Introduction to the Netherlands and the Dutch public sector

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Kingdom of The Netherlands

Constitutional Monarchy ­ King Head of State ­ Constitution ­ Kingdom:

• The Netherlands, including municipalities of Bonaire, St Eustatius and Saba on Netherlands Antilles

• Countries: Aruba, Curacao and St Maarten on Netherlands Antilles

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Role of King Willem-Alexander­ Head of State­ Signs laws with the responsible minister (ceremonial

function)

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Basis of Dutch Democracy

TRIAS POLITICA (absolute separation of powers ­ Government governs ­ Parliament verifies ­ Judges are independent

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Representative Democracy

­ Dutch vote for the parliament, the provincial council, the municipal council and the European Parliament

­ Each party gets the number of seats that corresponds to its share of the votes received

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Major Dutch Political Parties

Name Seats in House of Representatives

Liberal Party 41 -----------------------Labour Party 38 -----------------------Party for Freedom 15Socialist Party 15Christian Democrats 13Liberal Democrats 12Small parties (5) 16

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Dutch public law

­ National government, provinces and municipalities all have their own responsibilities and sphere of influence

­ Pressure groups can oppose bylegal action, lobbying and media attention

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Decentralised unitary state

3 major principles:­ Autonomy: municipalities have their own

regulations­ Shared governance: national regulations

give opportunity to implement specific measures at the local level

­ Unity of policy: local authorities can’t oppose national policy

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Government system

4 tiers + 1:

­ Central government ­ Provincial government ­ Waterboards ­ Municipalities ­ + European Union

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Government system

Three branches of government: ­ Legislative: Second (150) and First Chamber (75) (House of Representatives and Senate) ­ Executive: Cabinet of ministers and Prime Minister (11

Ministries) ­ Judicial: Supreme Court appointed by the Crown,

Divisionary Courts

­ State institutions ­ Council of State ­ National Court of Audit ­ National Ombudsman

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Dutch government

­ 11 ministries: 109,000 employees­ 147 autonomous administrative

authorities: 39,000 employees

­ 12 provinces: 11,000 employees­ 390 municipalities: 155,000 employees

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Political responsibility

­ A minister is responsible for the formulation and implementation of public policy

­ Which refers to the actions and measures of his department and its executing authorities

­ But not to the actions of autonomous administrative authorities (for example Employee Insurance Agency, Agency for Asylum Seekers)

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12 Dutch provinces

Legislative- Elected representatives at the Provincial State- Every four years elections- Provincial States elect the Senate

Executive- King´s Commissioner (appointed by the Crown)- Deputies (selected by the coalition)

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Dutch provinces

Main Tasks ­ Responsible for regional development, environment

and public transport (tenders)­ Overseeing policy and finances of municipalities and

waterboards

Finances­ They can impose taxes (limited)­ Their revenues come from national government and

EU funds, but not from municipalities

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Threats to Dutch provinces

­ Less democratic legitimacy: provincial elections attract less voters (no social economic issues)

­ Undermining of power position: the rise of city regions (cooperation between municipalities, for example Rotterdam-The Hague)

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Dutch municipalities

Legislative- Elected representatives- Every four years elections

Executive- Mayor (appointed by the Crown)- Alderman (selected by the coalition)

03-05-2023

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Dutch municipalities

­ Merging of small municipalities into large ones (1975: 842, now: 390)

­ Average size: 37,000 people

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Dutch municipalities: finances

- The total budget of all Dutch municipalities: approx. 50 billion EURO

­ For 80-85% financed by national government­ For the execution of tasks resulting from

national policy, municipalities are mostly compensated by contributions from national funds:• Ear-marked funds• General grant

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Dutch municipalities: finances

- Ear-marked funds, these funds cannot be reallocated: social services, primary education and urban regeneration

­ General grant, the municipal council is free to decide on its precise allocation. To ensure equal level of services with an equal level of local taxes/charges for all municipalities.

­ Local taxes: property, dog ownership, tourists, land, administrative fees and charges

­ Various: municipal property, European subsidies

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Revenue sources of municipalities

03-05-2023

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Comparison major cities and ministries

Amount of employees:

­ Municipality of Amsterdam: 13,000­ Municipality of Rotterdam: 13,000­ Ministry of the Interior: 7,000 ­ Ministry of Justice: 30,000­ Ministry of Finance: 1,640 (without TO)­ Tax Office: 32,000

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Checks and balances on four levels

­ European law stands above Dutch law­ Central Dutch government can suspend

decisions by a municipality­ Local plans, which regulate how the land in

each particular area may be used and what may be built there, must be consistent with provincial structure plans

­ A municipality’s budget must be approved by the provincial authorities

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Relations between the 3 tiers

­ No hierarchy between the 3 levels of government ­ Hierarchy in laws (central laws precede over provincial and local edicts) ­ Principle of decentralisation of tasks to local level

unless impossible ­ Limited taxes at local level, most of funds received

through general funding by central government

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Relations between the 3 tiers

In practice: ­ Distrust at central level in execution ­ General funding accounts for 80-85% of

budget for municipalities ­ Decentralisation of tasks, yes. But with

extensive accounting and checks from central government

­ Code for interadministrative relations