Netherlands Antillean Islands Discuss New Constitutional And Financial Arrangements

by Amanda Banks, Tax-News.com, London

28 January 2005

Following the conclusion of a two-day inter-island constitutional summit on Tuesday, the four islands of Bonaire, Saba, St. Eustatius and St. Maarten have agreed to create five working groups to help formulate new constitutional relations with the Netherlands.

According to the St Maarten Daily Herald, the five groups will be established in the areas of Administrative and Judicial Relations, Organisation, Finances, Charter and Communication.

All four island territories, as well as the Central Government, Aruba and the Netherlands are expected to be represented in the Charter Work Group.

The islands also discussed a number of financial issues, such as the “intolerable” level of national debt which all sides have committed to resolve.

In addition, the parties agreed on a need for financial checks and balances within the Kingdom, and discussed the possibility of a monetary union with a joint central bank and single currency.

All islands agreed to the broad principles that the new constitutional entities would remain within the Kingdom and that there was no longer a need for the existence of the Netherlands Antilles as a country.

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