Economic growth of
Antilles remains low
PHILIPSBURG/St. Maarten--The Economist Intelligence Unit (EIU), provider of country, industry and management analysis on more than 200 countries and eight key industries expects economic growth for the Netherlands Antilles in 2007-2008 to remain low, at 1.5 to 2.5 per cent. This is stated in the country report Netherlands Antilles published in March giving an outlook for 2007-2008.
When the split of the Netherlands Antilles goes ahead, the Dutch offer to assume all the public debt of the islands will provide a boost to the economies of all the islands from 2009.
The deadline for establishing the new constitutional status of the islands that comprise the Netherlands Antilles has been put back from July 2007 to December 15, 2008. Four of the islands have signed an agreement with the Dutch government that will see St Maarten reduce its ties with Holland by becoming an autonomous state within the Kingdom of the Netherlands.
The three smaller islands Bonaire, St Eustatius and Saba will strengthen their links with the Dutch, through gaining a new status which is equivalent to that of Dutch municipalities. The largest of the five islands, Curaçao, is demanding the renegotiation of the November 2, 2006, final accord, which established the broad manner in which the Netherlands Antilles would be broken up.
The accord envisages Curaçao, as with St Maarten, becoming fully self-governing, except in matters of defence, foreign policy and law enforcement, which would continue to be the responsibility of the Dutch government. Curaçao is seeking greater fiscal autonomy than currently envisaged.
It is unclear how the situation will be resolved, but any resolution is unlikely before Island Council elections on April 20.
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