Aruba threatens legal action against Netherlands over budget

The former Dutch colony of Aruba is threatening legal action against the Netherlands if officials in The Hague refuse to accept the Caribbean island’s budget.

News agency Novum says the island’s prime minister Mike Eman, who has been on hunger strike since Friday over the issue, says the lack of approval means Aruba may be unable to pay its bills and salaries and benefits are also at risk.

‘Aruba is threatened with negative economic effects in the short term and direct consequences for many households,’ he is quoted as saying.

Debt

Aruba has a government debt of almost €1.5bn, which is some 75% of annual income. The Netherlands has ordered the island’s governor not to approve the finances pending further review.

Eman is expected to give more details about his plans later on Monday.

Aruba is part of the kingdom of the Netherlands’ but has been responsible for its own internal affairs since 1986. However, the Netherlands keeps an eye on its finances and remain responsible for defence and foreign policy.

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