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Email: President@eurasiacenter.org
Country Report: The Netherlands
Background
The Netherlands is constitutional monarchy located in Western Europe. The nation’s
name comes from the fact that it is a low lying country with more and a quarter of
the nation under the sea level.1 With a Human Development Index value of 0.921,
the Netherlands is ranked 4th in the world for highest HDI.2 Technology plays a big
role in the Dutch economy with the Philips Electrical Co. being the greatest
electronics firm in Europe.3 Dutch based Royal Dutch/Shell Group owns refineries at
Curaçao, considered to be one of the largest oil refineries in the world.4 The
demographics of the Netherlands include: 80.7% Dutch, 5% other EU Europeans,
2.4% Indonesian, 2.2% Turkish, 2% Surinamese, 2% Moroccan, 0.8% Caribbean,
and 4.8% other (2008 estimate).5
Economy
The Netherlands adapted the Euro in 2002. Prior to joining the European Union, the
Netherlands formed the Benelux Economic Union with Belgium and Luxembourg.
Internal trade in Benelux became free of tariffs by 1956. Currently the Netherlands
has a credit rating of AAA.6 The Netherlands claims the title of fifth largest economy
in the EU.7 Despite the Netherlands’ history of having a strong economy, like many
European Union nations it is expected to face some economic turbulence because of
the three recessions the Netherlands have been in since 2009. As of now the Dutch
government is responding by cutting 46 billion in their budget and raising taxes.8
http://news.bbc.co.uk/2/hi/europe/country_profiles/1043423.stm
http://hdrstats.undp.org/images/explanations/NLD.pdf
3 http://www.nationsencyclopedia.com/Europe/Netherlands-INDUSTRY.html
4 Ibid.
5 https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html#People
6 http://www.standardandpoors.com/ratings/sovereigns/ratingslist/en/us?sectorName=null&subSectorCode=&filter=N
7 http://www.eubusiness.com/europe/netherlands
8 http://uk.reuters.com/article/2013/06/10/uk-dutch-economy-idUKBRE9590EQ20130610
1
2
Economic Data
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GDP 2012: $836.26 billion9
Per Capita GDP, PPP 2012: $43,338.8410
GDP Growth rate 2012: -0.10%11
Central Government Debt 2012 (% of GDP): 68.7%12
Current Account Balance 2012: $77.2 billion13
Inflation, Consumer Prices (Annual) 2012: 2.4%14
Unemployment 2012: 6.8%15
Total Labor Force 2012: 7.746 million16
Agricultural products: grains, sugar beets, fruits, vegetables, livestock, fruits,
potatoes17
Industries: electrical machinery and equipment, chemicals, petroleum,
construction, microelectronics, fishing, metal and engineering equipment,
agro industries18
Exports 2012: $556.5 billion19
GDP 2004 to 2012 Billions of US$20
http://www.tradingeconomics.com/netherlands/gdp
Ibid.
