Just like the rest op Europe, since the end of 2008 the Netherlands has been suffering from the economic crisis and recession. The government has already announced various measures to keep the damage within its limits and where possible to stimulate the economy.

For example:

• The option to reduce working hours (up to 1 July 2010).
• Extensions of credit facilities (including the ‘Guaranteed credit’ and microcredit).
• Reductions of taxation and social security contributions
• Stimulation of exports with an extension of the Prepare2start scheme (see: www.evd.nl)

The cabinet is also looking at fiscal options, for example reducing VAT and the rates for corporation tax.

Purchasing power will fall in the Netherlands in 2010 by 0,25% compared with 2009. This is apparent from a forecast from the Central Planning Bureau (CPB). The economy will grow by 1,5% (in 2009 the economy shrank by 4%). The CPB expects that collective wage agreement will rise in 2010 by an average of 1,25%. The government budget deficit will amount to 6,1% of het gross domestic product (forecast 16 February 2010). Inflation will in 2010 work out at an average of 1,0%.

For the first time a forecast is also presented for 2011. For that year the planning bureau now anticipates growth of het GDP of 2%. The average unemployment in 2011 is the same as that for 2010: 6,5%. The budget deficit for 2011, is stimulated at 4,&% of the gross domestic product.

Table: key data for the Netherlands, 2008-2011 (changes per year in %)

Source CPB 2010

Country and Government

The Netherlands has a total population of 16.58 million inhabitants (January 2010) and is governed by a monarchy. The ministers are the people's representatives with respect to the actions of the government. The head of state does not bear political responsibility and can therefore not be held politically accountable by the parliament. The Netherlands has 12 provinces, each with its own local authorities.

Location

Most of the major industries in the Netherlands are situated in the country's western regions. The Port of Rotterdam is one of the biggest ports in the world. A new railway line, the 'Betuweroute', will ensure fast and efficient transport from the port to the European hinterland. Utrecht is a central traffic junction and Schiphol, the Dutch airport, is growing at a rapid rate. The Low Lands, as the Netherlands is also known, play an extremely important role in the functioning of the transport artery.

Export

The country's perfect location and healthy financial policy have helped to ensure that the Netherlands has grown into an important import and export nation. The country's most important industrial activities include oil refineries, chemicals, foodstuff processing and the development of electronic products. Germany, Belgium-Luxembourg, Great Britain, France and the United States are the country's main import partners. All the aforementioned countries, including ltaly, are also the country's most influential export partners, In January 2009 the export volume was 14% less than a year earlier. The volume of Imports was also 14% down.

Finances

The Euro monetary unit was officially introduced on 1 January 2002. The Nederiandse Bank is responsible for the  money flow in the Netherlands. One of the government's most important objectives is to keep prices stable and thereby to contain inflation.
Dutch banks offer an extensive range of financial services: some are specialized, while others offer an extremely wide range of services Dutch banks are reliable: most financial institutions use organizational structures that prevent the possibility of entanglement of interests.

Right to establish a business

Foreign companies wishing to set up shop in the Netherlands can set up the existing foreign legal entity in the country within the need to convert it into a Dutch legal entity. They will however de required to deal with both international and Dutch law. All establishments in the Netherlands must be registered with the Chamber of Commerce.