PM Mercelina’s Year One Report: Decent foundations, now the cost-of-living test
Prime Minister Dr. Luc Mercelina’s one-year overview reads like a government finding its footing, putting systems in place, restoring continuity, and mapping out reforms that, if executed well, can strengthen St. Maarten for the long haul. It is also the kind of overview that can leave the public with a familiar reaction: the list is long and much of it matters, yet another year has passed and many households still do not feel relief in daily life.
Nobody expects overnight solutions, and the government did spend the past year stabilizing itself while trying to keep essential services running. On paper, it also has roughly three more years in its mandate to deliver. What changes in 2026 is not the importance of long-term reforms, it is the public’s patience with improvements that remain mostly structural, procedural, or future-facing. Even ministers, in their own way, have acknowledged that 2026 must be a year where people start to see and feel improvement in quality of life. If there is one issue that can turn “steady progress” into public confidence, it is a visible start to cost-of-living relief, the biggest pressure point touching every citizen.
Mercelina’s overview, to its credit, does not pretend government is only one ministry at a time. It speaks broadly across governance, resilience, infrastructure, digital transformation, and public-sector reform, while also pointing to St. Maarten’s regional and Kingdom engagement. The political challenge is that broad overviews can feel abstract when residents measure performance in the basics: utility bills, grocery totals, rent, and whether tax policy helps or squeezes. Those are not small, they are daily realities, and they will shape how the public receives a second-year report far more than how many frameworks were drafted or committees installed.
Representation and diplomacy, necessary, but felt indirectly
On the external front, the Prime Minister points to strengthened representation within the Kingdom and internationally, including the appointment of Randolph Duggins as St. Maarten’s State Councilor to the Council of State. That is a meaningful institutional gain, because advisory and legislative channels inside the Kingdom can directly affect how policy is shaped and defended.
The UN General Assembly presence, meetings with leaders from Jamaica and St. Vincent and the Grenadines, and participation in a UNESCO event honoring victims of slavery, all reinforce a message that St. Maarten intends to be present where decisions are made and where small island vulnerabilities, climate resilience, sustainable economic development, and debt pressures are discussed. Mercelina’s line, “Sint Maarten’s voice must be present where decisions are made,” captures that ambition.
The difficulty is that diplomacy tends to pay off quietly and later, while cost-of-living pain is loud and immediate. The government will need to translate external engagement into tangible domestic benefit, especially in areas like climate financing, infrastructure funding, food security and debt-related fiscal room. What is the plan?
Regional cooperation and Kingdom processes
The overview highlights sustained dialogue with neighboring Caribbean governments, participation in the Trust Fund Steering Committee, and the finalization of the Treaty on Hot Pursuit to improve cross-border law enforcement coordination. It also notes the installation of key evaluation committees tied to the 70-year Charter process following Council of State advice, and alignment with EU development frameworks that enabled the unlocking and reprogramming of funds for sewerage and emergency shelter projects.
These are the kinds of actions that build capacity and credibility, particularly when St. Maarten must navigate both regional realities and Kingdom structures. For the public, though, the question becomes: how quickly do these arrangements improve safety, services, and living conditions, not just coordination?
Energy security
The strongest bridge between long-term statecraft and everyday life is energy. Mercelina centers “energy security and national resilience,” listing concrete steps to stabilize supply: leasing 10 megawatts of containerized generators, lease-to-own acquisition of 20 megawatts, and a USD 42 million loan to procure 30 megawatts of new generation capacity. He also notes a USD 1 million grant for technical assistance to NV GEBE and the start of work toward a structured and transparent framework for fuel tariff regulation. His statement, “Reliable energy is not a luxury, it is a foundation for economic stability, public safety, and quality of life,” is one of the few lines in the overview that speaks directly to how people experience government.
This is where 2026 expectations will sharpen. Supply stability matters, but households and businesses also need cost stability. If the government wants the public to “feel” progress, the conversation around GEBE cannot stop at megawatts and technical assistance. The public will be looking for movement on tariff transparency, predictable billing, and a credible pathway to lower costs where feasible. Energy is not only a utility issue, it is a cost-of-living multiplier that touches food prices, transport costs, rent, and business survival. Moreover, what is the plan for the incorporation of renewables? The government has been deafly silent on any plans.
