WILLEMSTAD – The Dutch government has explicitly rejected the option of imposing financial sanctions on Curaçao and Sint Maarten for shortcomings in financial management, despite a recommendation from an external expert involved in the policy review of Kingdom financial supervision.
Professor emeritus C.A. de Kam had proposed introducing financial penalties if countries fail to improve financial management within an agreed timeframe. The cabinet, however, concluded that such sanctions would be counterproductive and politically damaging within the Kingdom structure.
According to the cabinet, financial sanctions would likely have a negative impact on already fragile public finances, as penalties would increase government expenditures rather than improve fiscal discipline. Additionally, enforcing sanctions through the Kingdom Council of Ministers would strain internal Kingdom relations.
For these reasons, the cabinet has decided not to adopt the recommendation, emphasizing that cooperation and dialogue remain the preferred approach to improving financial governance.