Is Red Tape Strangling Progress? The SER Bottleneck Exposed.

PHILIPSBURG:--- In the halls of the Parliament of St. Maarten, frustration is mounting. The legislative machinery, designed to serve the people, appears to be grinding to a halt. During the recent Central Committee meeting on December 16, 2025, the discussion surrounding MP Omar E. C. Ottley’s draft law on admission and expulsion revealed a significant obstacle: the Social Economic Council (SER).
While the SER serves a vital function as an advisory body, the proceedings of this meeting suggest it has become a bottleneck rather than a facilitator of progress. The discussion exposed systemic failures—from crippling backlogs to circular arguments over data—that are delaying crucial legislation and eroding public trust.

The "Missing Data" Deadlock
One of the primary frustrations highlighted during the meeting was the SER's refusal to provide advice on the substance of the law, citing "missing information."
MP Rayheon Peterson pointed out that the SER places heavy emphasis on gathering data to prove a law's effectiveness before it offers counsel. While evidence-based policy is essential, Peterson noted that he wants "their actual advice on the law itself," which currently sits in limbo because the SER claims they cannot proceed without every variable defined.
This creates a bureaucratic catch-22. MP Sjamira Roseburg reinforced this, noting that the SER clearly stated they "cannot provide the advice at this moment" due to missing data. She questioned why this data wasn't available or whether answers provided during budget debates could have cleared the hurdle. The result is a stalemate: the SER won't advise without data, but the legislative process cannot move forward to generate that data without their advice.

The Backlog Excuse
Perhaps the most damning criticism came from MP Ottley, who noted the sheer volume of stalled legislation. He revealed that he currently has four pieces of legislation sitting with the SER, some for "over a year and months."
When pressed, the SER cites a backlog. However, for a nation facing urgent social and economic challenges, an administrative backlog is a weak justification for stalling the people's business. If the advisory body cannot keep pace with the legislature, it ceases to be an asset and becomes a liability.


Public Perception and "Red Tape"
The real-world consequence of these delays is a deteriorating relationship between the government and the electorate. MP Ottley spoke passionately about the public perception of Parliamentarians. He noted that the people of St. Maarten see MPs "collecting big fat salaries" while appearing to do nothing.
The public rarely sees bureaucratic hurdles or the "red tape" that kills momentum behind the scenes. They only see that laws promised in the news vanish into a void. When the SER holds onto legislation for over a year, they don't just delay a vote; they fuel the narrative that the government is ineffective or lying to the populace. 

A System in Need of Clarity
The meeting also touched on a fundamental lack of streamlined processes. There is ongoing confusion about which laws must go to the SER versus which should. The Chairlady acknowledged that discussions are currently underway to determine "what issues are social economic issues" and to streamline the process.
The fact that these basic definitions are still being debated in 2025 is concerning. Without clear guidelines, laws are sent to the SER unnecessarily, or they get stuck in a loop of jurisdictional ambiguity, further clogging the pipeline.

Moving Forward: Recommendations for Reform
To restore faith in the legislative process, the SER's role and operations must be re-evaluated.
1.  Define the Scope:  We need a strict, codified definition of which legislation requires SER advice to prevent the body from being overwhelmed with non-essential reviews.
2.  Impose Deadlines:  Advisory bodies should operate under strict timelines. If advice is not rendered within a set period (e.g., 6 weeks), Parliament should be empowered to proceed without it.
3. Provisional Advice: The SER should be mandated to provide advice on the legal framework of a draft ordinance, even if statistical data is incomplete. Advice should be constructive, not obstructive.
4.  Resource Allocation: If the backlog is genuine, the SER must either be given the resources to clear it or the mandate to prioritize urgent legislation.
The Central Committee meeting made one thing clear: the current dynamic is unsustainable. For St. Martin to move forward, the SER must evolve from a gatekeeper into a true partner in progress.


