We do not expect a radical policy shift under the current government. Under the auspices of the Netherlands Financial Supervision Board for Curaçao and Sint Maarten, the island has made some important structural changes in recent years that should see its fiscal position improve in the long term. These include an increase in the retirement age from 60 to 65, an additional sales tax of 9% on luxury goods, a more progressive property tax and a reduction in the number of public servants (in order to ease the public-sector wage bill). Additional reform efforts have been focused on healthcare, such as the implementation of a basic medical insurance scheme and a preference for generic drugs in order to reduce the medicine bill. These measures, combined with a spending freeze, have helped the island to reverse deficits accumulated during the Schotte administration's term. Never-theless, slower progress has been made on implementing other policy recom-mendations, including some supported by the IMF, such as a move to introduce value-added tax (VAT), as well as bringing greater flexibility to the labour market. Long-term policy will be guided by the island's 2015-30 National Development Plan, which seeks to boost competitiveness, improve infra-structure and diversify the economy further.

The opening up of state utilities to competition and private-sector investment will advance only slowly, and the government will need to address the underperformance of state-owned companies. A policy of encouraging alterna-tive, sustainable electricity generation and energy conservation in order to reduce dependence on imported fuel is making progress. The island will remain an attractive tourism destination; we expect progress in attracting visitors from the US and Europe, following the decline in Venezuelan demand due to that country's ongoing financial crisis. Curaçao has a more diversified economy than the rest of the Dutch-speaking Caribbean, which means that it is less vulnerable to slumps in tourism or other individual sectors. Ongoing infrastructure improvements should also help to boost growth and employment.