Government & Politics

The Netherlands has been a constitutional monarchy since 1815 and a parliamentary democracy since 1848; before that it had been a republic from 1581 to 1806 and a kingdom between 1806 and 1810 (it was part of France between 1810 and 1813). The Netherlands is described as a consociational state. Dutch politics and governance are characterized by an effort to achieve broad consensus on important issues, within both the political community and society as a whole. In 2007, The Economist ranked The Netherlands as the third most democratic country in the world.

The head of state is the monarch, at present Queen Beatrix. Constitutionally the monarch still has considerable powers, but in practice it has become a ceremonial function. The monarch can exert most influence during the formation of a new cabinet, where he/she serves as neutral arbiter between the political parties.

In practice the executive power is formed by Dutch cabinet. Because of the multi-party system no party has ever held a majority in parliament since the 19th century, therefore coalition cabinets have to be formed. The cabinet consists usually of around thirteen to sixteen ministers of which between one and three ministers without portfolio, and a varying number of state secretaries. The head of government is the Prime Minister of the Netherlands, who is often, but not always, the leader of the largest party in the coalition. In practice the Prime Minister has been the leader of the largest coalition party since 1973. He is a primus inter pares, meaning he has no explicit powers that go beyond those of the other ministers.

The cabinet is responsible to the bicameral parliament, the States-General which also has legislative powers. The 150 members of the Second Chamber, the Lower House are elected in direct elections, which are held every four years or after a cabinet crisis. The provincial assemblies are directly elected every four years as well. The members of the provincial assemblies elect the 75 members of the First Chamber, the Upper House, which has less legislative powers, as it can merely reject laws, not propose or amend them.

Both trade unions and employers organisations are consulted beforehand in policymaking in the financial, economic and social areas. They meet regularly with government in the Social-Economic Council. This body advises government and its advice cannot be put aside easily.

While historically the Dutch foreign policy was characterized by neutrality, since the Second World War the Netherlands became a member of a large number of international organisations, most prominently the UN, NATO and the EU. The Dutch economy is very open and relies on international trade.

The Netherlands has a long tradition of social tolerance. In the 18th century, while the Dutch Reformed Church was the state religion, Catholicism and Judaism were tolerated. In the late 19th century this Dutch tradition of religious tolerance transformed into a system of pillarization, in which religious groups coexisted separately and only interacted at the level of government. This tradition of tolerance is linked to the Dutch policies on recreational drugs, prostitution, same-sex marriage and euthanasia, which are among the most liberal in the world.

The Binnenhof is the centre of Dutch politics.Since suffrage became universal in 1919 the Dutch political system has been dominated by three families of political parties: the strongest family were the Christian democrats currently represented by the Christian Democratic Appeal (CDA), second were the social democrats, of which the Labour Party (PvdA) is currently the largest party and third were the liberals of which the People's Party for Freedom and Democracy (VVD) is the main representative. These cooperated in coalition cabinets in which the Christian democrats had always been partner: so either a centre left coalition of the Christian democrats and social democrats or a centre right coalition of Christian democrats and liberals. In the 1970s the party system became more volatile: the Christian democratic parties lost seats, while new parties, like the radical democrat and progressive liberal D66, became successful.

In the 1994 election the CDA lost its dominant position. A "purple" cabinet was formed by the VVD, D66 and PvdA. In 2002 elections this cabinet lost its majority, due to the rise of LPF, a new political party around the flamboyant populist Pim Fortuyn, who was shot to death a week before the elections took place. The elections also saw increased support for the CDA. A short lived cabinet was formed by CDA, VVD and LPF, led by the leader of the Christian democrats, Jan Peter Balkenende. After the 2003 elections in which the LPF lost almost all its seats, a cabinet was formed by the CDA, the VVD and D66. The cabinet initiated an ambitious program of reforming the welfare state, the health care system and immigration policies.

