Constitutional monarchy with a parliamentary system
The Monarch is the head of state of the Kingdom of the Netherlands and reigns over its three partner countries: the Netherlands in Europe, the Netherlands Antilles (comprising Bonaire, Curaçao, Saba, St Eustatius and St Maarten) and the island of Aruba.

The Netherlands Antilles and Aruba each have a governor representing the Monarch. The Council of Ministers for the Kingdom, which consists of the Dutch Cabinet and ministers plenipotentiary for the Netherlands Antilles and Aruba, serves as a cabinet for the whole Kingdom. Kingdom-wide legislation is proposed by the Council of Ministers for the Kingdom and passed by the Dutch Parliament (or States General).

The administrative relationship between the Netherlands and the Netherlands Antilles and Aruba is set out in the Charter for the Kingdom of the Netherlands. The Charter, which was drawn up in 1954, is the highest constitutional instrument, even taking precedence over the Constitution. It states that the Netherlands, the Netherlands Antilles and Aruba are equal partners in the Kingdom, which may be regarded as a kind of federation.

Constitution
The Dutch system of governance is based on the Constitution, which sets out the principles underlying:
-the monarchy
-representative democracy
-the rule of law (including fundamental rights)
-decentralisation and unity.

Monarchical governance
The Monarch and ministers constitute the Government. The Netherlands has been a constitutional monarchy with a parliamentary system since the Constitution was radically revised in 1848.

Constitutional monarchy means that the Constitution stipulates the powers of the hereditary Monarch. It also sets out the division of powers between the Monarch and other institutions of state. The ministers are accountable to Parliament for the Government’s actions, while the Monarch has no political responsibilities and is not accountable to Parliament.

The Monarch’s many official duties include delivering the annual Speech from the Throne, which sets out the Government’s legislative plans for the parliamentary year to come. It always takes place at the State Opening of Parliament on the third Tuesday in September, which is known as Prinsjesdag.

The Monarch also plays an important role in forming new governments. After a general election, she meets with the leaders of the parliamentary parties, the speakers of both chambers of Parliament and the vice-president of the Council of State. Then, acting on their advice, she appoints a senior political figure (the informateur) to find out, if necessary, which parties are willing to form a coalition. The parties intending to form a coalition draw up an agreement setting out plans for a four-year term in office. The Monarch will then appoint one of the coalition party leaders as formateur and instruct him or her to form a government. The new ministers are appointed by royal decree and sworn in by the Monarch.

In addition to these formal duties, the Monarch meets regularly with the Prime Minister, other ministers and state secretaries, and prominent figures in economic and cultural life.

The Cabinet and the Government
The ministers together make up the Cabinet, presided over by the Prime Minister. The Cabinet’s duties include the day-to-day business of governance, preparing legislation and putting it into practice, overseeing local government and maintaining international relations. The Cabinet appointed in 2003 has 16 ministers; most of their areas of activity are described in this booklet. The ministers are assisted by state secretaries, who fulfil some ministerial duties but are not members of the Cabinet. For practical purposes, however, state secretaries are members of the Government.

The Council of State
The Council of State is the Netherlands’ oldest state institution. Founded by Emperor Charles V in 1531, it is still the Government’s chief advisory body. The Government has to seek the Council of State’s advice on all proposed bills, orders in council and legislation for parliamentary ratification of international agreements, although the Government is not bound to follow its advice. The Council of State is presided over by the Monarch. It has a vice-president and up to 28 members known as State Councillors. In addition, up to 50 Extraordinary Councillors can be appointed.

Ordinary State Councillors are persons recognised as having rendered outstanding service in public life. They are appointed by the Monarch on the recommendation of the Minister of the Interior and Kingdom Relations and with the consent of the Minister of Justice. Although they are appointed for life, in practice they retire at the age of 70. The vice-president of the Council of State is responsible for its day-to-day management. The heir to the throne takes a seat in the Council on reaching the age of 18. The Council of State exercises the royal prerogative if there is no successor or regent on the death of the Monarch. It also serves as the Netherlands’ highest administrative tribunal.

The Court of Audit
The Court of Audit oversees the Government’s financial management. It audits the spending and receipts of individual ministries, semi-state enterprises and other publicly funded bodies, taking account of both regularity and efficiency. The Court of Audit has three members, one of whom is appointed president by the Government. All three are appointed for life. The Court of Audit’s annual report is submitted to the Government and to Parliament, after which it is published.

The National Ombudsman
Since 1982, the Netherlands has had a National Ombudsman. Any individual citizen may ask the Ombudsman to investigate the conduct of a government body. The Ombudsman may also launch his own investigations. At the end of an investigation, the Ombudsman sends his conclusions to the parties concerned, who then have a chance to respond. Once they have done so, the Ombudsman publishes a report stating whether, in his opinion, the public body investigated acted improperly. The report may also make recommendations. The National Ombudsman is appointed for six years by the House of Representatives. He works independently and reports to the House of Representatives.

Parliament
All Dutch citizens aged 18 or over may vote in elections for the House of Representatives, for which they may also stand as candidates. Parliament, known as the “States General”, consists of two chambers: the Senate (the upper chamber), with 75 members, elected by the provincial councils; and the House of Representatives (the lower chamber), with 150 members. All Acts of Parliament have to be passed by both chambers of Parliament. The Monarch, Government and Parliament all take part in the legislative process.

