European Parliament pushes for Eur 2.08 Billion OCT budget, increase could benefit the Caribbean parts of the Kingdom

THE HAGUE--The European Parliament wants to increase the budget for the Overseas Countries and Territories, OCTs, to EUR 2.08 billion for the period 2028 to 2034, a significant increase that could benefit the Caribbean parts of the Kingdom, including Aruba, Curaçao, St. Maarten, Bonaire, St. Eustatius and Saba.

The proposal is part of the European Parliament’s interim report on the European Union’s multiannual financial framework for 2028 to 2034. The amount represents a doubling of the EUR 999 million proposed by the European Commission for OCTs in the coming years.

To follow the process surrounding the new OCT Decision, the Dutch House of Representatives Committee for Kingdom Relations appointed Heera Dijk of D66 as rapporteur to examine the complex dossier. Dijk held discussions with several stakeholders in Brussels, including representatives of the European Commission, the European Parliament and the Permanent Representation of the Netherlands to the European Union.

Her first report was adopted by the committee this week. A separate debate on the Caribbean OCT dimension is expected later this year.

In anticipation of that debate, the committee has requested that State Secretary for Kingdom Relations Eric van der Burg provide an update on the negotiations surrounding the OCT Decision. The committee also asked him to inform the House of Representatives about any approaching Council agreement on parts of the OCT Decision that can be decided separately from the broader negotiations on the EU’s multiannual financial framework.

The committee further requested that the State Secretary explain how he intends to better organize cooperation within the Kingdom toward the EU, especially as Aruba, Curaçao, St. Maarten, Bonaire, St. Eustatius and Saba seek to strengthen access to EU support.

According to the report, the European Commission’s current proposal would nearly double the OCT budget to EUR 999 million. Of that amount, EUR 530 million would be reserved for Greenland, while EUR 425 million would be available for the Dutch and French OCTs combined. For the Dutch-linked OCTs, the current 2021 to 2027 period includes approximately EUR 80 million in total EU financing through territorial, regional and intra-regional programs.

The European Parliament’s proposed increase is based on the view that geopolitical developments, climate challenges and the economic vulnerability of many OCTs justify stronger EU support. The Parliament is also calling for more attention to democratic accountability, involvement of local communities and strengthening regional economies.

The interim report also supports easier access to EU funds for OCTs, along with capacity building and better access to horizontal EU programs such as Erasmus+ and Horizon Europe. It also calls for stronger integration of the OCTs into the EU’s Global Gateway strategy, including access to financing, guarantees and capital markets.

The OCTs connected to the Kingdom of the Netherlands are Aruba, Curaçao, St. Maarten, Bonaire, St. Eustatius and Saba. These territories are not part of the European Union, but have a special association with the EU through their constitutional links to the Netherlands.

The report also points to a major shift in how OCT funding may be organized in the next EU budget period. Unlike the current system, in which certain budgets are allocated in advance to specific territories, the new proposal would move toward more flexible funding based on criteria such as population size, economic development and absorptive capacity.

This shift could create both opportunities and challenges for smaller islands. The report notes that broader access to EU funding instruments may allow OCTs to participate in larger strategic projects related to energy, digital connectivity, infrastructure, biodiversity and climate adaptation.

However, the same approach may also make access more complex and less predictable, especially for smaller islands with limited administrative and technical capacity. The report warns that more flexible budgets and larger projects will require stronger project preparation, administrative capacity, knowledge of EU procedures and the ability to compete in a broader European context.

Examples of larger strategic projects mentioned in the report include undersea cable connections, wind energy projects and regional approaches to sargassum management. The European Commission views such projects as more effective when developed across several islands or within a wider regional framework.

The report also states that the Netherlands wants to strengthen support for the islands through better coordination, simplified application and reporting procedures, smaller project calls and reduced co-financing requirements for vulnerable areas.

The proposed OCT budget increase is not yet final. Negotiations on the EU’s 2028 to 2034 financial framework are expected to continue, with the final outcome dependent on agreement among EU member states. Only France, Denmark and the Netherlands have OCTs, and the report notes that several other member states have been critical of the proposed budget because they do not have a direct connection to these territories.

The broader EU budget negotiations are expected to continue into 2027. The final OCT allocation will depend on those negotiations, as well as on how the OCT Decision is ultimately shaped.

For the Caribbean parts of the Kingdom, the debate is significant. A higher OCT budget, if approved, could create greater access to EU financing for climate resilience, infrastructure, digital development, education, regional cooperation and economic diversification.

At the same time, the report makes clear that access to those funds will depend heavily on local and Kingdom-level capacity to develop, submit and execute strong projects.

The discussion now places the Caribbean parts of the Kingdom in an important position as Europe considers how much support it is willing to provide to territories facing climate risk, small-scale economies, limited capacity and growing geopolitical pressure.

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