Dutch Republic: Encyclopedia II - Dutch Republic - History

Dutch Republic - History

Before 1581, the area of the Low Countries consisted of a number of duchies, counties, and independent bishoprics, not all of them part of the Holy Roman Empire. Today that area is divided between the Netherlands, Belgium, Luxembourg and parts of France and Germany. The Low Countries in the 16th century roughly corresponded to the Seventeen Provinces covered by the Pragmatic Sanction of 1549 of Holy Roman Emperor Charles V. See Seventeen Provinces, for history and links to the earlier history of each of the provinces. For the southern provinces that did not secede from Spain in 1581, see the Spanish Netherlands.

Through marriage, war or sale, these states all ended up in the hands of the Habsburg emperor Charles V and his son, king Philip II of Spain. In 1568, the Netherlands, led by William of Orange, revolted against Philip II because of his efforts to modernize and centralize the devolved medieval government structures of the provinces, high taxes, and persecution of Protestants by the Catholic church. This was the start of the Eighty Years' War.

In 1579, a number of the northern Netherlands signed the Union of Utrecht, in which they promised to support each other in their defense against the Spanish army. This was followed in 1581 by the Oath of Abjuration, the declaration of independence in which the provinces officially deposed Philip II.

The United Provinces first tried to choose their own lord, and they asked the Duke of Anjou (sovereign from 1581-1583) to rule them. Later, after the assassination of William of Orange (July 10, 1584), Henry III of France and Elizabeth I of England both declined the offer of sovereignty. However, the latter agreed to turn the United Provinces into a protectorate of England (Treaty of Nonsuch, 1585), and sent the Earl of Leicester as governor-general. This was not a success, and in 1588 the provinces became a Republic.

From an economic perspective, the Republic of the United Provinces completely out-performed all expectations; it was a surprise to many that a nation, not based on the church or on a single royal leader, could be so successful. This time period is known in Holland as the Golden Age. The free trade spirit of the time — which some would argue was the Protestant spirit of the time — received a strong augmentation through the development of a modern — much better functioning — stock market in the Low Countries. The introduction to the Netherlands of this financial institution can be attributed to the Walloons, the French speaking Belgians. They established a stock market first in Rotterdam and later in Amsterdam. In Amsterdam, the modernization of the financial institution took place, and the oldest stock market based on principles still in place in our world today is found here. While the banking system evolved in the Low Countries, it was quickly incorporated to the well-connected English, stimulating the English economic output.

The Republic of the United Provinces was officially recognized in the Peace of Westphalia (1648), and lasted until French revolutionary forces invaded in 1795 and set up a new republic, called the Batavian Republic, which would be replaced by the French-controlled Kingdom of Holland.

The Netherlands regained independence from France in 1813. In the Anglo-Dutch Treaty of 1814 the names "United Provinces of the Netherlands" and "United Netherlands" are used. In 1816 it was joined with Belgium to become the United Kingdom of the Netherlands, in order to create a strong buffer state north of France. After Belgium became independent, the state finally became known as the Kingdom of the Netherlands, as it remains today.

Adapted from the Wikipedia article "History", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki