeks of political deadlock on Curaçao have been broken with the swearing-in of Shaheen Elhage as lawmaker. He succeeds William Millerson, who died in June.

Millerson’s death had reduced the government to ten out of 21 seats in the island’s legislature. Opposition parties refused to attend Elhage’s inauguration, denying the ruling parties a quorum. They are unhappy with cuts and reforms the government is enacting to qualify for financial support from the Netherlands.

One opposition lawmaker, Marilyn Moses, did attend parliament on Monday.

The other nine, seven of whom want independence from the Netherlands, still didn’t show. Read more “Politicians Break Deadlock on Curaçao”

Contrast in the Dutch Caribbean

Oranjestad Aruba
Facade of the Royal Plaza Mall in Oranjestad, Aruba, February 10, 2015 (Thomas Hawk)

The government of the Aruba, a Dutch island in the Caribbean, has presented a five-point plan to restructure its tourism-dependent economy, which has been decimated by COVID-19.

Meanwhile on neighboring Curaçao, pro-independence parties are boycotting the inauguration of a pro-government lawmaker, bringing politics on the island to a standstill.

The two islands, and Sint Maarten, are autonomous countries within the Kingdom of the Netherlands and have yet to approve Dutch terms for financial support to cope with the effects of coronavirus. Read more “Contrast in the Dutch Caribbean”

Democrats Should Give Caribbean and Pacific Islands Statehood

San Juan Puerto Rico
San Juan, the capital of Puerto Rico (Unsplash/Wei Zeng)

Donald Trump is disliked by so many Americans that Democrats could win not just the presidency but the Senate in November.

Longer term, however, Republicans have baked-in advantages that make Democratic control of the upper chamber elusive.

The solution: turn America’s overseas dependencies into states. That would give 3.5 million Americans the federal representation they deserve and add ten more seats to the Senate, most of which would lean Democratic. Read more “Democrats Should Give Caribbean and Pacific Islands Statehood”

Dutch Caribbean Resist Terms of Coronavirus Aid

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)

The prime ministers of Aruba, Curaçao and Sint Maarten have turned down conditions to qualify for as much as €1 billion in coronavirus aid from the European Netherlands. A cabinet meeting in The Hague on Friday, which the leaders of the three islands attended, failed to produce a compromise.

The Dutch have proposed appointing a three-person panel to oversee reforms to which the aid is tied. The Caribbean islands consider this an infringement of their autonomy.

Eugene Rhuggenaath, the prime minister of Curaçao, went so far as to accuse The Hague of having “an agenda for the takeover and control” of the islands, echoing the rhetoric of pro-independence parties that supported violent protests against spending cuts two weeks ago, which prompted the Dutch to deploy troops to support the local police. Read more “Dutch Caribbean Resist Terms of Coronavirus Aid”

Dutch Deploy Troops After Riots on Curaçao

Dutch frigate Zeeland
Dutch frigate HNLMS Zeeland on patrol in the Caribbean Sea (Ministerie van Defensie)

The Netherlands is deploying troops on Curaçao, one of the kingdom’s islands in the Caribbean, following several days of rioting and unrest.

The decision was taken with local police, who announced that, as a result of the deployment, a two-day curfew could be lifted on Friday. Read more “Dutch Deploy Troops After Riots on Curaçao”

Dutch Terms for Caribbean Support Are Fair

Willemstad Curaçao
View down the Breedestraat in Willemstad, Curaçao (Unsplash/Lakeisha Bennett)

Politicians in the Dutch Caribbean have reluctantly agreed to spending reductions and reforms to qualify for €370 million in financial support from the European Netherlands:

  • 25-percent cut in the salaries of politicians.
  • 12.5-percent cut in the salaries of other public-sector workers.
  • Capping public-sector wages at 130 percent of the prime minister’s salary. (Such an income limit already exists in the European Netherlands.)
  • 20-percent contribution from firms to wage subsidies for the unemployed.
  • Oversight from the Dutch Central Bank in the financial industry of the islands.

With their tourism-dependent economies in free fall due to the outbreak of coronavirus disease, the leaders of Aruba, Curaçao and Sint Maarten felt they had no choice but to agree to what Prime Minister Eugene Rhuggenaath of Curaçao called “unrealistic demands” and John Leerdam, a former Labor Party politician, who was born on Curaçao, called a “diktat” from The Hague.

But the terms (which do not apply to emergency food and health-care aid) still fall short of the more thorough and long-term reforms Dutch governments, of the left and right, have advised for years, in some cases decades:

Why Spain’s Threat to Hold Up Brexit Over Gibraltar Is Theater

Spanish foreign minister Josep Borrell attends a meeting in Brussels, July 17
Spanish foreign minister Josep Borrell attends a meeting in Brussels, July 17 (European Council)

Spain has demanded greater clarity on the status of Gibraltar before signing off on the treaty that is meant to regulate Britain’s exit from the EU in March 2019.

“We want the interpretation to be clear in that text that the negotiations between the United Kingdom and the EU will not apply to Gibraltar,” Josep Borrell, the Spanish foreign minister, said on Monday.

Here is why his demand is a bit of a dud. Read more “Why Spain’s Threat to Hold Up Brexit Over Gibraltar Is Theater”