The Netherlands is politically stable and provides an excellent business environment. Coalitions are the norm, and the prolonged negotiations to form a government after the last elections did not harm overall political stability. The Government leaded by Mark Rutte resigned in January due to a child welfare fraud scandal, just two months before the elections held on March 2021. Those elections gave the victory to Rutte again, who is going to form a coalition government that will maintain overall political stability. Businesses face a few operational and security threats. 

The resignation of the President and the Ministers in January 2021 was due to the political liability they had in a fraud that wrongly accused thousands of families of having illegally rececived aids to pay for child care. The damaged families (mainly immigrant families with little resources) were obliged to pay back the aids recieved, something that ruin their economic welfare. Elections held in March 2021 did not damaged the electoral result of Mark Rutte and his party, that has won the elections for the forth time. The second place in the elections has been for the socialdemocracy party D66, replacing the far right party PVV. The most probable scenario, given that Rutte does not have absolute majority, is that he will form a coalition of parties to govern. 

The economic situation of the Netherlands have worsened as a consequence of the pandemic, presenting a reduction of GDP of -3,8% in 2020. The economy was mainly shocked by the lack of foreing trade, a sector that is crucial for the Dutch economy as the country is the "door" to Central Western Europe, thanks to the magnitude of the ports and airports. Toghether with the fall in the foreing trade, private consumption and investment have been reduced. However, previsions for 2021 are catiously positive: foreing trade is expected to growth, and trade with the UK (key importer country for Netherlands) is going to be maintained thanks to the agreement reached with the EU. Private consumption and investment will also recover thanks to the governmental helps and programs of recovery (EUR 12.5 billion, 1.7% of GDP), and thanks to the tax relief. Accordingly, the forecast for growth made by the IMF predicts the Dutch economy to growth by 3,5%.

COVID - 19 daily infections predicted by the IHME foresee a decrese in the spread of the virus during the summer, being already very low. This decreasing trend is due to the advanced state of the vaccination campaign (37% of the population is arleady vaccinated with at least one dose) In reponse to the positive evolution of the pandemic, the Government has relieved restrictions for the summer: From 5 June, all indoor public spaces will reopen except for discotheques and nightclubs, and a distinction will be made between those where people remain seated and those where there is a flow of visitors. In the first case, the maximum capacity will be 50 people inside and another 50 outside, except for venues with a capacity for more than a thousand people, where a maximum of 250 people can be accommodated, all of them keeping a distance of one and a half metres.

The Netherlands is politically stable. Although the rise of the far-right Party for Freedom (PVV) has made coalitions much more difficult to form and maintain, all of the major parties pursue business-friendly policies. Foreign investment is welcomed.

The Netherlands is considered a Full Democracy in the 2020 Democracy Index, developed by The Economist Intelligence Unit (EIU), where the country ranks 11 out of 167 countries scored.

The country ranks 8 at the 2020 Human Development Index developed by the United Nations Development Programme.

The Netherlands is usually a favorable business and investment destination, but there is currently a heightened risk of disruption caused by the coronavirus disease 2019 (COVID-19) virus outbreak and related emergency measures. Infrastructure is of a very high standard, with reliable links to neighboring markets. The high cost of labor is a minor deterrent for some businesses, but productivity and quality are correspondingly high. Industrial action is relatively rare and corruption risks are likely to remain very low. The favorable trade agreement that the EU has reached with the UK will be positive for the business activity in the country, as exports to the UK represent 3,3% of the country's value added. 

The country's road network is very good, dense, and free. However, roads are often gridlocked due to a large number of trucks on major roadways.

Drivers are advised to be aware of the numerous cyclists who use the country's roadways, particularly in urban centers, and to be cautious of cyclists traveling in the opposite direction of traffic. Driving while intoxicated is severely punished. Fines resultant from traffic violations must be paid immediately. If you do not have cash with you, police officers will not hesitate to take you to the closest ATM.

Public transportation is very well developed in the country and has priority over individual drivers. However, trains are often late. Trams have priority on roadways and do not hesitate to take it.

Overall, The Netherlands ranks 42 out of 190 countries scored at the 2020 Doing Business Index by the World Bank and 8 out of 198 at the 2020 Corruption Perception Index by the Transparency International Organization.

The Netherlands is a safe destination for investors. Businesses and business personnel face a few security concerns. Petty crime is the most likely security threat to affect foreign companies or personnel, particularly in urban areas. However, in common with most other Western European countries, the threat posed by terrorism is low but real.

Crime rates, especially for violent crime, are generally very low in the Netherlands and they are no deterrent to foreign investment. According to recent figures from the Dutch Ministry of Justice, the overall crime rate is likely to drop over the coming years. However, cybercrime is a growing threat in the Netherlands, including malware, ransomware attacks, and the targeting of networked systems. The Dutch police force functions effectively and is comparatively well resourced overall.

The probability of all forms of larger demonstrations has risen due to the unpopular measures of lockdown. Anti-Islam and anti-immigrant sentiment, fuelled and exploited by the Party for Freedom (Partij voor de Vrijheid: PVV) or the Forum for Democracy (Forum voor Democratie: FvD), has led to an increase in protests with the potential to turn violent. The Dutch branch of PEGIDA also stages smaller protests. Overall, the risk of violent and disruptive protests in the Netherlands is lower than in neighboring countries. 

The Netherlands has close political and economic ties with all of its neighbors, which are also partners in the European Union and allies in NATO, rendering the risk of inter-state war extremely low. The country's NATO membership entails the involvement of Dutch military forces in NATO/US-led international security operations, including currently in Afghanistan, where the Dutch government has committed to contribute to NATO's Resolute Support Mission until 2021, and in Lithuania, where around 270 military personnel support the multinational battlegroup of NATO's enhanced Forward Presence.

The Netherlands faces a risk of low-capability and more sophisticated terrorist attacks launched by lone actors or small cells directly linked to non-state militant groups such as the Islamic State or inspired by their ideology. Soft targets, such as transport hubs, bars, and restaurants, music and sports venues, shopping centers, or public spaces near tourist attractions, are likely to be most at risk. However, because lone actors often launch attacks near their homes, the risk of a terrorist attack is not limited to larger cities. Aside from civilians, other prime targets include individual members of the Dutch security forces or politicians.

Overall, The Netherlands ranks 21 out of 163 within the 2020 Global Peace Index by the Institute for Economics and Peace.

The Netherlands is currently among the most cyber-attacked countries in the world according to Kaspersky cyber threat map.

No vaccinations are required to enter the country.

The Netherlands ranks 3 out of 195 within the 2019 Global Health Security Index, a project of the Nuclear Threat Initiative (NTI) and the Johns Hopkins Center for Health Security (JHU), developed with The Economist Intelligence Unit (EIU).

Coastal regions and zones situated below sea level are particularly vulnerable to flooding.

If you plan to visit the Netherlands, stay informed by the Crisis Netherland.