The Council of Ministers plans and implements government policy. The Monarch and the Council of Ministers together are called the Crown. Most ministers also head government ministries, although ministers-without-portfolio exist. The ministers, collectively and individually, are responsible to the States General (parliament). Unlike the British system, Dutch ministers cannot simultaneously be members of parliament.

The Council of State is a constitutionally established advisory body to the government that consists of members of the royal family and Crown-appointed members generally having political, commercial, diplomatic, or military experience. The Council of State must be consulted by the cabinet on proposed legislation before a law is submitted to the parliament. The Council of State also serves as a channel of appeal for citizens against executive branch decisions.

The Second Chamber consists of 150 members, elected directly for a 4-year term--unless the government falls prematurely--on the basis of a nationwide system of proportional representation. This system means that members represent the whole country--rather than individual districts as in the United States--and are normally elected on a party slate, not on a personal basis. There is no threshold for small-party representation. Campaigns are relatively short, lasting usually about a month, and the election budgets of each party tend to be less than $1 million. The electoral system makes a coalition government almost inevitable. The last election of the Second Chamber was in January 2003.

The First Chamber is composed of 75 members elected for 4-year terms by the 12 provincial legislatures. It cannot initiate or amend legislation, but its approval of bills passed by the Second Chamber is required before bills become law. The First Chamber generally meets only once a week, and its members usually have other full-time jobs. The current First Chamber was elected following provincial elections in May 2003.

The Christian Democratic Appeal was formed from the merger of the Catholic People's Party and two Protestant parties, the Anti-Revolutionary Party and the Christian-Historical Union. The merger process, begun in the early 1970s to try to stem the tide of losses suffered by religiously based parties, was completed in 1980. The CDA supports free enterprise and holds to the principle that government activity should supplement but not supplant communal action by citizens. On the political spectrum, the CDA sees its philosophy as standing between the "individualism" of the Liberals and the "statism" of the Labor Party. CDA has 44 seats in the current Second Chamber, more than any other party.

The Labor Party (PvdA), a classic European Social Democratic party, is left of center. It currently has 42 seats in the Second Chamber. Labor's program is based on greater social, political, and economic equality for all citizens, although in recent years the party has begun to debate the role of central government in that process. Although called the Labor Party, it has no formal links to the trade unions.

The Liberal Party is "liberal" in the European, rather than American, sense of the word. It thus attaches great importance to private enterprise and the freedom of the individual in political, social, and economic affairs. The VVD is generally seen as the most conservative of the major parties. It currently has 28 seats in the Second Chamber. The VVD has previously been the junior partner in two governing coalitions with the CDA from 1982-89.

The Liberal Democrats 66 (D66) party was founded in 1966 primarily for the purpose of promoting a drastic reform of the rigid, antiquated Dutch political system. Political reform still is its principal driving force. The partyís electoral fortunes have fluctuated widely. For a long time, its success was closely tied to the popularity of D66 founder, leader and former Foreign Minister Hans van Mierlo, who retired in 1998. Since then, the party steadily lost electoral support. In January 2003 elections, it only won six seats. Despite its relatively small size, D66 has invariably been a reliable, intellectually sound partner in successive coalition governments. D66 is a staunch advocate of a strong European Union, although it also subscribes to the importance of NATO and the transatlantic relationship in Dutch foreign policy.

The Dutch Opium Act punishes possession, commercial distribution, production, import, and export of all illicit drugs. Drug use, however, is not an offense. The act distinguishes between "hard" drugs that have "unacceptable" risks (e.g., heroin, cocaine, Ecstasy) and "soft" drugs (cannabis products). One of the main aims of this policy is to separate the markets for soft and hard drugs so that soft drug users are less likely to come into contact with hard drugs. The sale of a small quantity (under five grams) of soft drugs in "coffeeshops" is tolerated, albeit under strict conditions and controls. The United States continues to disagree with this aspect of Dutch drug policy. Overall, the Health Ministry coordinates drug policy, while the Ministry of Justice is responsible for law enforcement. Matters relating to local government and the police are the responsibility of the Ministry of Interior. At the municipal level, policy is coordinated in tripartite consultations among the mayor, the chief public prosecutor, and the police.

The Netherlands has a wide variety of demand-reduction and "harm"-reduction programs reaching about 80% of the countryís 26,000-30,000 opiate addicts. The number of opiate addicts has stabilized over the past few years, with the average age rising to 40, and the number of overdose deaths related to opiates stabilizing at between 30 and 50 per year.

The Government made counterterrorism a priority issue for its EU presidency during the second half of 2004. In August 2004, the Act on Terrorist Crimes, implementing the 2002 EU framework decision on combating terrorism, became effective. The Act makes recruitment for the Jihad and conspiracy with the aim of committing a serious terrorist crime separate criminal offenses. In June 2004, the Dutch for the first time successfully convicted two individuals of terrorist activity allowing use of intelligence of the General Intelligence and Security Service (AIVD) as evidence. In 2004, the Government created a National Counterterrorism Coordinatorís Office to streamline and enhance Dutch counterterrorism efforts. The Dutch have taken a leading role, particularly in the European Union, to establish financial protocols to combat terrorism. They have also donated to the IMF to provide assistance to countries that lack the wherewithal to implement some of these measures immediately. They have taken steps to freeze the assets of individuals and groups included on the UNSCR 1267 Sanctions Committeeís consolidated list.

The Netherlands is an active participant in the Container Security Initiative at Rotterdam, one of Europeís busiest ports. The Dutch have also installed radiological portal monitors at Rotterdam, in partnership with the Department of Energyís Megaport/Second Line of Defense initiative. The government also permitted U.S. CBP Immigration Liaison Officers to return to Schiphol Airport to assist with US-bound passenger screening (the program is now known as the Immigration Assistance Program). In January 2005, the U.S and Netherlands agreed to develop an International Registered Travelers program to facilitate travel between Schiphol Airport and JFK.

The Netherlands' embassy in the U.S. is at 4200 Linnean Avenue, NW, Washington, DC 20008; tel: 202-244-5300; fax: 202-362-3430.