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The Dutch political scene is one of consensus, a long standing solution to sharp international social divisions between Catholic and Protestants, and an ancient need to unite against more powerful neighbours and the against the formidable North Sea. Government for more then forty years has been through a series of shifting coalitions and compromises, which, for the Netherlands, seems always to be necessary. The post-war created the general agreement that all should share in the increasing wealth, a national benchmark goal that has led to the most extensive welfare system in Western Europe. This system costs something near to 7% of the GNP. Just how to adequately and fairly pay for this is the central preoccupation of Dutch politics.

Dutch prosperity is based on efficient industry, restructured in the 1980's, natural gas, rich and intensively farmed land, and trade, around 60% of GDP consists of exports and imports, making the Netherlands one of the most trade-dependent economies in Europe. Wheat Germany has been by far the largest trade partners, a position that has grown substantially because of Germany's unification. Chemicals, electronics and food processing are prominent. The Netherlands is also the headquarters of three of the world's largest multinationals, Unilever, Philips, and Royal Dutch Shell. Much of Dutch agriculture is still small-scale but it is also highly efficient. 60% of the produce is exported and the country is more than self sufficient in food.

The need to defend and reclaim land from the sea has long made the Dutch environmentally conscious. The chemicals industry and agricultural methods have led to serious ground pollutions. The National Environment Pollution Plan (NEPP) on which a government fell in 1989 and which was finally agreed in 1990, aims to reduce pollution by as much as 75% over the next 15 years largely on a 'polluter pays' basis. As energy is important, Holland is in the forefront of global alternative energy research and is making technological strides in the fields of both wind and tidal energy collection.

Dependency on trade and experience with consensus politics has made the Dutch natural leaders in EU developments. The Netherlands is keen on much greater political and economic integration and is likely to continue to play an important role as conciliator in EU affairs.

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