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| :: History |
Under Charles V, Holy Roman Emperor, leader of the Burgundy empire and king of Spain, the region was part of the Seventeen Provinces of the Netherlands, which also includes most of present-day Belgium, Luxembourg, and some land of France and Germany. In 1568 the Eighty Years' War started after the entire population had been condemned to death by the Holy See and confirmed by the king. In 1579, the northern half of the Seventeen Provinces declared itself independent and formed the Union of Utrecht, which is seen as the foundation of the modern Netherlands. Philip II, the son of Charles V, was not prepared to let them go that easily. It would not be until 1648 that Spain would recognise Dutch independence.
After gaining formal independence from the Burgundy-Spanish Empire under King Philip IV, the Dutch grew to become one of the major seafaring and economic powers of the 17th century during the period of the Republic of the Seven United Netherlands. In the era, referred to as the Dutch Golden Age, colonies and trading posts were established all over the globe.
Many economic historians regard the Netherlands as the first thoroughly capitalist country in the world. In early modern Europe it featured the wealthiest trading city (Amsterdam) and the first full-time stock exchange. The inventiveness of the traders led to insurance and retirement funds as well as such less benign phenomena as the boom-bust cycle, the world's first asset-inflation bubble, the tulip mania of 1636-1637, and according to Murray Sayle, the world's first bear raider - Isaac le Maire, who forced prices down by dumping stock and then buying it back at a discount.
After briefly being incorporated in the First French Empire under Napoleon, the Kingdom of the Netherlands was formed in 1815, consisting of the present day Netherlands, Belgium and Luxembourg. In addition, the king of the Netherlands became hereditary Grand Duke of Luxembourg. Belgium rebelled and gained independence in 1830, while the personal union between Luxembourg and the Netherlands was severed in 1890 as a result of ascendancy laws which prevented Queen Wilhelmina from becoming Grand Duke.
The Netherlands possessed several colonies, most notably the Dutch East Indies (now Indonesia) and Suriname (the latter was traded with the British for New Amsterdam, now known as New York). These 'colonies' were first administered by the Dutch East India Company and the Dutch West India Company, both collective private enterprises. Three centuries later these companies got into financial trouble and the territories in which they operated were taken over by the Dutch government (in 1815 and 1791 respectively). Only then did they become official colonies.
During the 19th century, The Netherlands was slow to industrialise compared to neighboring countries, mainly due to its unique infrastructure of waterways and reliance on wind power. After remaining neutral in World War I, it became a member of the allied forces during World War II in which over 100,000 Dutch Jews were murdered in the Holocaust of World War II, along with significant numbers of Dutch Roma (gypsies). After the war, the Dutch economy prospered again, being a member of the Benelux (Belgium, the Netherlands and Luxembourg) and European Economic Community unions. The Netherlands was among the twelve founding members of the North Atlantic Treaty Organisation (NATO) and among the six founding members of the European Coal and Steel Community, which would later evolve into the European Union.
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