CURACAO ISLAND GOVERNMENT FORMED

UNCLAS CURACAO 000456 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV NA SUBJECT: CURACAO ISLAND GOVERNMENT FORMED REF: (A) 06 CURACAO 00001080; (B) 06 CURACAO 1017; (C) CURACAO 65; (D) CURACAO 343 ¶1. On 21 May 2007, a coalition of three parties formally agreed to a new coaltion government for the Curacao island-level parliament. PAR and PNP, both parties that favor the constitutional accord offered by the Dutch to dissolve the Netherlands Antilles, have been joined by long-time rival FOL party to make a 11 of 21 member majority. The FOL party will also join the national GONA coalition led by PAR's PM Emily de Jongh-Elhage. ¶2. The new coalition takes power July 1 and is expected to take up and approve the stalled constitional accord, but attempt to renegotiate certain points with the Dutch later. The outcome of those discussions would then be put to a popular referendum to determine if Curacao will finally go along with the plan to dismantle the Netherlands Antilles. ¶3. Comment: The agreement for the FOL party to join the island and National governments synchronizes the coalition partners on both levels, which has historically led to smoother decision-making and better party discipline. Approval of the proposed referendum by the island's voters should provide the FOL party with the political cover it needs to change directions and sign off on the accord. FURNISH