11 Ibid.
12 http://www.indexmundi.com/netherlands/public_debt.html
13 http://www.indexmundi.com/netherlands/current_account_balance.html
14 http://www.indexmundi.com/netherlands/inflation_rate_(consumer_prices).html
15 http://www.indexmundi.com/netherlands/unemployment_rate.html
16 http://www.indexmundi.com/netherlands/labor_force.html
17 Ibid.
18 Ibid.
19 http://www.indexmundi.com/netherlands/exports.html
20 http://www.tradingeconomics.com/netherlands/gdp
9
10
Environment
Situated in a low lying area, climate change is a big concern in the Netherlands
because of the threat of rising sea levels. What sets the Dutch approach in fighting
climate change apart from other EU nations is that in the Netherlands
environmental protection is largely decentralized. Each province and locality is
given the authority to carry out environmental policies. However, the provinces of
the Netherlands are responsible for performing national environmental duties and
keeping up with national standards. Following national waste and groundwater
management guidelines and issuing environmental permits are a few of the many
responsibilities provincial governments have. The national regulations on public
safety, noise, odor, and local air quality are expected to be followed by municipal
councils.21
Environmental Data*
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CO2 emissions(kt) 2009 :169,65022
Per Capita CO2 emissions(metric tons) 2009 :10.323
Nitrous oxide emissions (1,000’s metric tons of CO2 equivalent) 2010:
9,20524
Emissions of HFC, PFC, and SF6 (greenhouse gases) (in 1,000’s metric tons of
CO2 equivalent) 2010: 4,90725
Fossil fuel energy consumption (% of total energy) 2011: 92.326
Alternative and Nuclear energy consumption (% of total energy) 2011: 2.027
*As of 2013, the statistics above are the most accurate
http://www.eea.europa.eu/soer/countries/nl/soertopic_view?topic=country%20introduction
http://data.worldbank.org/indicator/EN.ATM.CO2E.KT
23 http://data.worldbank.org/indicator/EN.ATM.CO2E.PC
24 http://data.worldbank.org/indicator/EN.ATM.NOXE.KT.CE
25 http://data.worldbank.org/indicator/EN.ATM.GHGO.KT.CE
26 http://data.worldbank.org/indicator/EG.USE.COMM.FO.ZS
27 http://data.worldbank.org/indicator/EG.USE.COMM.CL.ZS
21
22
CO2 Emissions in kt 2003-200928
Politics and International Relations
Political Structure
The three main institutions of the national government are the Monarch, the Council
of Ministers, and the States General (parliament). Local governments exist under
this central government. The Netherlands is divided into 12 provinces: Drenthe,
Flevoland, Fryslan (Friesland), Gelderland, Groningen, Limburg, Noord-Brabant
(north Brabant), Noord-Holland (North Holland), Overijssel, Utrecht, Zeeland
(Zealand), Zuid-Holland (South Holland).29The first-level administrative divisions
are the 12 provinces, which are each governed by a locally elected provincial council
and a provincial executive appointed by members of the provincial court. The
province is formally led by a queen’s commissioner appointed by the Crown.30

Executive Branch: consists of the monarch (chief of state), King WillemAlexander (since 2013); a Prime Minister who is the head of government
(Mark Rutte since 2010) and Deputy Prime Minister Lodewijk Asscher (since
2012); and the cabinet, Council of Ministers appointed by the monarch31
o Executive Branch Elections: The monarchy is hereditary; after Second
Chamber elections, the leader of the majority party or coalition is
usually appointed prime minister by the monarch; the deputy prime
minister is appointed by the monarch32
o The Monarch: the titular head of state with a largely ceremonial
function. They have the power to appoint the “formateur” who forms
the Council of Ministers following elections.33
http://databank.worldbank.org/data/views/reports/chart.aspx
https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
30 Ibid.
31 https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
32 Ibid.
33 http://www.state.gov/r/pa/ei/bgn/3204.htm
28
29
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o The Council of Ministers: plans and implements government policy.
This council and the Monarch together make up “the Crown.” The
ministers are responsible to the States General. These Ministers
cannot be members of Parliament at the same time.
o Executive Branch Council of State: constitutionally established
advisory body to the government and serves as the country’s highest
administrative court;34 composed of monarch, heir apparent, and
councilors; gives consultations to the cabinet on legislative and
administrative policy;35 The Council of State must be consulted by the
cabinet on proposed legislation before a law is submitted to the
parliament.36
Legislative Branch: bicameral parliament or States General (Staten Generaal)
consisting of the First Chamber (Eerste Kamer) and the Second Chamber
(Tweede Kamer);37 historically governments have been based on the support
of a majority in both houses of parliament; the Second Chamber is the most
important of the two; both have the right to question ministers and state
secretaries38
o Legislative Branch First Chamber: 75 seats; members indirectly
elected by the 12 provincial councils of the country; members serve 4
year terms;39 must approve bills passed by the Second Chamber
before the bills become laws; meets only once a week and its
members usually have other full-time jobs40
o Legislative Branch Second Chamber: 150 seats; members elected by
popular vote (members represent the whole country rather than
individual districts as in the U.S. and are usually elected on party
slates rather than on a personal basis, thus making coalition
government almost inevitable);41 members serve 4 year terms;42 Has
the right to initiate legislation and amend bills submitted by the
Council of Ministers43
o Political Parties: Christian Democratic Appeal (CDA), Freedom Party
(PVV), Labor Party (PvdA), Liberal Party (VVD), Socialist Party (SP),
other minor parties44
Judicial Branch: Supreme Court (Hoge Raad) with 24 justices nominated by
the monarch who “serve for life”45 but are actually retired at age 70.46
Ibid.
