The Netherlands Antilles and the Netherlands itself have signed an agreement that completes constitutional reform between the two countries, resulting in a restructuring of constitutional ties between coloniser and former colonies.

Among the group of five islands in the Caribbean that are ex-colonies of the Netherlands, Curacao and St Maarten will become countries separate from the Netherlands, while Bonaire, Saba and St Eustatius will become special Dutch municipalities.

The agreement, which derived from a constitutional crisis in 2004 caused by "irreconcileable differences between the constituent islands” will take effect from 10 October 2010, when the Netherlands Antilles will be dissolved as a single political entity.

The Dutch prime minister Jan Peter Balkenende said the agreement marked a special moment in the political history of the country. 

The move could prove significant for the wealth management industry if the split is used as an opportunity for the islands to increasingly develop their individual merits as international financial centres, on issues such as tax rates, for example.