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Netherlands

 Flag of Netherlands

Last updated: January 2009

Country information

Map of Netherlands

Area: 41,526 sq km (Total: 41,526 sq km)
Land: 33,883 sq km; Water: 7,643 sq km)
Population: 16.5 million (January 2009)
Capital City: Amsterdam (population: 735,000) The Hague is seat of the Court, Government, and Parliament.
People:
0-14 years: 17.89% (M 1,501,602; F 1,434,122)
15-64 years: 67.39% (M 5,517,512; F 5,483,337)
64> years: 14.72% (M 1,038,959; F 1,375,867)
Language: Dutch
Religions: Roman Catholic 28%, Protestant 19%, Muslim 5.8%, other 4.2%, Unaffiliated 43%.
Currency: Euro
Major political parties: CDA (Christian Democrats), PvdA (Labour Party), VVD (Liberal Conservative Party), SP (Socialist Party), D66 (Liberal Party), Groen Links ( Ecologist and Socialist Party), CU (Christian Union), PVV (Party for Freedom).
Government: Constitutional monarchy
Head of State: Queen Beatrix, since 1980
Prime Minister: Jan-Peter Balkenende
Foreign Minister: Maxime Verhagen
Membership of international groups/organisations: Benelux, World Customs Organisation (WCO), Euro-Atlantic Partnership Council (EAPC), European Union (EU), Food and Agriculture Organisation of the United Nations (FAO), North Atlantic Treaty Organisation (NATO), United Nations (UN), United Nations High Commission for Refugees (UNCHR).

DID YOU KNOW?

  • The 'Orange' of the House of Orange originates from the small town in the South of France. William The Silent, son of the Prince of Nassau (in Germany), inherited the title to the House of Orange through family connections. The Royal Household is still today the House of Orange-Nassau.
  • Orange is the Dutch national colour. But the Dutch flag is red, white and blue.
  • The Dutch bulb trade, established in the 17th century, was probably the world's first forward commodities market. In 1636, a single tulip bulb was sold for 5,400 guilders, more than a substantial Amsterdam house cost at the time. Tulip bulbs were originally brought to the Netherlands from Turkey.
  • The export of fresh flowers is still a major Dutch industry. As of 1 January 2002, the Dutch cooperative combining two flower auction houses, FloraHolland, has become one of the world's largest auction organisations. Its annual sales in 2006 were EUR 3,9 billion. 85% of these sales were exported, mainly to other EU member states.
  • 25% of the country lies below sea-level. But without the existing dykes and dunes, 65% of the country would be flooded daily.
  • In 1664, the Dutch swapped New York for Suriname, which was valued for its spice production.
  • The ‘Elfstedentocht’, or Eleven Cities Race, is a 200 km endurance ice-skating event in Friesland, held only in years when the weather is cold enough to freeze all the canals and dykes. It was last held in 1997. The more than 16,000 participants skate through the night, many taking more than 12 hours to complete the event. The Dutch have a special verb, ‘klunen’, meaning ‘walking over ground wearing skates’ in order to circumvent weak patches in the ice or low bridges. 

ECONOMY

Basic Economic Facts

GDP per head: €33,031 (2006)
Annual Growth: 2.25% (2008), - 0.75% (forecast 2009), 1.0% (forecast 2010)
Inflation: 2.5% (2008)
Unemployment: 3.7% (3rd Quarter 2008)
Major Industries: Agro-industries, electrical machinery and equipment, metal and engineering products, chemicals, petroleum, construction, microelectronics, fishing
Major trading partners: EU countries (75%), especially Germany, Belgium, France and the UK

UK Trade & Investment Country Profile: The Netherlands

The Netherlands has a solid and open economy that depends heavily on foreign trade. However, over the recent months it has become clear that the Dutch economy is not immune from the global economic crisis. The latest forecasts suggest that the economy will contract by approximately -0.75 percent in 2009 with recovery only likely to take place during 2010. Despite the current difficulties, the Netherlands enjoys relatively stable industrial relations, low inflation and a current account surplus. It has a significant role as a European transportation hub centred around Rotterdam Port and Amsterdam Schiphol Airport. Industrial activity is mainly in food processing, chemicals, the refining of petroleum, and electrical machinery. The services sector represents 70% of the economy. The agricultural sector is highly mechanised and employs no more than 4% of the labour force but it provides large surpluses for exports and the food processing industry. When it comes to the value of agricultural exports, the Dutch rank third worldwide. The Netherlands was among the first 11 EU countries to adopt the Euro currency on 1 January 1999.

