The Netherlands: Economy Overview

23 October 2009
by Ina Dimireva -- last modified 10 May 2012

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.

Year of EU entry: Founding member (1952)

Member of Schengen area:Yes

Political system: Constitutional monarchy

Capital city: Amsterdam

Total area: 41 526 km²

Population: 16.4 million

Currency: euro

Listen to the official EU language: Dutch

Map of The Netherlands The Netherlands, as the name indicates, is low-lying territory, with one-quarter of the country at or below sea level. Many areas are protected from flooding by dykes and sea walls. Much land has been reclaimed from the sea, the Flevoland polder being the most recent example.

The Dutch Parliament (or Staten Generaal) consists of two chambers. The first, with 75 members, is indirectly elected and has limited powers. The second chamber, or lower house, is directly elected. Members of both houses serve a four-year term. Given the country's multi-party system, all governments are coalitions.

Industrial activity in the Netherlands predominantly consists of food processing, chemicals, petroleum refining as well as electrical and electronic machinery. It has a dynamic agricultural sector and is well known for its plants and cut flowers. The port of Rotterdam is the busiest in Europe, serving a vast hinterland which stretches into Germany and central Europe.

The Netherlands has a history of great painters. The 17th century was the age of the Dutch Masters, such as Rembrandt van Rijn, Johannes Vermeer and Jan Steen. The 19th and 20th centuries were no less remarkable for their high-calibre artists like Vincent van Gogh and Piet Mondriaan.

Well-known Dutch specialities include raw herring, smoked eel and pea soup, as well as a wide variety of cheeses such as Edam and Gouda.