Country Data Netherlands
The Netherlands is a founding member of the European Union, with Amsterdam as its capital and Dutch as its official EU language. It has been part of the EU since 1 January 1958 and adopted the euro in 1999 as a founding member of the euro area. The Netherlands joined the Schengen area in 1995, supporting free movement across much of Europe. With its relatively small geographic size but high population density and strong GDP per capita measured in purchasing power standards, the country ranks among the EU’s most economically advanced and globally connected member states.
Politically, the Netherlands is organised as a parliamentary constitutional monarchy. Executive authority is exercised by the government, led by the prime minister, while the monarch serves as head of state with largely ceremonial responsibilities. Government decisions are taken by the council of ministers. Administratively, the country is divided into 12 provinces and several hundred municipalities, complemented by a unique system of regional water authorities responsible for water management, flood control, and environmental protection. In addition to its European territory, the Kingdom of the Netherlands includes several overseas countries and territories in the Caribbean, which are not part of the European Union.
The Dutch economy is highly diversified, open, and internationally oriented. In 2020, public administration, defence, education, healthcare, and social services represented the largest share of economic activity. Wholesale and retail trade, transport, accommodation, and food services formed another major pillar, reflecting the Netherlands’ role as a European logistics and distribution hub. Professional, scientific, and technical services, along with administrative and support activities, also played a significant role. Trade is deeply integrated within the European single market, which accounts for roughly two thirds of Dutch exports. Germany is by far the most important export partner, followed by Belgium and France, while the United States and the United Kingdom are key destinations outside the EU. Imports show a more global profile, with substantial volumes coming from EU partners such as Germany and Belgium, alongside significant imports from China and the United States.
Within the European Union, the Netherlands plays an active and influential role. It is represented by 29 Members of the European Parliament and maintains a European Parliament office to support communication and engagement at national level. Dutch government representatives participate regularly in meetings of the Council of the European Union, contributing to the adoption of EU legislation and the coordination of policy across all major areas. The Netherlands has also held the rotating Presidency of the Council of the EU on several occasions, reflecting its long-standing involvement in European governance.
At the level of the European Commission, the Netherlands is represented by its nominated Commissioner, currently responsible for climate action, highlighting the country’s strong focus on sustainability and environmental policy. The Netherlands is also well represented in EU advisory bodies, with 12 members each on the European Economic and Social Committee and the European Committee of the Regions, ensuring that social, economic, and regional perspectives are reflected in EU decision-making.
The Netherlands maintains a permanent representation to the European Union in Brussels, which serves as the main channel for advancing national interests and coordinating positions with EU institutions. As a prosperous member state, the Netherlands contributes to the EU budget in line with its economic capacity. These contributions support a wide range of EU-funded programmes and projects across all member states, aimed at promoting economic development, innovation, social cohesion, and sustainability for the benefit of Europeans as a whole.