HISTORY

Recent History

During the First World War (1914-18), the Netherlands remained neutral. It continued to pursue a policy of strict neutrality until the Second World War, but was invaded by Germany in May 1940 and occupied for five years. Queen Wilhelmina spent the war years in England, playing a vital role as the symbol of resistance against the occupying forces. She abdicated in 1948, after a reign of 50 years, in favour of her daughter Juliana. Queen Juliana abdicated in turn on 30 April 1980 to be succeeded by her eldest daughter, the present Queen Beatrix.

The Netherlands was a major colonial power until the Second World War, but after 1945 its two largest colonies, Indonesia and Suriname, gained independence. Today, the Dutch Antilles and Aruba still form part of the Kingdom of the Netherlands.

Longer Historical Perspective

Until the early 5th century, the area south of the Rhine was part of the Roman Empire. Throughout the Middle Ages, the Netherlands consisted of many separate feudal entities, which were eventually united, under Emperor Charles V (1500-1558), with the rest of the 'Low Countries' (present-day Belgium and Luxembourg) as part of the Holy Roman Empire.

But Charles V’s son, King Philip II of Spain, caused widespread resentment by restricting religious freedom and aspiring to absolute power. So in 1568, some of the northern Dutch provinces revolted under Prince William of Orange, starting what the Dutch call the Eighty Years’ War. This ended in 1648 with the Treaty of Münster, which recognised the Republic of the United Provinces (the seven sovereign provinces of Holland, Zeeland, Utrecht, Friesland, Groningen, Overijssel and Gelderland) as an independent state.

During the 17th century, the Netherlands' 'Golden Age', the Republic became very prosperous thanks largely to the Dutch East Indies Company, which could be described as the world’s first multinational. This company had interests along the coasts of Africa and Asia, with bases in present-day Indonesia, Japan, Taiwan, Sri Lanka and South Africa. Around the same time, the Dutch West Indies Company (WIC) was trading with West Africa and the Americas, and from 1625 to 1664 it administered New Amsterdam, which later became New York.

Conflicting trading interests led to several wars with England, but the ties with that country were close. The Stadtholders, William II and his son William III both married English princesses, and in 1689, William III was asked by the English Parliament to share the English crown with his wife, Mary II.

The French Revolution signalled the end of the Republic of the United Provinces, which was invaded and occupied by French revolutionary forces in 1795. In 1813, the French Empire collapsed and the Low Countries regained their independence. In the northern Netherlands, there was a power struggle between republicans and monarchists, which was won by the latter. Willem Frederik, Prince of Orange-Nassau, returned from exile in England. The Government moved to The Hague, although Amsterdam remained the official capital. In 1815, the northern and southern Netherlands - today’s Netherlands and Belgium - were combined to form the Kingdom of the Netherlands, with Willem Frederik as King William I. This marked the introduction of the Dutch hereditary monarchy.

The constitution was radically revised in 1848, making ministers accountable to an elected Parliament rather than the monarch. The new constitution was the basis for a constitutional monarchy with a parliamentary system. In 1830, the southern Netherlands seceded from the Kingdom to form the independent state of Belgium.

BBC Timeline of the Netherlands

INTERNATIONAL RELATIONS

The Netherlands' Relations with Neighbours

The Netherlands places great importance on maintaining good relations with its neighbouring countries: its Benelux partners (Belgium and Luxembourg), Germany, France, the United Kingdom and the Scandinavian countries. The Netherlands is closely engaged in developments within the European Union. Over the coming year, the focus of the Dutch Government will be particularly on climate and energy policies, internal and external security and stability, and ensuring a leading role for the EU in the world.

