In the current political debate, PPA parliamentarian Eduard Pieters has raised an essential question: how is the government treating the majority of the Aruban population? While the government repeatedly selects one group of pensioners to benefit from cost-of-living relief—something the PPA welcomes for those beneficiaries—approximately 25,000 people who earn around the minimum wage or fall within the “subsistence minimum,” and who form part of the middle class, are being left behind. The result is clear: increasing pressure on the middle class and a real risk that more people will fall into poverty.
Minimum wage, subsistence minimum, and economic reality
“We know the figures for the subsistence minimum, and we know that even though the minimum wage has been increased, it still does not reach a level that allows a person to live with dignity in Aruba. However, simply continuing to raise the minimum wage is not a sustainable solution either. Every wage increase is almost automatically followed by price increases, because businesses have to cover higher costs. As a result, purchasing power does not improve; the problem is merely shifted from one place to another,” Eduard Pieters stated.
According to the PPA, the approach must be different. The government must reduce its expenditures. Aruba has sufficient fiscal space to do so, and only through a serious reduction in public spending can the government create real economic and fiscal relief for the population. This would directly translate into greater purchasing power for people, without triggering a spiral of price increases.
Pensioners, AZV, and political honesty
With regard to pensioners, PPA parliamentarian Eduard Pieters raised another strong point:
“AZV is not an institution that is losing money. On the contrary, AZV has a surplus of millions of florins. If that is the case, why can no exception be made for pensioners who are currently excluded from the relief measures? Why can the purchasing power of all pensioners not be improved?”
The government must be honest and clearly explain what has been evaluated and why not all pensioners benefit. According to Pieters, it is important to remember what politicians campaigned on:
“Especially considering that during the campaign, the AVP promised increases for all pensioners, not just a small group. Political promises must be honored, not reinterpreted after elections.”
Governance without vision and consequences for the future
The PPA warns that Aruba is being governed without a concrete financial plan or vision. The government continues to borrow money to maintain a certain level of spending, even while the economy is performing well and generating surpluses. Eduard stated:
“The key question is: who is this surplus serving? A specific group, or the common good, as they hypocritically claim? We see the fiscal relief measures the government has presented, but there are also serious questions—especially when fiscal relief applies to people who are not residents of Aruba, while those who live and work here do not feel any real benefit.”
‘Closing down’ certain departments
The PPA indicated that since the campaign, it has identified several government departments that have become obsolete and need to be reorganized, possibly privatized, with a clear focus on their core business. In addition, the current BBO tax system continues to place pressure on consumers.
“A VAT system, if properly prepared and implemented with sound management, could be fairer and would not be cumulative like the current BBO, where every small increase in costs results in a large increase for the consumer at the end.”
Finally, the PPA is convinced that if the government does not act with responsibility and vision, Aruba runs the risk of facing serious financial challenges in the near future. Social and economic policy must be inclusive, fair, and sustainable. Selective relief and uncontrolled spending are not solutions. The PPA advocates a different path: a government that reduces its expenditures, strengthens purchasing power, and works for the well-being of the entire population of Aruba—not just a select group.