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The Dutch United Provinces declared their independence from Spain in 1579; during the 17th century, they became a leading seafaring and commercial power, with settlements and colonies around the world. After a 20-year French occupation, a Kingdom of the Netherlands was formed in 1815. In 1830 Belgium seceded and formed a separate kingdom. The Netherlands remained neutral in World War I, but suffered invasion and occupation by Germany in World War II. A modern, industrialized nation, the Netherlands is also a large exporter of agricultural products. The country was a founding member of NATO and the EEC (now the EU), and participated in the introduction of the euro in 1999.
water pollution in the form of heavy metals, organic compounds, and nutrients such as nitrates and phosphates; air pollution from vehicles and refining activities; acid rain
party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Kyoto Protocol, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified:
none of the selected agreements
23 January 1579 (the northern provinces of the Low Countries conclude the Union of Utrecht breaking with Spain; on 26 July 1581 they formally declared their independence with an Act of Abjuration; however, it was not until 30 January 1648 and the Peace of Westphalia that Spain recognized this independence)
based on civil law system incorporating French penal theory; constitution does not permit judicial review of acts of the States General; accepts compulsory ICJ jurisdiction with reservations
elections:
the monarchy is hereditary; following Second Chamber elections, the leader of the majority party or leader of a majority coalition usually appointed prime minister by the monarch; deputy prime ministers appointed by the monarch
note:there is also a Council of State composed of the monarch, heir apparent, and councilors that provides consultations to the cabinet on legislative and administrative policy
bicameral States General or Staten Generaal consists of the First Chamber or Eerste Kamer (75 seats; members indirectly elected by the country's 12 provincial councils to serve four-year terms) and the Second Chamber or Tweede Kamer (150 seats; members elected by popular vote to serve four-year terms)
elections:
First Chamber - last held 29 May 2007 (next to be held in May 2011); Second Chamber - last held 9 June 2010 (next to be held by June 2015)
election results:
First Chamber - percent of vote by party - NA%; seats by party - CDA 21, PvdA 14, VVD 14, Socialist Party 11, Christian Union 4, Green Left Party 4, D66 2, other 5; Second Chamber - percent of vote by party - VVD 20.5%, PvdA 19.6%, PVV, 15.4%, CDA 13.6%, SP 9.8%, D66 6.9%, GL 6.7%, CU 3.2, other 4.3%; seats by party - VVD31, PvdA 30, PVV 24, CDA 21, SP 15, D66 10, GL 10, CU 5, other 4
Christian Democratic Appeal or CDA [Jan Peter BALKENENDE]; Christian Union [Andre ROUVOET]; Democrats 66 or D66 [Alexander PECHTOLD]; Green Left [Femke HALSEMA]; Labor Party or PvdA [Wouter BOS]; Party for Freedom or PVV [Geert WILDERS]; Party for the Animals or PvdD [Marianne THIEME]; People's Party for Freedom and Democracy or VVD [Mark RUTTE] (Liberal); Reformed Political Party of SGP [Bas VAN DER VLIES]; Socialist Party [Agnes KANT]; plus a few minor parties
Christian Trade Union Federation or CNV [Bert VAN BOGGELEN]; Confederation of Netherlands Industry and Employers or VNO-NCW [Bernard WIENTJES]; Federation for Small and Medium-sized businesses or MKB [Loek HERMANS]; Netherlands Trade Union Federation or FNV [Agnes JONGERIUS]; Social Economic Council or SER [Alexander RINNOOY KAN]; Trade Union Federation of Middle and High Personnel or MHP [Richard STEENBORG]
three equal horizontal bands of red (top), white, and blue; similar to the flag of Luxembourg, which uses a lighter blue and is longer; the colors were those of WILLIAM I, Prince of Orange, who led the Dutch Revolt against Spanish sovereignty in the latter half of the 16th century; originally the upper band was orange, but because it tended to fade to red over time, the red shade was eventually made the permanent color; the banner is perhaps the oldest tricolor in continuous use
The Netherlands economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs only 2% of the labor force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The country has been one of the leading European nations for attracting foreign direct investment and is one of the four largest investors in the US. After 26 years of uninterrupted economic growth, the Netherlands' economy - which is highly open and dependent on foreign trade and financial services - was hard-hit by global economic crisis. Dutch GDP contracted 3.9% in 2009, while exports declined nearly 25% due to a sharp contraction in world demand. The Dutch financial sector has also suffered, due in part to the high exposure of some Dutch banks to U.S. mortgage-backed securities. In response to turmoil in financial markets, the government nationalized two banks and injected billions of dollars into a third, to prevent further systemic risk. The government also sought to boost the domestic economy by accelerating infrastructure programs, offering corporate tax breaks for employers to retain workers, and expanding export credit facilities. The stimulus programs and bank bailouts, however, have resulted in a government budget deficit of nearly 4.6% of GDP in 2009 that contrasts sharply with a surplus of 0.7% of GDP in 2008. With unemployment rising, the government of Prime Minister Jan Peter BALKENENDE is likely to come under increased pressure to keep the budget deficit in check while promoting economic recovery.
note:see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
general assessment: highly developed and well maintained
domestic:
extensive fixed-line fiber-optic network; large cellular telephone system with 5 major operators utilizing the third generation of the Global System for Mobile Communications (GSM) technology; one in five households now use Voice over the Internet Protocol (VoIP) services
international:
country code - 31; submarine cables provide links to the US and Europe; satellite earth stations - 5 (3 Intelsat - 1 Indian Ocean and 2 Atlantic Ocean, 1 Eutelsat, and 1 Inmarsat (2007)
more than 90% of households are connected to cable or satellite TV systems that provide a wide range of domestic and foreign channels; public service broadcast system includes multiple broadcasters, 3 with a national reach and the remainder operating in regional and local markets; 2 major nationwide commercial television companies, each with 3 or more stations, and a large number of commercial TV stations in regional and local markets; nearly 600 radio stations operating with a mix of public and private stations providing national or regional coverage (2008)
by type:
bulk carrier 1, cargo 464, carrier 21, chemical tanker 57, container 73, liquefied gas 19, passenger 17, passenger/cargo 15, petroleum tanker 5, refrigerated cargo 10, roll on/roll off 21, specialized tanker 3
foreign-owned:
217 (Australia 1, Denmark 36, Finland 14, France 2, Germany 92, Ireland 7, Italy 9, Japan 1, Norway 18, Sweden 18, UAE 4, US 15)
registered in other countries:
240 (Antigua and Barbuda 18, Australia 1, Bahamas 22, Belize 1, Cambodia 1, Canada 1, Cyprus 24, Gibraltar 33, Liberia 35, Luxembourg 2, Malta 2, Marshall Islands 16, Netherlands Antilles 52, Panama 8, Paraguay 1, Philippines 18, Portugal 1, Saint Vincent and
Royal Netherlands Army, Royal Netherlands Navy (includes Naval Air Service and Marine Corps), Royal Netherlands Air Force (Koninklijke Luchtmacht, KLu), Royal Military Police (2010)
major European producer of synthetic drugs, including ecstasy, and cannabis cultivator; important gateway for cocaine, heroin, and hashish entering Europe; major source of US-bound ecstasy; large financial sector vulnerable to money laundering; significant consumer of ecstasy
The online Factbook is updated bi-weekly. ISSN 1553-8133
For additional information on government leaders in selected foreign countries, go to World Leaders.