The Netherlands' Relations with the International Community

The Netherlands largely pursues its foreign policy within the framework of multilateral organisations such as the United Nations (UN), the European Union (EU) and the North Atlantic Treaty Organisation (NATO). The Netherlands was a founding member of the International Monetary Fund (IMF), the World Bank, the UN, the Western European Union (WEU), NATO and the European Communities (now the EU). The Netherlands sees its participation in such organisations as increasingly important given the need to tackle more and more problems, e.g. energy and climate change issues, on a worldwide scale. The Dutch concern for democracy and human rights has also led the Netherlands to promote the development of international law. The International Court of Justice of the UN has its seat in The Hague, as do the International Criminal Court, the Permanent Court of Arbitration, the International Criminal Tribunal for the former Yugoslavia and the Organisation for the Prohibition of Chemical Weapons (OPCW). The Netherlands is a regular contributor to UN peacekeeping operations. The Netherlands also sees development aid as an integral part of its foreign policy, and allocates 0.8% of its gross national product to pure development aid. Sweden, Norway and Denmark are the only other countries to keep to the international agreement on this allocation key.

The Netherlands' relations with the UK

The Netherlands and the UK are old and close friends and neighbours. Prime Ministers Tony Blair and Wim Kok agreed to further intensify relations in February 1999. There are regular exchanges between ministers and at political levels across a broad range of policy fields. The two countries work particularly closely on EU and foreign policy issues, and in the field of social and employment policies. The last bilateral meeting between the Foreign Secretary and the Dutch Minister of Foreign Affairs took place in July 2007. There is extremely close co-operation between the Dutch and UK Armed Forces, and a UK-Netherlands Amphibious Force is based in Portsmouth.

One element of the 1999 Prime Ministerial agreement was the establishment of a bilateral conference where representatives of various sectors of society could meet informally to discuss topical issues of mutual interest. Because the first conference was held in the Dutch town Apeldoorn in 2000, the Conference is now referred to as the Apeldoorn Conference Series. A Young Apeldoorn Conference Series has also been established. After 2000, subsequent (Young) Apeldoorn Conferences have been held in Edinburgh (2001), Amsterdam (2003), Norwich (March 2005). The Hague (2007) and Belfast (2008). The next conference is planned to take place in Belfast in October 2009. See for more information the website of the Apeldoorn Conference Series.

Apeldoorn Conference

Cultural Relations with the UK

Approximately 73,000 (2009) British people live in the Netherlands. 1.8 million Dutch people visited the UK in 2007, while 1.7 million British people stayed overnight in tourist accommodation in the Netherlands. Most British visitors stay in the province of North Holland, and in the four largest cities (Amsterdam, The Hague, Rotterdam & Utrecht).

At least forty Dutch towns and cities are twinned with British towns and cities. The BBC is the oldest foreign language TV broadcaster in the Netherlands. BBC radio and four BBC TV channels are widely available. British newspapers and magazines are also well read, as over 75% of the population speaks and reads English.

The British Council is the UK’s principal agency for cultural relations with the Netherlands and other countries. Their objective is to build mulually beneficial relationships with people in the UK and other countries. They promote the UK in its entirety, reflecting and celebrating its cultural, ethnic and political diversity. For more information, please visit the website of the British Council Netherlands.

The website of the Netherlands Embassy in London includes information on Netherlands-related cultural events in the UK.

Recent Visits

Inward:

  • Prime Minister Balkenende visited London for talks with the Prime Minister in 5 March 2004 and in October 2002.
  • Foreign Minister Ben Bot visited the UK for talks with Jack Straw in January 2004.
  • Foreign Maxime Verhagen visited the UK for talks with Jack Straw in July 2007.

Outward:

  • Prime Minister Tony Blair held talks with Wim Kok in the Netherlands, 4 June 1999.
  • The Foreign Secretary held talks with Dutch Foreign Minister Van Aartsen in The Hague, 21 February 2002.
  • Foreign Office Minister Bill Rammell visited the Netherlands in March 2003.
  • Foreign Office Minister Lord Triesman visited the Netherlands in November 2005
  • Foreign Office Minister Dr Howells visited the Netherlands in November 2005
  • Minister for Europe Geoff Hoon visited the Netherlands in January 2007.