Police carried out Controls – Firearm Recovered and Multiple Arrests Made.

kpsmcontrols17122025PHILIPSBURG:--- The Police Force of Sint-Maarten (KPSM), in close cooperation with its other law-enforcement partners, continued its intensified controls and preventative actions aimed at ensuring public safety across the island.
On the evening of Tuesday, December 16th, 2025, at approximately 7:00 p.m., officers from a special police team were conducting preventive patrols along Suoaliga Road, in the area of the Melford Hazel Sports Park.
While conducting preventive searches in the area, officers observed a Kia parked near a group of men. At that moment, one individual was seated inside the vehicle while a second male attempted to walk away from it. Both individuals were immediately stopped and subjected to a lawful search.
During the inspection of the vehicle, officers discovered a black firearm lying under the seat. As a result of this finding, both individuals were immediately arrested.
One of the suspects told officers the vehicle belonged to a friend who was reportedly in the vicinity of a nearby gentlemen's club. Shortly thereafter, officers observed the driver, who, upon noticing the police presence, fled the scene on foot, heading toward the Sucker Garden Road area.
The area was cordoned off, and officers initiated an intensive search operation. After approximately 15 minutes, the suspect was located hiding in nearby bushes and was successfully apprehended and arrested without further incident.
All three suspects were transported to the police station, where they are currently being held for questioning. The firearm was confiscated as part of the ongoing investigation.
KPSM once again emphasizes that possession of illegal firearms or narcotics will not be tolerated. Individuals found in possession of such prohibited items will be arrested and prosecuted in accordance with the law.
The Police Force of Sint Maarten is sending a clear and firm message:
Controls, joint operations, and preventive searches will continue island-wide as part of ongoing efforts to safeguard public order and enhance the safety of all residents and visitors.

 

KPSM Press Release.

Amid ongoing global uncertainty Curaçao and Sint Maarten continue tourism-led growth.

WILLEMSTAD/PHILIPSBURG:---  Economic activity in the monetary union continued to expand in 2025, as reported in the December 2025 Economic Bulletin of the Centrale Bank van Curaçao en Sint Maarten (CBCS), supported by strong tourism performance, ongoing investment, and moderating inflationary pressures. Realized data up to the second quarter confirm that both stay-over and cruise tourism have been key drivers of growth across the union, even as the global environment remains characterized by geopolitical tensions, global policy uncertainty, tighter financial conditions, rising trade protectionism, and restrictive immigration measures.

Robust growth while inflation eased across the monetary union in 2025
Curaçao’s economy expanded by 3.5% in 2025, driven by stronger-than-anticipated tourism performance. Higher hotel occupancy rates and increased cruise and stay-over arrivals supported activity. Investment in real estate and infrastructure also remained solid. Growth was supported by both domestic and net foreign demand. However, domestic demand expanded more slowly than previously expected because public investment fell short of budgeted amounts. Net foreign demand strengthened as exports rose sharply on higher tourism earnings, though the larger import bill partly offset this gain. Inflation in Curaçao moderated to 2.4% in 2025, reflecting lower international commodity prices and easing domestic cost pressures. Fiscal performance remained stable with the current budget surplus unchanged from 2024 at 2.2% of GDP in 2025. Meanwhile, the public debt-to-GDP ratio declined from 65.5% in 2024 to 63.0% in 2025. This improvement reflected a stronger nominal GDP, despite an increase in the debt stock from additional borrowing by the Dutch state.

Sint Maarten also posted solid growth in 2025. Real GDP expanded by 3.1%, driven by stronger-than-expected stay-over and cruise tourism, following the completion of the airport’s reconstruction. As in Curaçao, both domestic and net foreign demand contributed to the expansion. Public investment supported growth by upgrading the road network, sewage systems, and prison facilities. Private demand also increased, supported by higher private investment and consumption. Inflation in Sint Maarten fell to 1.8% in 2025, primarily due to lower international oil prices. Net foreign demand also supported growth, as tourism-related export earnings increased faster than non-oil merchandise imports. Sint Maarten’s fiscal position improved as the current budget balance moved into a surplus of 1.1% of GDP. The public debt-to-GDP ratio declined from 42.1% in 2024 to 41.2% in 2025, driven by higher nominal GDP, though additional borrowing from the Dutch State partially offset the improvement.