In June 2006 the cabinet fell, as D66 voted in favour of a motion of no confidence against minister of immigration and integration Rita Verdonk in the aftermath of the upheaval about the asylum procedure of Ayaan Hirsi Ali instigated by the Dutch immigration minister Verdonk. A care taker cabinet was formed by CDA and VVD, and the general elections were held on 22 November 2006. In these elections the Christian Democratic Appeal remained the largest party and the Socialist Party made the largest gains. The formation of a new cabinet started two days after the elections. Initial investigations toward a CDA-SP-PvdA coalition failed, after which a coalition of CDA, PvdA and ChristianUnion was formed.

Foreign Policy

The foreign policy of the Netherlands is based on four basic commitments: to the atlantic cooperation, to European integration, to international development and to international law. While historically the Netherlands was a neutral state, since the second World War the Netherlands became a member of a large number of international organisations. The Dutch economy is very open and relies on international trade. One of the more controversial international issues surrounding the Netherlands is its liberal policy towards soft drugs and position of the Netherlands one of the major exporters of hard drugs. During and after its golden age, the Dutch built up a commercial and colonial empire, which fell apart quickly after the second World War; the historical ties inherited from its colonial past still influence the foreign relations of the Netherlands.

The Dutch Government conducted a review of foreign policy main themes, organization, and funding in 1995. The document "The Foreign Policy of the Netherlands: A Review" outlined the new direction of Dutch foreign policy. The Netherlands prioritizes enhancing European integration, maintaining relations with neighboring states, ensuring European security and stability (mainly through the mechanism of NATO and emphasizing the important role the United States plays in the security of Europe), and participating in conflict management and peacekeeping missions. The foreign policy review also resulted in the reorganization of the Ministry of Foreign Affairs. Through the creation of regional departments, the Ministry coordinates tasks previously divided among the international cooperation, foreign affairs, and economic affairs sections.

The Dutch have been strong advocates of European integration, and most aspects of their foreign, economic, and trade policies are coordinated through the European Union (EU). The Netherlands' postwar customs union with Belgium and Luxembourg (the Benelux group) paved the way for the formation of the European Community (precursor to the EU), of which the Netherlands was a founding member. Likewise, the Benelux abolition of internal border controls was a model for the wider Schengen Accord, which today has 10 European signatories (including the Netherlands) pledged to common visa policies and free movement of people across common borders.

The Dutch stood at the cradle of the 1992 Maastricht Treaty and have been the architects of the Treaty of Amsterdam concluded in 1998. The Dutch have thus played an important role in European political and monetary integration; indeed, until the year 2003, Dutchman Wim Duisenberg headed the European Central Bank. In addition, Dutch financial minister Gerrit Zalm was the main critic of the violation of the Stability and Growth Pact by France and Germany in 2004 and 2005.

The liberal drug policy of the Netherlands has made the country one of a major producer and trading port of drugs. Major European producer of illicit amphetamines and other synthetic drugs; important gateway for cocaine, heroin, and hashish entering Europe. For example, a large portion of the world's XTC consumption is supplied by illegal laboratories from The Netherlands.

The Dutch also work closely with the U.S. and other countries on international programs against drug trafficking and organized crime. The Dutch-U.S. cooperation on joint anti-drug operations in the Caribbean is excellent, including an agreement establishing Forward Operating Locations on the Dutch Kingdom islands of Curaçao and Aruba. The Netherlands is a signatory to international counter-narcotics agreements, a member of the UN International Drug Control Program, the UN Commission on Narcotic Drugs, and is a leading contributor to international counter-narcotics.

Law

The Netherlands is a civil law country. Laws are written down, the application of customary law is the exception and the role of case law is small in theory although in practice it is impossible to understand the law in many fields without also taking into account the relevant case law. The Dutch system of law is based on the French Code Civil with influences from Roman Law and traditional Dutch customary law. The new civil law books (which went into force in 1992) were heavily influenced by the German Bürgerliches Gesetzbuch.

The primary law making body is formed by the Dutch parliament in cooperation with the government. When operating jointly to create laws they are commonly referred to as the legislature (Dutch: "wetgever"). The power to make new laws can be delegated to lower governments or specific organs of the State, but only for a prescribed purpose. A trend in recent years has been for parliament and the government to create "framework laws" and delegate the creation of detailed rules to ministers or lower governments (e.g. a province or municipality).