Netherlands Netherlands Background The 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 EC (now the EU), and participated in the introduction of the Economic and Monetary Union (EMU) in 1999. Netherlands Economy The Netherlands is a prosperous and open economy depending heavily on foreign trade. The 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 no more than 4% 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 continues to be one of the leading European nations for attracting foreign direct investment. Economic growth slowed considerably in 2001-03, as part of the global economic slowdown, but for the four years before that, annual growth averaged nearly 4%, well above the EU average. The government is wrestling with a deteriorating budget position, and is moving toward the EU 3% limit. Netherlands Location Western Europe, bordering the North Sea, between Belgium and Germany Netherlands Flag three equal horizontal bands of red (top), white, and blue; similar to the flag of Luxembourg, which uses a lighter blue and is longer; one of the oldest flags in constant use, originating with William I, Prince of Orange, in the latter half of the 16th century
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