Island Councils Push Back: Is the Netherlands’ €30 Million Cost-of-Living Fund Being Redirected?

The Island Councils of Bonaire, St. Eustatius and Saba have warned the Dutch House of Representatives that a promised €30 million in structural funding may not deliver what it was intended to: measurable relief from the high cost of living in the Caribbean Netherlands.

A Promise at Risk

The €30 million was included in the coalition agreement to help reduce living expenses on the three islands, where prices remain considerably higher than in the European Netherlands.

The Island Councils are concerned, however, that from 2028 onward an estimated €19 million of the fund will be used for existing subsidies for electricity, drinking water, telecommunications, and transportation. Until now, the budgets of the responsible ministries have largely financed these.

Their argument is simple: maintaining existing subsidies prevents costs from rising but does not provide additional relief. Using the new €30 million to replace existing ministry spending would therefore shift costs between government budgets rather than make life more affordable.

The councils also fear the move could set a precedent, allowing other existing ministerial responsibilities to gradually transfer to the new fund.

The Electricity Gap

Electricity illustrates the problem. Households on Ameland pay roughly €0.26 per kilowatt-hour, while rates on the BES islands can reach about US$0.56 per kilowatt-hour.

Existing subsidies help prevent this difference from becoming even greater. But the councils argue that the additional €30 million was intended to narrow such gaps, rather than simply finance measures already needed to maintain the status quo.

Islands Want a Say

The councils also criticize the process. They say they have had little meaningful involvement in how the money will be spent in 2027, even as those plans are included in the national budget.

They argue that this conflicts with the principle of partnership: decisions directly affecting daily life on the islands should be developed with the islands, not decided in The Hague and explained afterward.

What the Councils Want

For 2027, they are asking Parliament to examine whether any of the €30 million is replacing expenditures that should remain the responsibility of individual ministries.

For 2028 and beyond, they want the full allocation reconsidered in genuine consultation with Bonaire, St. Eustatius and Saba, recognizing that each island faces different circumstances.

The Central Question

The dispute ultimately hinges on one question: Is the €30 million genuinely additional funding to reduce the cost of living, or is it becoming a new way to finance existing government obligations?

The Island Councils are asking Parliament to safeguard the original promise: use the money to make life more affordable and give the islands a meaningful role in deciding how that is achieved.

BES Island councils