Political landscape
If the presence of Mark Rutte, Prime Minister since 2010, is a sign of stability, the aura of the man nicknamed "Mr. Teflon" has faded considerably. In 2020, he had to resign his government following a huge scandal related to social assistance. Ethnic profiling of potential fraudsters had put more than 25,000 families in difficulty. The success of his VVD party in the March 2021 elections was followed by another scandal involving the political leader of the CDA, whom Rutte allegedly tried to find a job elsewhere because he had helped expose the welfare scandal... It took over nine months to form a cabinet. His management of the Covid crisis, at first rather flexible (lax according to some) and then more authoritarian, even led to a traumatic curfew that generated serious riots.
Inflation, the current scourge
The year 2022 begins with galloping inflation, heralding serious economic problems for households. In March, it reached almost 10%... The government anticipates an astronomical rise in rents in 2023, which could put many residents at risk.
Housing, an insoluble problem
The Netherlands in general and Amsterdam in particular have been facing a serious housing problem for several years. Prices have skyrocketed and young professionals are simply not able to buy their own homes in many cities... This very problematic situation, coupled with the labor shortage, seems to be long-lasting and is putting a huge strain on the economy. During your visit, you will probably notice limited hours in some bars and restaurants. This is one manifestation of the complex situation that is slowing down the economy. For the country, the repercussions in education and health care personnel are enormous.
Farmers at the heart of current issues
The Netherlands has the most efficient agriculture in the European Union. The kingdom is on all levels of technical innovation to make the sector even more efficient. In recent years, serious health scandals have brought the country into disrepute. Recently, the country has almost officially put an end to intensive livestock farming. The government has taken measures to force farmers to reduce their nitrogen emissions or to switch to other crops. The recent coalition released a 25 billion euro envelope to help the sector reduce greenhouse gas emissions from fertilizers and effluents. These measures, which can go as far as expropriation, have generated huge protests from farmers since 2019.
Mark Rutte, Mr Teflon or the man without quality?
For many, after 10 years as head of the Dutch government, Mark Rutte remains an enigma. Little seems to get through to him, so much so that he has been called "Mr. Teflon" by some specialists. He seems to be resisting everything, from unlikely coalitions with the agreement of an extreme party, to various scandals, to his fluctuating management of the Covid crisis. He stands his ground and everything seems to slide on his perfectly tailored suits. Since the Brexit, he is the one who, within Europe, has become Mr. "No," leader of the so-called frugal countries. These countries did not want to unconditionally help the European countries during the Covid crisis. His attitude, which was reviled in Europe, was appreciated by many in the country where social reforms and the extension of the retirement age had been introduced long ago. He and his liberal party, the VVD, even managed to win re-election in March 2021, in the midst of a pandemic. His management of Covid has been nothing but perfectly controlled and documented reversals. Recently, he was criticized for his lack of enthusiasm and flame in the context of the war in Ukraine... And the latest controversy concerns his "drastic" management of SMS that he deletes upon receipt, preventing any investigation into his actions
This man, about whom so little is known, gives lessons once a week in a school in The Hague...
Main resources of the country
The main resources of the country are agriculture and fishing as well as industry
Agriculture: the Dutch miracle. Despite its size, the country is the third largest exporter of agricultural products in the world. The country is distinguished by dairy farming and horticulture. About 5% of the Dutch workforce is employed in agriculture, which generates about 3.5% of GDP. About 80% of the agricultural products are exported to EU countries, mainly to Germany. Intensive livestock farming (increasingly denounced, fortunately), market gardening and bulb farming, and the dairy industry are strongly export-oriented. Horticulture is a growing industry both economically and in terms of cultivated area. The main products are flowers, vegetables, fruits, mushrooms, trees and flower bulbs. In recent months, the livestock sector has been in crisis due to the government's target of a 30% reduction in livestock numbers. This measure aims to limit nitrogen oxide emissions to meet the country's green objectives for 2030.
Fishing. The main branches of professional fishing in the Netherlands are deep-sea and coastal fishing, plus shellfish farming, inland fishing and aquaculture. The Netherlands has a modern fleet of trawlers and cutters. The cutters are used for fishing plaice, sole, cod, whiting, herring and shrimp. Shellfish are mainly cultivated in Zeeland (in the southwest of the Netherlands) and in the Wadden Sea. The main fishing ports are Ijmuiden, Scheveningen and Urk.
