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Doing Business in the Netherlands 2012 - American Chamber of ...

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serve markets <strong>in</strong> <strong>the</strong> current and future Member States <strong>of</strong> <strong>the</strong><br />

European Union, <strong>the</strong> Middle East and Africa.<br />

1.3 Government<br />

Head <strong>of</strong> State Queen Beatrix<br />

Head <strong>of</strong> Government Prime M<strong>in</strong>ister Mark Rutte<br />

Form <strong>of</strong> Government Constitutional monarchy<br />

Seat <strong>of</strong> Government The Hague<br />

The Ne<strong>the</strong>rlands was one <strong>of</strong> <strong>the</strong> first parliamentary democracies.<br />

Among o<strong>the</strong>r affiliations, <strong>the</strong> country is a found<strong>in</strong>g member <strong>of</strong> <strong>the</strong><br />

European Union (EU), NATO, OECD and WTO. With Belgium and<br />

Luxembourg, it forms <strong>the</strong> Benelux economic union. The Ne<strong>the</strong>rlands<br />

itself is a constitutional monarchy with a parliamentary system <strong>in</strong><br />

which <strong>the</strong> government consists <strong>of</strong> <strong>the</strong> queen, <strong>the</strong> m<strong>in</strong>isters and <strong>the</strong><br />

state secretaries. For historical reasons, The Hague is <strong>the</strong> seat <strong>of</strong><br />

government but Amsterdam is <strong>the</strong> capital.<br />

As <strong>of</strong> 14 October 2010, <strong>the</strong> Ne<strong>the</strong>rlands has a m<strong>in</strong>ority government.<br />

This cab<strong>in</strong>et consists <strong>of</strong> <strong>the</strong> People’s Party for Freedom and<br />

Democracy (VVD) and <strong>the</strong> Christian Democratic Appeal (CDA). The<br />

Party for Freedom (PVV) provides tolerance support (gedoogsteun).<br />

This structure is <strong>the</strong> product <strong>of</strong> coalition agreement with tolerance.<br />

All three parties have agreed to sign <strong>the</strong> grace, but only <strong>the</strong> VVD and<br />

CDA have also signed <strong>the</strong> coalition. Mark Rutte is <strong>the</strong> Prime<br />

M<strong>in</strong>ister, while Queen Beatrix is <strong>the</strong> Head <strong>of</strong> State.<br />

There are 12 m<strong>in</strong>isters, most <strong>of</strong> whom are also heads <strong>of</strong> specific<br />

government m<strong>in</strong>istries, although <strong>the</strong>re are <strong>of</strong>ten one or two m<strong>in</strong>isters<br />

without portfolio who have areas <strong>of</strong> responsibility <strong>in</strong>side one or more<br />

m<strong>in</strong>istries. Most m<strong>in</strong>istries also have a state secretary who is<br />

responsible for part <strong>of</strong> <strong>the</strong> relevant portfolio. Two state secretaries<br />

(namely, those for European Affairs and International Trade) are<br />

given <strong>the</strong> right to call <strong>the</strong>mselves “m<strong>in</strong>ister” <strong>in</strong> o<strong>the</strong>r countries and be<br />

treated as such for protocol purposes, while not hav<strong>in</strong>g any <strong>of</strong> <strong>the</strong><br />

domestic rights given specifically to m<strong>in</strong>isters.<br />

12 Baker & McKenzie

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