WILLEMSTAD – Alongside new EU funding opportunities for the Dutch Caribbean, the proposed revision of the EU’s OCT framework introduces new financial risks that could have long-term implications for Curaçao and the Kingdom as a whole.
Dutch lawmakers have voiced growing concern over a proposed EU loan facility for Overseas Countries and Territories, warning that unclear conditions could expose Curaçao and other islands to additional debt risks without sufficient safeguards.
While grants remain part of the framework, the loan facility would allow OCTs to finance large-scale projects through borrowing. Members of the Dutch Parliament questioned how such loans would interact with existing financial supervision regimes for Curaçao, Aruba, and Sint Maarten, and whether the Netherlands could ultimately be held financially or politically accountable if repayment problems arise.
Particular concern was expressed about predictability. The new framework would move away from fixed multiannual envelopes toward more flexible funding mechanisms. While flexibility may benefit the EU, lawmakers warned that this could undermine budget certainty for Curaçao, complicating long-term planning and increasing reliance on national or Kingdom-level funding as a backstop.
Questions were also raised about governance and oversight. Parliamentarians stressed that EU funding should be additional to existing Kingdom investments, not a substitute. Without clear coordination, there is a risk that EU money could displace national funds rather than strengthen overall development capacity.
Curaçao’s relatively small administrative apparatus was again highlighted as a vulnerability. Without sustained technical assistance, the island may struggle to design, apply for, and manage EU-funded projects—particularly under stricter accountability and reporting standards.
Dutch lawmakers have urged the government to play a more active role in supporting the Caribbean parts of the Kingdom, not only during negotiations in Brussels but also during implementation. For Curaçao, the debate underscores a broader challenge: how to leverage international funding opportunities without undermining fiscal stability or autonomy.