Agreement for Draft Consensus Kingdom Law to Parliaments

Dutch Kingdom – Aruba, Curaçao, Sint Maarten and the Netherlands have reached an
agreement on the submission of the proposal of the Kingdom Act Caribbean Body for Reform
and Development (COHO). The Kingdom Act forms the foundation for a new form of multi-
year cooperation between the countries in the Kingdom.
The economies of Aruba, Curaçao and Sint Maarten have been severely affected by the COVID-19
pandemic. The Netherlands offered help in the fight against COVID-19 and supported the countries
with food packages. In addition, EUR 1 billion in emergency liquidity loans was provided to support
public finances in the event of a sudden cessation of economic activity.
As a condition for granting the liquidity loans, it has been agreed that the countries will accelerate
reforms that will strengthen them. The countries are adhering to this agreement. The aim is to enable
the economy and society to better absorb a crisis in the future, so that governments are able to offer
new opportunities to residents and businesses. To support the countries in this, it has been agreed that
an independent Caribbean Body for Reform and Development will be established.
In anticipation of the formal establishment of COHO, a country package has each been agreed with
Aruba, Curaçao and Sint Maarten. The measures from the country packages are further elaborated
per country in successive implementation agendas. In this way, every Caribbean country is able to
take steps in a way that suits them. COHO will provide support and monitor the implementation of
the topics described in the packages. These tasks are currently performed by the Temporary Work
Organization (TWO).
The four countries reached a final agreement this week on the elaboration of the Kingdom Act.
Changes compared to previous consultations include clearer agreements with the countries about the
incorporation of the country packages in the various budgets. It has also been agreed that the
objections that exist about the powers of the financial supervisors C(A)ft will be further elaborated in
the implementation phase.
Agreements to address the possible implications of the execution of the cooperation protocol
between the C(A)ft and COHO, including the mutual tasks, roles and responsibilities, have also been
established. COHO and the C(A)ft will consult with the governments of the countries about the
cooperation protocol before it can be established or amended.
Aruba, Curaçao and Sint Maarten have drawn attention to a number of concerns regarding the
enforceability of the law within the constitutional legal order. These points include guaranteeing
policy space and autonomy of governments, the convergence between C(A)ft and COHO and the

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space for investment to be able to implement the reforms and accompanying policies. The
Netherlands has promised to discuss this and make agreements.
The proposed Kingdom law will now go to the Parliaments of the countries and the Second Chamber
of the Netherlands. Later in the process, the First Chamber will also have the opportunity to
deliberate on the Kingdom law.