The coalition government consisting of the majority partner, the Partido Antiá Restrukturá (PAR), and two minority partners, the Partido MAN (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. Despite having been convicted of bribery charges and sentenced to three years in jail and a five-year ban from public office in 2016, the former prime minister, Gerrit Schotte (2010-12), of the Movementu Futuro Korsou (MFK), was allowed to run in the 2016 and 2017 elections. The party won 16% of the vote in 2016 and 19.9% of the vote in 2017, and gained a seat in the parliament. 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.

On top of political fragmentation, stability will suffer from rising immigrant inflows from Venezuela, which will burden strained government coffers and invite social tension. In April the Dutch government donated US$124,000 to set up detention centres and process Venezuelan refugee asylum requests. Moreover, the government will struggle in its effort to address weak growth and implement unpopular policies. Changes to public pension entitlements, the education and healthcare systems could, along with tax reform, 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.