Disaster readiness and resilience, a year of practical upgrades
The overview details significant disaster risk management steps: about USD 6 million secured for a new Emergency Operations Center, plus funding for tsunami preparedness, micro-insurance, Host Nation Support, and strengthening the Office of Disaster Management. It also points to completion of RESEMBID-funded disaster risk management projects, Starlink connectivity installed at critical facilities, national cell broadcast infrastructure implemented, and stronger coordination with the French side through harmonized disaster management protocols. The Fire Department received its first operational drone and risk insurance coverage for fire personnel was restored.
This cluster of measures is not flashy, but it is arguably among the most practical governance work listed. It improves preparedness, response capability, and continuity of communications in crises, exactly the kind of capacity residents demand after living through hurricanes and repeated disruptions. The public will still ask the same pragmatic question: are these systems tested, maintained, and staffed, not just launched?
Infrastructure, slow-moving projects with high public stakes
Mercelina cites continued progress on the hospital, a USD 25 million wastewater management project expanding and upgrading the sewer network and treatment plant, and the final phase of underground utility works by NV GEBE supported by Trust Fund financing. Infrastructure takes time, and the government is right to track it as a national priority, especially wastewater, which affects public health, tourism reputation, and environmental quality.
Here, too, 2026 will be about visible milestones: timelines the public can follow, disruptions explained in advance, and clear signs that the payoff is coming. A 10-year target of at least 1,200 new dwellings under the Housing Policy 2025–2035 as announced by the Minister of VROMI is the kind of measurable benchmark that gives the public something concrete to track, especially in a market where supply constraints keep prices and rents high. The real test will be delivery capacity. If the goal is spread evenly, it implies roughly 120 homes per year, a pace that is achievable on paper but only if projects are packaged to move.
Reactivating the Mortgage Guarantee Fund could be a meaningful complement to new construction, but only if the fund is structured to be credible to lenders and protected from political drift. For a mortgage guarantee fund to work, banks must trust that guarantees are legally enforceable, quickly payable when triggered, and backed by transparent governance, audited financials, and adequate capitalization or reinsurance.
Eligibility rules must be tight enough to limit risk and fraud, but flexible enough to serve real first-time buyers, with clear income bands, debt-to-income limits, property value caps, and requirements for financial counseling or pre-qualification. The fund’s reported history, guarantees issued with zero defaults, is a strong narrative anchor, but the modern housing market is different, and the relaunch will need updated risk modeling, a claims process that lenders can rely on, and public reporting that shows how many guarantees are issued.
On the issue of roads, another high season cannot come around at the end of 2026 as if it is a surprise. Planning to mitigate what residents and tourists are currently enduring should have already started and measures should be communicated by October 2026.
Digital government, important, but only if it simplifies life
Digital transformation is a central theme: government-wide alignment workshops, migration of the Civil Registry system to more resilient infrastructure to reduce downtime, online bank-to-bank payment processing for vehicle tax, and a centralized digital tracking system for incoming documents. It also includes establishment of a National Enterprise Architecture Framework, progress on digital identity architecture including a new national ID number, replacement of outdated ICT systems with modern cybersecurity infrastructure, fiber connectivity between key facilities, failover systems for continuity, and legislative drafting for cybersecurity, data protection, and privacy. The overview mentions three- and five-year ICT roadmaps to guide national transformation.
This is substantial, and it speaks to a government trying to modernize itself. The test in 2026 is whether residents feel government getting easier to use. If digitalization still requires in-person visits, repeated document submissions, and unclear turnaround times, then the public will see it as internal modernization rather than better service delivery. If it reduces waiting, improves reliability, and makes transactions simpler, it becomes a quality-of-life reform.
Civil service reform, a stronger state, and the politics of morale
The overview highlights a revised performance management cycle, amendments to the Remuneration Policy, salary indexation, increased vacation allowance, expanded jubilees, and more flexibility for internal career advancement. Function Books were completed for key departments including ICT and the Fire Department, with continued progress across ministries. The Employee Engagement Center was established, and the Government Training Center delivered onboarding, leadership, and professional development programs to hundreds of civil servants. Mercelina also engaged St. Maarten students in the Netherlands to encourage future participation in national development.
