PRESS STATEMENT
The Dominica Freedom Party (DFP) and the citizens of the Commonwealth of Dominica became aware through a statement issued by the Prime Minister of Antigua and Barbuda, Gaston Brown to his citizens that since June 2026, the European Union (EU) has communicated to the Organization of Eastern Caribbean States, (OECS) member states that have active Citizenship by Investment (CBI) programmes and has expressed serious concerns regarding these programmes.
It has been reported that the EU formally requested that the countries phase out the programmes. In the case of Antigua and Barbuda, the country was requested to phase out its programme by June 1st 2028.
The government of Dominica has not communicated with the citizens on that matter; however, Prime Minister Brown has indicated in his reporting that similar communication and requests from the EU have been made to the other countries that have CBI programmes, including Dominica.
These countries are warned that failure to phase out the CBI programme by 2028 is expected to result in the EU withdrawing visa-free access to EU member countries for citizens of OECS member states with the CBI programme. This EU decision would effectively mean the death of the CBI programme, as visa-free access to the EU is largely what currently fuels the CBI programmes in these OECS member countries.
This untenable development comes as no surprise to the Dominica Freedom Party, since the citizens may recall that in the lead-up to the 2019 general elections, the DFP warned extensively that Dominica would lose the CBI programme given the lack of proper due diligence and adherence to good ethical standards and concerns of a possible threat to the security of EU member countries.
It is only a government that is devoid of creativity, visionary leadership, and integrity that would lead a nation to become so dependent on its main source of revenue from the CBI programme (after being warned by many, including the IMF) that losing the CBI programme would result in a national fiscal collapse that would have dire consequences for the economy.
For fiscal year 2025/26, the government of Dominica budgeted that 56.7% of its recurrent revenue would be derived from the CBI programme. Non-CBI revenue was therefore projected at EC$ 456.2mn. Notably, non-CBI budgeted recurrent revenue was significantly lower (32%) than recurrent expenditure, which was budgeted at EC$ 679.9mn for fiscal year 2025/26.
This means that by 2028, when the CBI programme revenue flows to the government cease, this would have a consequential impact, resulting in a huge cut in recurrent expenditure, or a significant increase in debt, or a potentially sharp increase in taxes, or a combination of these measures. Any of these measures taken will trigger extreme hardship for the people of Dominica.
Recurrent expenditure, including spending on public officers’ salaries, NEP and Yes We Care wages, medical supplies and services at the hospitals and health centers, services and supplies to government departments, as well as road maintenance, is likely to be negatively impacted. Additionally, given the impending situation, civil servants can expect frequent delays in receiving their salaries, and there may even be some months when the government will undoubtedly face difficulty in paying salaries and wages to public officers. Moreover, road conditions are expected to deteriorate, and there could be unintended shortages of medical supplies and services at the hospitals and health centers, as well as at government departments.
Inevitably, the government will experience greater difficulty in paying its local suppliers and may struggle to pay its central government debts. CBI funding for the international airport and other capital projects will no longer be available by 2028, causing further damage to the country’s economic prospects and adding to the country’s woes. Adjustment to the impending crisis through a steep increase in taxes over the short timeframe of less than two years before the CBI programme effectively ceases would be just as damaging to the country’s economic prospects as cuts in recurrent expenditure.
The government will be forced to cut expenditure on several programmes, and programmes such as the National Employment Programme (NEP) and the Yes We Care can be expected to be cut. Additionally, should the government seek to cope by defaulting on its debt, this will certainly trigger a collapse in the country’s creditworthiness, resulting in difficulty borrowing for capital projects such as road rehabilitation and construction, among other government infrastructure.
All of these possibilities point to an impending collapse of the Dominican economy, or at the very least, they would usher in a period of extreme hardship for the people of Dominica. And the sad reality is that all of this could have been avoided with good governance, and if the ruling Dominica Labour Party (DLP) administration had listened to the warning and had taken the necessary measures advised by many, including the International Monetary Fund.
The way out of our current and impending worsening malaise is certainly not by entrusting the same government to take the country out of the mess in which it has placed the nation.
This ruling DLP administration is clearly incapable of good governance, and pilferage is perhaps its strongest trait.
The Dominica Freedom Party has embarked on a renewed effort to organize towards preparing the country to deal with the impending crisis and to bring good governance back to our land. Much will be shared with the public along these lines in the coming months. The Dominica Freedom Party has shared much information publicly in the past. Clearly, the way out is to start with a commitment to integrity, transparency, and good governance.
At this moment, the short-term pain that will be brought about by the loss of the CBI programme may not be avoidable short of selling the country out to foreign powers. But there can be mechanisms to cope, and the opportunity can be used to reset our country on a sustainable development path. This will require pulling all our skills and resources together, but this effort is best led by a government of integrity and capability to move our beloved country and people forward to a better way of life.