Industry. The only open-cast mining in the Netherlands is of cheap materials: gravel, sand, clay, marl and limestone. The subsoil contains oil, gas, coal and salt (the discovery of natural gas caused the closure of the coal mines). The exploitation of natural gas is considerable, both on the continent and in the North Sea, reaching its highest level in 1979. The exploitation of considerable natural gas reserves in the north of the country, around Groningen, has made the Netherlands the leading producer of natural gas in Western Europe. The end of this exploitation announced in 2018 for 2030 is motivated by repeated earthquakes in the region
Finally, the entire western sector of the port of Amsterdam is a gigantic petrochemical complex where numerous industries have been established. The transport of oil by pipeline to the port of Rotterdam has contributed to the development of the Amsterdam industrial area (about 15,000 companies), which remains the largest industrial city in the country. In addition to chemicals, the aeronautical, automotive, electrical engineering, machine and tool industries and other companies specializing in precision mechanics are doing well and provide the bulk of industrial production. Amsterdam is the capital of the diamond industry, but it also has a remarkable expertise in the art of woodworking and leatherworking, and its soap factories are the oldest in the city.
Tourism, a controversial windfall
While the Netherlands, and Amsterdam in particular, is a very popular tourist destination, this sector is also a source of exasperation for many residents. Indeed, the country is an accessible destination with an inexhaustible wealth of heritage. Amsterdam has many of the cultural and social advantages of a capital city without really knowing the disadvantages. The city is small and can be navigated on foot. The presence of the bicycle adds a pleasant and healthy touch. The city is much less tiring and stressful than other large European cities, its inhabitants seem to enjoy a quality of life that many Parisians would envy! However, the capital suffers from its popularity and the council had to take measures as mass tourism was threatening the capital. From now on, Airbnb are regulated, horse-drawn carriages and other aberrations are forbidden, electric scooters too... The center has put a stop to new hotels in the hypercenter.
The number of foreign tourists visiting the country is constantly increasing. In 2019, more than 20 million tourists visited the Netherlands, most of them from Europe. The Netherlands is a very popular destination among Germans while Americans, British, Belgians, Canadians, French are also numerous to visit the other country of cheese. In the last 15 years, the country has also attracted more and more tourists from Italy and Spain and also many Eastern Europeans, especially Czechs and Russians, as well as Asians. Chinese tourists are increasingly present.
These visitors spend more than 32 billion euros during their stay. Tourists spend very short vacations in the Netherlands, the average stay is 3.2 nights and is often limited to a visit to Amsterdam.
Finally, it should be noted that the most likely tourists to visit the Netherlands are the Dutch themselves, who account for 25 million tourists.
Political parties
The voting system - full proportional representation - allows for a multitude of parties. Since the last parliamentary elections, nine parties sit in the Second Chamber: four in the government and 12 in the opposition and non-attached members. Political life is in fact dominated by four major parties: the Labour Party (PvdA), the People's Party for Freedom and Democracy (VVD) and the Christian Democratic Appeal (CDA) and the D66 Democrats
PVV. Geert Wilders' conservative and nationalist (and clearly anti-Islam) Partij van de Vrijheid is now represented in Parliament, appealing to former Fortuyn voters and voters who find the VVD too centrist.
The PvdA. Founded in 1946, the Labour Party (PvdA) emerged from the trade union movement. It claims to be social democratic and recruits voters from all walks of life.
The liberals of the VVD, created in 1948, claim to be the descendants of Thorbecke, the father of the 1848 constitutional amendment. The CDA was formed by the merger of three Christian parties.
Other parties represented in Parliament include the liberals of Democrats 66 (D66), the Greens, the strict Calvinists (SGP and Christen Unie) and, to the left of the PvdA, the SP (Socialist Party), as well as 50+ (for people over 50!), Denk (a movement of Turkish origin that emerged from the PVDA) and Forum voor Democratie, a right-wing populist and Eurosceptic party headed by Thierry Baudet.