These are classic state-capacity investments. A motivated, well-trained civil service improves implementation, and implementation is the difference between policy announcements and lived outcomes. Still, a careful balance matters in 2026, because the public can be sensitive to internal government benefits when household budgets are strained. The government will need to show that a more professional civil service produces faster services, stronger compliance, and better value for money.
And, the Prime Minister clearly has a major problem on his hands with capacity in both the Personnel Affairs Department and Legal Affairs, both fall under his portfolios and both has crippled movement of policy and legislation as a result.
Social supports and citizen services, helpful steps, limited reach
Mercelina notes increased funeral expense allowances for civil servants, medical insurance coverage for VKS members, expanded Civil Registry outreach to residents with health or mobility challenges, and improvements to public information and customer support services. The Senior Citizen Fare program with WINAIR for residents 65 and older is also presented as a cost and connectivity measure.
These initiatives matter to the people they touch, and they signal an administration paying attention to service gaps. The larger challenge is scale. Cost-of-living pressure is widespread, and targeted programs, while important, will not substitute for broader relief on essentials.
Records, efficiency, and public assets
The resumption of the national digital scanning project, digitizing over 135,000 pages of records, is a quiet but crucial modernization step. Better records management reduces institutional risk, speeds decision-making, and prevents the “lost file” culture that frustrates citizens.
Cost-efficiency measures such as bulk procurement, rental contract reviews, utility rationalization, and improved fleet insurance arrangements are also listed. These are the kinds of internal disciplines that can free up resources, but they only translate into political capital when the savings are visible in outcomes: better services, reduced delays, or fiscal room for relief measures.
Facilities and equipment upgrades
The overview notes the opening of the Fixed Base Operator building at Princess Juliana International Airport, upgrades to Police and Fire Department vehicles and equipment, improvements to the Government Administration Building, targeted road rehabilitation, demolition of outdated public buildings to facilitate reconstruction, and funding secured for a new Mental Health Facility aligned with a long-term national vision.
Each of these speaks to a government addressing deferred maintenance and modernizing critical services. The mental health facility in particular responds to a long-discussed national need. The public, however, will judge safety sector upgrades by response times, visible policing quality, and whether roads and public spaces measurably improve. Infrastructure announcements become meaningful when they change what residents experience.
Development cooperation and communications
Mercelina cites the successful closure of the RESEMBID program, implementation of EU-funded initiatives in climate adaptation, agriculture, and education, and the development of a national Development Cooperation Strategy aligned with regional and international frameworks. He also points to modernized public communication and media capabilities: upgraded broadcasting infrastructure, backup power systems, press briefing facilities, and a project to digitize historical audiovisual archives.
This matters for institutional memory and for public transparency, but it also sets an expectation. Improved communications capacity should not only mean better production, it should mean better information, more regular data, clearer timelines, and more opportunities for the public to understand and question major initiatives.
The 2026 inflection point
Taken together, the Prime Minister’s overview describes a year of stabilization and systems-building, across nearly every major ministry area. Much of it is necessary work that past governments often postponed. The question now is sequencing and emphasis. In 2026, the same public that is patient with the government will expect real movement toward cost-of-living relief, because that is where frustration is most concentrated and most justified.
That relief does not require miracles. It requires a visible start, credible timelines, and clear priorities: progress at GEBE that moves from stabilizing supply to stabilizing cost, a serious push on food prices and the factors driving them, attention to real estate and rent pressures, and tax relief options that are targeted enough to help without undermining revenue stability. If government wants the public to “feel” progress, it must make space in its agenda for immediate household pressures, not as a side topic, but as the central test of whether a stabilized government can now deliver for daily life.
Mercelina’s overview ends with a promise of “steady, deliberate progress” toward a “resilient, inclusive, and well-governed” St. Maarten. The poignant truth is that resilience and good governance become real for most people when they can afford the basics without constant anxiety. The achievements listed provide building blocks, and the public will be looking to 2026 to see those blocks finally form something they can live in, not just read about.
And finally, there is the budget. This will determine what, if anything significant, gets done in 2026. The budget is for a different article.