What does the country look like politically on the Dutch side?
Until October 10, 2010, Sint-Maarten was part of the Federation of the Netherlands Antilles, an autonomous territory of the Kingdom of the Netherlands. On that date, the Federation of the Netherlands Antilles was dissolved, and Sint-Maarten became one of the four autonomous states making up the Kingdom of the Netherlands, alongside the Netherlands itself, Aruba and Curaçao. Sint-Maarten has an autonomous government and parliament elected by universal suffrage by the population of the Dutch part of the island. The Kingdom of the Netherlands is represented on the island by a governor, appointed by the Queen of the Netherlands.
As of October 2010, the Netherlands Antilles, part of the Kingdom of the Netherlands, has been dissolved. Sint-Maarten (like Curaçao) has acquired the status of an autonomous state, with the exception of defense, justice and finance, which remain the responsibility of the Dutch government. Foreign affairs powers were also transferred to Sint-Maarten at the end of 2011. In 2023, the seven-ministry government (Education; Culture, Youth and Sport; Finance; Health; Justice; Tourism, Economic Affairs, Transport and Telecommunications; Environment and Infrastructure; General Affairs) is headed by Prime Minister and leader of the New Alliance party, Silveria Jacobs (since January 2020, following early elections). Members of the government belong to separate parties: National Alliance, United People's Party, United St. Maarten Party, Party for Progress, United Democrats, St. Maarten Christian Party, People's Progressive Alliance.
On the French side, a rather recent community
In a referendum held on December 7, 2003, the voters of Saint-Martin and Saint-Barth called for their administrative separation from Guadeloupe. Their wish was granted on July 15, 2007, when the French part of Saint-Martin officially became an overseas collectivity, in the same way as Saint-Barthélemy, which made the same move at the same time. The status of overseas collectivity (COM) is governed by the laws of February 21, 2007 implementing the March 2003 revision of the Constitution in terms of decentralization. The creation of these two overseas collectivities is justified geographically, historically and administratively, given how different these two islands are from the Guadeloupe archipelago, to which they were attached for administrative reasons. The institutions of Saint-Martin and Saint-Barth are largely based on those of a département, and include the Conseil territorial and its president, the executive council and the economic, social and cultural council. They are thus entrusted with the competences generally attributed to communes, departments or regions. In addition, Saint-Martin and Saint-Barth were granted tax powers when they acquired COM status. Headquartered in Marigot, Saint-Martin has been represented in the Senate by a senator since September 2008, and in the National Assembly by a deputy since the 2012 legislative elections. Guillaume Arnell (Rassemblement Démocratique et Social Européen) was elected senator in September 2014, succeeding Louis-Constant Flemming who resigned on December 31, 2013. In 2020, school principal Annick Petrus will become the Senator for Saint-Martin. The deputy representing Saint-Martin and Saint-Barthélemy was Daniel Gibbs (UMP-related) from 2012 to 2017, then Claire Guion-Firmin (LR) until 2022 and currently Frantz Gumbs (LREM).
Economic duality between the two parts of the island?
In short, Saint-Martin became a COM (Collectivité d'Outre-Mer) in 2007, and since October 10, 2010, Sint-Maarten has been an "autonomous country" within the Kingdom of the Netherlands. Cooperation on the island has recently been stepped up. On October 12, 2010, France ratified the 2002 Franco-Dutch customs cooperation agreement. This body enables the two states and local authorities to negotiate on matters of common interest (social affairs, security, transport, health, education, etc.). A joint commission meets annually, in addition to a quarterly technical commission.
We can't ignore the competition from the Dutch side, which boasts high-quality infrastructures and a more attractive exchange rate and dollar, and Saint-Martin must now also boost its economic activity in this direction.
Inertia of the French Party in the face of the Dutch economic lightness
The business climate is perceived, particularly on the Dutch side, as being significantly different in the two parts of the island, and more favorable to investment on the Dutch side. Reasons cited are the euro/dollar ratio, which works to the disadvantage of the French side; cumbersome French bureaucracy; the need for Sint-Maarten-based companies to obtain a license to operate in Sint-Maarten; the minimum wage in Sint-Maarten is approximately double the minimum wage in Sint-Maarten, with stricter labor laws and immigration regulations on the French side; a 40-hour working week on Sint Maarten versus 35 hours on Sint Maarten; a particularly favorable tax regime on Sint Maarten (no property or capital gains tax; reduced transfer duties); the obligation to use French in dealings with the administration.
In addition, following the passage of Hurricane Irma, the French part of Maarten is reorganizing and rebuilding more slowly, as the applicable French laws (particularly with regard to construction) are more draconian. The aim is to improve quality and take into account potential measures in the event of a major disaster. For these reasons, Sint Maarten companies are rarely interested in operating in the French part, and, conversely, many French companies have established themselves in the Dutch part. A substantial proportion of spending by residents, businesses and tourists on Sint Maarten takes place in the Dutch part, which represents an important source of revenue for the Dutch economy. By the same token, the economic situation in the French part of the island necessarily has major repercussions in the Dutch part.
Another difference is the presence of higher education on the Dutch side. Sint Maarten has little post-baccalaureate education and no university, whereas Sint Maarten has a university campus with the School of Medicine and the University of Saint Martin(Source: European Territorial Cooperation Program Saint-Martin/Sin Maarten 2014-2020).