https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
36 http://www.state.gov/r/pa/ei/bgn/3204.htm
37 https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
38 http://www.state.gov/r/pa/ei/bgn/3204.htm
39 https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
40 http://www.state.gov/r/pa/ei/bgn/3204.htm
41 Ibid.
42 https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
43 http://www.state.gov/r/pa/ei/bgn/3204.htm
44 http://www.state.gov/r/pa/ei/bgn/3204.htm
45 https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
46 http://www.state.gov/r/pa/ei/bgn/3204.htm
34
35
o Courts: There are 62 cantonal courts, 19 district courts, 5 courts of
appeal, and the Supreme Court
o Legal System: civil law system based on French system; judicial review
of acts of the States General is not permitted by the constitution47
Role in the European Union
The Netherlands helped found NATO, the EEC, and subsequently the European
Union.48 Together with 26 other European states, the Netherlands works with the
EU to improve relations and functions between member states.49 Through
cooperation with other EU members, the Netherlands have successfully established
free borders within the EU.50 Military operations are also collaborative efforts the
Dutch have with EU, past operations include: peacekeeping and reconstruction
efforts in Bosnia, Kosovo, and Afghanistan.51 Participation in the European
Community Humanitarian Office, the EU’s humanitarian aid organization, is another
EU project that the Netherlands is involved in.52
Dutch Drug Policy and Transnational Relations
The Netherlands is a major European producer of synthetic drugs such as ecstasy
and cannabis. It is a major entrance into Europe for cocaine, heroin, and hashish.
The Netherlands is a significant consumer of ecstasy.53 The Dutch Opium Act
punishes production, import, commercial distribution, possession, and export of all
illicit drugs but does not consider drug use an offense. The act distinguishes
between hard and soft drugs and one of its main aims is to divide the markets for
the two categories of drugs so that soft drug users are less likely to encounter hard
drugs. There are “coffee shops” which function under strict conditions and controls
and allow for the sale of small quantities of cannabis products.54
Society
Immigration
One of the pressing issues in the Netherlands, as in many EU nations, is nonEuropean immigration. Particularly Muslim immigration became a concern after a
Muslim extremist murdered Theo van Gogh, who made a controversial film about
women in Muslim society. The current Prime Minister Mark Rutte is a member of
the Liberal Party (VVD) which is headed by Geert Wilders who believes in a ban on
https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
49 http://www.government.nl/issues/european-union/the-netherlands-eu-member-state
50 http://www.government.nl/issues/european-union/the-netherlands-and-the-eu-policy-areas
51 http://www.government.nl/issues/european-union/the-netherlands-and-the-eu-policy-areas
52 http://www.government.nl/issues/european-union/the-netherlands-and-the-eu-policy-areas
53 https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
54 http://www.state.gov/r/pa/ei/bgn/3204.htm
47
48
new mosques and calls for an end to Muslim immigration.55 But the Dutch have not
fully abandoned their long historical appreciation of multiculturalism; while antiimmigration politicians are gaining power, the majority of the Dutch still oppose
these extreme measures and many have compared Wilder’s stance to fascism.56
Acknowledgements:
Research and Data Development Provided by: Tarif Ullah, Research Assistant,
under the supervision and coordination of Dr. Gerard Janco, President,
Eurasia Center/EBC
55
http://news.bbc.co.uk/2/hi/europe/country_profiles/1043423.stm
56http://www.nytimes.com/2011/08/14/world/europe/14dutch.html?pagewanted=all&_r=0