Growth momentum to carry over to the medium term
Looking ahead, economic growth in both Curaçao and Sint Maarten is expected to slow gradually and move toward more sustainable medium-term rates. Real GDP growth is projected at 2.4% in 2026 in both countries. Growth is then expected to ease to around 2.0% by 2029 as tourism growth saturates and global demand slows, while post-reconstruction effects in Sint Maarten gradually fade. Inflation is also expected to moderate to 2.1% in Curaçao and remain close to 1.8% in Sint Maarten. By 2029, inflation is expected to converge to about 2.0% in Curaçao and 1.6% in Sint Maarten, broadly in line with developments in key trading partners. Fiscal positions are projected to strengthen over the forecast horizon. Current budget surpluses are expected to be maintained in both countries. Debt-to-GDP ratios are projected to decline, reaching 60.5% in Curaçao and 40.5% in Sint Maarten by 2029. This decline reflects nominal GDP growth that is expected to outpace the increase in public borrowing required to finance ongoing investment programs.

Regional tensions shape risk dynamics
The balance of risks to the outlook for Curaçao and Sint Maarten remains tilted to the downside, dominated by external factors. The most prominent risk arises from tensions between the United States and Venezuela. Further military escalation could increase shipping and insurance costs, disrupt trade routes, and undermine the Caribbean’s image as a safe travel destination, thereby hurting tourism and foreign exchange earnings. Curaçao, given its geographical proximity to Venezuela, is particularly exposed to a potential increase in migration flows, which could strain public services and fiscal resources.
Other geopolitical conflicts also weigh on the outlook. The war in Ukraine and tensions in the Middle East could once again disturb energy markets and global trade. While the Gaza peace plan has eased immediate pressure on oil and shipping, the ceasefire remains fragile. Renewed supply disruptions and higher freight costs could push up commodity prices, raising import prices and inflation in Curaçao and Sint Maarten.
Global trade remains vulnerable to policy uncertainty and protectionist measures. Despite the smaller-than-expected 2025 tariff shock, unresolved trade agreements and legal challenges in the United States could raise import costs and weaken foreign direct investment. A delayed easing of U.S. monetary policy could keep global financial conditions tight.
Domestically, climate-related shocks, delays in executing multi-annual public investment programs, unresolved AML/CFT deficiencies, and the growing fiscal pressures associated with health care and social insurance systems continue to pose challenges that could weigh on medium-term growth and stability in both countries.
The complete text of the December 2025 Economic Bulletin is available on the CBCS website.


Willemstad December 16, 2025
CENTRALE BANK VAN CURACAO EN SINT MAARTEN

To maintain stability in an unstable environment.

~Vulnerabilities and structural challenges must be addressed~


WILLEMSTAD/PHILIPSBURG:--- The monetary union experienced strong economic activity in 2025, driven by robust tourism performance. While economic growth in Curaçao and Sint Maarten is expected to continue over the forecasted horizon, both economies remain highly vulnerable to external shocks. As small, open and import-dependent island states, they remain sensitive to fluctuations in global demand and commodity prices, as well as to climate-related disruptions. These longstanding vulnerabilities are now amplified by rising geopolitical tensions between the United States and Venezuela in the region. “Maintaining stability in this environment requires decisive policy action to reinforce resilience and support a long-term sustainable growth path,” said Richard Doornbosch, President of the Centrale Bank van Curaçao and Sint Maarten, in the CBCS’s December 2025 Economic Bulletin.

Building resilience in the face of rising regional tensions
According to Doornbosch, an escalation of tensions between the United States and Venezuela could affect the monetary union through higher transport and insurance costs, weaker investor confidence, softer tourism demand, and, for Curaçao in particular, renewed migration pressures. While moderate escalation scenarios would likely have a temporary impact, Doornbosch warns that more severe shocks like targeted operations by the United States on Venezuelan territory could generate longer-lasting effects as tourism exports decline more sharply, external financing weakens, and official reserves fall. These findings underscore the need for continued vigilance in safeguarding reserve adequacy, monitoring external vulnerabilities, and maintaining investor confidence.

