Economic Policy and Politics in the Netherlands

Abstract

This chapter describes the politics of Dutch economic policy. After highlighting the main characteristics of the Dutch economy, the authors provide an overview of the evolution of economic policy since the 1980s. Whereas fiscal policies were politically and economically important in the 1970s and 1980s, structural reforms have gained more ground in economic policy since the end of the twentieth century. The authors zoom in on two such reforms, namely of the housing market and the pension system, which are exemplary for contemporary Dutch economic policy. Building on a review of literature on the politics of economic policy, they conclude the chapter by identifying a number of directions for future research. In particular, they highlight the implications of some recent phenomena in the Netherlands, such as increasing expenditure on health care, the challenges in the housing market, the ageing population, and the green transition.