GEOGRAPHY

The Netherlands is in Western Europe. It is, in line with the stereotype, a very flat country. Nearly a quarter of it lies below sea level. The country’s lowest point, at 6.7 metres below sea level, is near Rotterdam. The highest point, the Vaalserberg, is 321 metres high, and lies in the southeast, where the borders of the Netherlands, Belgium and Germany meet. Being close to the sea, the Netherlands has a moderate climate. The mean temperature is 17 degrees Celsius in the summer and 2 degrees Celsius in winter. Its average annual rainfall is 750mm, spread fairly evenly throughout the year.

Bordering countries (and border length)

  • Belgium 450 km
  • Germany 577 km

TRADE AND INVESTMENT

Trade and Investment with the UK

The Netherlands and UK are old and close trading partners. The Dutch have a long trading history with us and are one of our major trade and investment partners globally. The Netherlands is the UK’s third largest bilateral trading partner at £38bn in 2007; our third largest export market gobally (behind only the US and Germany) and our second largest within the EU. Total exports in 2007 equalled £14.9 bn. Imports from the Netherlands were £22.8bn in 2007. These are  remarkable figures for a country with a population less than one third the size of the UK’s.

We are significant investors in each other’s economies. The Netherlands is the third largest foreign investor in the UK valued at over £60bn spread over 4000 companies including major Anglo/Dutch companies such as Royal Dutch Shell, Univever and Corus.

UK Trade & Investment Country Profile: The Netherlands

POLITICS

The Netherlands is a constitutional monarchy with a Parliament (the States-General) consisting of two chambers. The upper or First Chamber consists of 75 members elected by members of the Provincial States. The lower or Second Chamber consists of 150 members directly elected by proportional representation, for a four year term. Dutch Government ministers give up their seat in Parliament on taking ministerial office. The Government can also appoint as ministers individuals who have not stood for election.

Composition of Parliament

  • First Chamber: CDA (21), PvdA (14), VVD (14), Socialist Party (12), Christian Union (4), Green Left (4), D66 (2), Animal Rights Party (1), Others (3).
  • Second Chamber: CDA (41), PvdA (33), Socialist Party (25), VVD (22), PVV (9), Green Left (7), Christian Union (6), D66 (3), SGP (2), Animal Rights (2).
Dutch Parliament

Recent political developments

The elections in May 2002 saw the CDA revitalised as the largest party after eight years in opposition, while the Labour Party performed badly. The party of assassinated populist politician Pim Fortuyn (LPF) also did well in its first election, winning the second largest number of seats. A CDA/Liberal/LPF coalition led by Prime Minister Jan Peter Balkenende took office in July 2002, but collapsed just three months later.

In subsequent elections in January 2003, the CDA again won the most number of seats, and Labour won back most of the seats it had lost a year earlier to the LPF. After several months of negotiations the CDA and two liberal parties (VVD and D66) reached a coalition agreement. In May 2003 Balkenende’s second centre-right Government was sworn in, whilst Labour remained in opposition.

In June 2006 the Government tendered its resignation after the smallest of the three coalition parties, D66, (6/150 seats) withdrew parliamentary support in protest against the Government’s handling of the affair concerning the citizenship of Somali born Dutch MP Ayaan Hirsi Ali. The Queen subsequently took advice from party leaders and asked former Prime Minister Lubbers to broker a new minority coalition of Christian Democrats (CDA) and Liberals (VVD) in advance of fresh elections in the November 2006.

Following the general election and over two months of negotiations the Christian Democrats (CDA), the Labour Party (PvdA) and the smaller Christian Union (CU) reached agreement on their coalition agreement on 7 February 2007. Queen Beatrix formally appointed the Government on Thursday 22 February 2007. The CDA/PvdA/CU coalition is the fourth Government to be led by Prime Minister Jan Peter Balkenende. The CDA won 41 seats in the 150-seat Parliament beating the PvdA, which won 33. The CDA's outgoing coalition partner the Liberals (VVD), was pushed into fourth place with 22 seats and overtaken by the left wing Socialist Party (SP) with 25 seats. Voters moved away from the traditional parties, boosting not only the vote of the SP but also that of a new anti-immigration Party for Freedom (PVV) led by Geert Wilders.

Elections

The last elections in the Netherlands were held on 22 November 2006. For further details of last election results Election Guide.

Next Parliamentary elections:

Lower House: May 2011
Upper House: May 2011

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