“To reinforce resilience, Curaçao and Sint Maarten must continue to strengthen their fiscal frameworks by building fiscal buffers and safeguarding debt sustainability, in line with international good practices for small developing states,” Doornbosch emphasized. Sound medium-term fiscal frameworks, anchored in realistic revenue projections, multi-year expenditure ceilings, and clear prioritization of resilient infrastructure, are essential to preserve space for countercyclical actions when shocks materialize. “One important way to strengthen public financial management is to incorporate macroeconomic projections into the preparation of government budgets, thereby improving the alignment between fiscal planning and expected economic conditions and supporting a more efficient and credible budget cycle. The CBCS stands ready to provide the necessary analytical support to the authorities in this process,” he explained.

At the same time, a key domestic priority is to improve execution of the multi-annual public investment programs in both countries, as persistent delays in public projects tend to postpone related private investments and weaken investor confidence. “Strengthening project preparation, procurement, and implementation capacity, including through greater use of digital tools and technical assistance from international partners, would help ensure that planned capital spending translates into visible improvements in connectivity, service delivery, and resilience,” recommended Doornbosch. Parallel reforms to secure the long-term sustainability of health care and social insurance systems have become increasingly urgent, as demographic pressures and rising medical costs could otherwise crowd out productive spending.

Beyond sustainable public finance, strengthening resilience requires a more diversified and regionally connected economy to reduce dependence on a narrow set of sectors and markets. For example, opportunities exist to deepen bilateral trade between Curaçao and Trinidad and Tobago through a partial scope trade agreement that draws on each country’s comparative strengths. “Leveraging this by lowering tariff and non-tariff barriers on complementary products or services, improving customs and standards cooperation, and supporting firms in meeting export requirements could broaden Curaçao’s export base, strengthen supply chains, and reduce vulnerability to shocks in more traditional markets,” he said.
Curaçao and Sint Maarten enter the new year with solid growth prospects, easing inflation, and more substantial external buffers, yet the outlook remains tempered by rising regional security risks, global trade uncertainty, and structural vulnerabilities. “Continued commitment to a focused policy agenda that addresses key vulnerabilities and structural challenges will be essential to reinforce resilience and support a path of sustainable and inclusive growth across the monetary union,” he concluded.
The complete text of the December 2025 Economic Bulletin is available on the CBCS website.


Willemstad December 16, 2025
CENTRALE BANK VAN CURACAO EN SINT MAARTEN

Savings Plan Introduced by the Minister of Finance Results in Cg. 477,600 Payout to Civil Servants in December 2025.

PHILIPSBURG:--- Minister of Finance Ms. Marinka J. Gumbs is pleased to announce that a total of Cg. 477,600 will be paid out to civil servants in December 2025 as a result of the successful first edition of the Government Savings Plan, introduced earlier this year.
The savings plan was officially launched in January 2025, following a direct exchange with civil servants during one of the Minister’s Finance Friday walk-in sessions. It was during one such session that the idea of a voluntary savings initiative for civil servants was raised, discussed, and ultimately developed into policy.
The Government Savings Plan allows participating civil servants to save a fixed monthly amount of Cg voluntarily. 50, Cg. 100, or Cg. 200, which corresponds to a net annual payout of Cg. 600, Cg. 1,200, or Cg. Two thousand four hundred paid out net at the end of the year. For the 2025 edition, 255 civil servants registered for the savings plan, demonstrating strong interest in financial planning and personal savings.
The total payout of Cg. 477,600 that will be paid out this December 2025 reflects the collective commitment of participating civil servants to building financial resilience, while also highlighting the Minister’s role in facilitating practical, people-centered initiatives.
The Minister of Finance welcomes the positive response to the program and emphasizes that this initiative forms part of a broader effort to promote financial awareness, discipline, and long-term stability among civil servants.
Registration for the 2026 Government Savings Plan is currently open until December 31, 2025, and civil servants are encouraged to take advantage of this opportunity to plan ahead and strengthen their personal finances. The Minister of Finance, Ms. Marinka Gumbs, extends her appreciation to all participants for their trust and engagement and looks forward to continuing the savings plan in the year ahead.


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