The coalition government consisting of the majority partner, the Partido Antiá Restrukturá (PAR), and two minority partners, the Movementu Antia Nobo (MAN) and the Partido Inovashon Nashonal, took office in May 2017, with Eugene Rhuggenaath of the PAR becoming prime minister. The government has a very slim parliamentary majority, holding 12 seats in a 21-seat parliament. A fragmented political environment will provide little guarantee of stability, and although the coalition has a stronger mandate than its predecessor (which collapsed when a party holding just two seats withdrew), the government is at risk of instability should friction emerge between the PAR and MAN.

The government will find it difficult to avoid a continuation of the political volatility that has affected the island in recent years. The political establishment has been rocked by major corruption allegations in the past two years, most recently involving the now-suspended president of the Centrale Bank van Curaçao en Sint Maarten (CBCS, the Curaçao and Sint Maarten joint central bank), Emsley Tromp, who was replaced by two acting directors in November 2017. Early in 2016 a former prime minister, Gerrit Schotte (2010-12), of the opposition Movementu Futuro Korsou (MFK), was convicted on bribery charges and sentenced to three years in jail and a five-year ban from public office. Despite this, Mr Schotte was allowed to run in the 2016 election, and the MFK came close to winning, securing 16% of the vote and four seats in the Staten. The MFK did even better in the April 2017 elections, when it received 19.9% of the vote and gained another seat. Mr Schotte's trial will be held in August. It is unclear whether his conviction will be upheld but, in the meantime, he will be the strongest voice among the opposition.

Challenges facing the government include the need to address weak growth and implement unpopular policies, such as changes to public pension entitlements and the education and healthcare systems, along with tax reform; these could easily be derailed by special-interest groups. The business environ-ment will continue to be hampered by political and policy uncertainty, with further corruption scandals also possible.