Parliament may deliberate and take decisions only if over half its members are present. Most decisions are taken by majority vote. The Government has executive power but is accountable to Parliament. Ministers must have the confidence of Parliament if they are to govern. At any time in a Government’s term of office, the House of Representatives may pass a motion of no confidence. For its part, the Government has the power to dissolve the House and call a general election.

Parliamentary scrutiny
The two chambers of Parliament have four rights enabling them to check the power of the Government:
-the right to set a budget: Parliament may approve or reject the annual budget presented by the Government;
-the right of interpellation: any member of Parliament may propose a debate with a minister. Requests for interpellation are rarely denied;
-the right to put questions to ministers and state secretaries: most questions are put in writing. In the House of Representatives, there is also a weekly Question Time, during which members can put questions orally and have them answered orally. All questions must be answered. A minister may refuse to provide information requested only if to do so would harm the interests of the state;
-the right of inquiry: Parliament may launch inquiries independently of the Government by setting up parliamentary commissions of inquiry. Such commissions have the power to require persons to appear before them and give evidence under oath.

In addition, either chamber of Parliament may adopt motions independently to express its opinion on a subject. Such a motion must be backed by at least five members to come to a vote, and even if it is adopted, the Government is not obliged to implement it. But a motion of no confidence will force the Government to resign.

The House of Representatives has two further rights: the right to amend legislation and the right to propose it. The House may amend bills during the legislative process, and members may propose bills of their own, either individually or as a group.

Members of Parliament enjoy parliamentary immunity. They may not be prosecuted for anything they say in either chamber, in a parliamentary committee meeting, or in a document submitted to Parliament.

Political parties
The Netherlands has many political parties, a state of affairs encouraged by the electoral system. The House of Representatives is elected by proportional representation, with parties having to win only 0.66% of the national vote to gain one seat. Political parties have to fund themselves and do so mainly by charging membership fees. They may receive donations from businesses, which they have to declare.

Three tiers of government
The Netherlands has three tiers of government: central, provincial and municipal. Central government concerns itself with issues of national interest. The provinces and municipalities are tiers of local government. In addition, there are water boards, responsible for local water management.

Provincial and municipal authorities may pass independent bylaws, but they must conform to national legislation. They are also required to collaborate in implementing central government measures. In the case of municipalities, this also applies to measures adopted by the province in which they are situated.

Provinces
The Netherlands is divided into twelve provinces. Provincial authorities are responsible for environmental management, spatial planning, energy supply, social work, sport and cultural affairs. Each provincial authority is made up of a provincial council, a provincial executive and the Queen’s Commissioner.

The members of the provincial council are elected for four years by voters resident in the province. The provincial council then appoints some of its number to serve a four-year term as the provincial executive. The Queen’s Commissioner is appointed by the Government for six years, after which s/he may be reappointed. S/he presides over both the provincial council and the provincial executive.

Municipalities
The Netherlands is made up of 483 municipalities (in 2004). Municipal authorities are responsible for water supply, traffic, housing, public-sector schools, local social services and health care, sport, recreation and culture. Each municipal authority consists of a council, a mayor and an executive (comprising the mayor and aldermen).

Municipal authorities are subject to scrutiny by the province and central government, though in practice this power is used sparingly. Each municipal council appoints several aldermen from among its members. The mayor is appointed by the Government for six years, after which s/he may be reappointed.

The mayor presides over both the municipal executive and the council. The executive implements decisions taken by central government and the provincial executive. Municipal councils are elected by local residents for a four-year term. Foreign nationals who have been legally resident in the Netherlands for at least five years are also entitled to vote in municipal elections.

Water boards
The water boards are one of the oldest democratic institutions in the Netherlands. Water management is very important, since a quarter of the Netherlands lies below sea level.

Like central government, provinces and municipalities, water boards are public bodies. They are charged with protecting the country from water. Their tasks include constructing and maintaining dams, dykes and locks, controlling water flows and levels, and maintaining water quality. Water board executive councils are elected by property owners in their localities. But the chairman of the executive committee is appointed by the Government.

The rule of law
Dutch law contains basic rules to prevent government from exercising power arbitrarily. All government action must conform to the law.

Other basic rules are the fundamental rights contained in the Constitution, Article 1 of which says: "All persons in the Netherlands shall be treated equally in equal circumstances. Discrimination on the grounds of religion, belief, political opinion, race or sex or on any other grounds whatsoever shall not be permitted.” The whole first chapter of the Constitution is devoted to fundamental rights: civil and political rights protecting citizens from government interference in their private lives and social rights imposing positive obligations on government.

The principle of the separation of powers is also a feature of the rule of law. It has applied in the Netherlands since the Constitution was radically reformed in 1848. One of its manifestations is an independent judiciary.

The judicial system
Civil and criminal justice is administered in nineteen district courts, five courts of appeal and the Supreme Court of the Netherlands. The judicial system has three levels. Cases are heard first by a district court. Once the district court has given judgment, both the prosecution and defence may appeal against it in the court of appeal.

The court of last resort is the Supreme Court, which deals with appeals “in cassation”, meaning that it looks not at the facts but at whether the law has been applied properly. All courts in the Netherlands are presided over by judges appointed for life in order to ensure their independence. In practice, however, they retire at 70.