Opinion: René Zwart: "Aruba holds the final say on HOFA"

The proposed Kingdom Act on Sustainable Public Finances for Aruba (HOFA) has become one of the most debated political issues within the Kingdom of the Netherlands. In an opinion article published by Dossier Koninkrijksrelaties, Dutch journalist René Zwart argues that much of the public debate in Aruba has been driven by misinformation, misunderstandings and political rhetoric.

Zwart refers to State Secretary Eric van der Burg's recent press conference, during which he answered a question from NoticiaCla journalist Tito Laclé about the Council of State's advisory opinion on the HOFA bill. According to Van der Burg, the Council's recommendations do not alter the substance of the legislation but instead improve its wording.

According to Zwart, some local media incorrectly concluded that the entire bill would have to be rewritten, while political reactions further fueled confusion.

The article explains that HOFA originated in 2020, when Aruba required more than Afl. 900 million in Dutch financial assistance during the COVID-19 crisis. The Netherlands made stronger financial supervision through a Kingdom Act a condition for granting the loan after earlier supervision under Aruba's national legislation proved insufficient.

Zwart outlines how successive governments in both Aruba and the Netherlands negotiated the legislation, eventually replacing the original financial supervision law with the current hybrid model that combines a Kingdom Act and a parallel Aruban national ordinance.

He also points out what he considers a political contradiction: the same administration that twice signed agreements supporting the legislation is now leading the opposition against it. In his view, claims that HOFA eliminates Aruba's autonomy are not supported by the Council of State's opinion.

According to Zwart, the Council recognizes that certain limits on Aruba's financial autonomy can be justified given the island's recent fiscal history and previous agreements.

Looking ahead, he explains that once the recommended amendments have been incorporated, the bill will be debated in both the Dutch Parliament and Aruba's Parliament. Although Aruba cannot vote in the Dutch House of Representatives, it can participate through special delegates.

Most importantly, Zwart stresses that the Kingdom Act cannot take effect unless Aruba also adopts the accompanying national ordinance. Should Aruba's Parliament reject that legislation, HOFA would also fail.

For that reason, Zwart concludes that Aruba ultimately holds the decisive veto, giving the island an exceptional constitutional position within the Kingdom.