One of the Low Countries, the Netherlands did not have a unified history until the late 15th cent. The region west of the Rhine formed part of the Roman province of Lower Germany and was inhabited by the Batavi; to the east of the Rhine were the Frisians. Nearly the entire area was taken (4th–8th cent.) by the Franks, and with the breakup of the Carolingian empire, most of it passed (9th cent.) to the east Frankish (i.e., German) kingdom and thus to the Holy Roman Empire.

The counts of Holland emerged as the most powerful medieval lords of the region, next to their southern neighbors, the dukes of Brabant and the counts of Flanders. In the 14th and 15th cent., Flanders, Holland, Zeeland, Gelderland, and Brabant passed to the powerful dukes of Burgundy, who controlled virtually all the Low Countries. Though the Dutch towns and ports were slower in economic development than the flourishing commercial and industrial centers of Flanders and Brabant, they began to rival them in the 15th cent. They nearly all belonged to the Hanseatic League and enjoyed vast autonomous privileges.

The Netherlands has a prosperous and open economy, which depends heavily on foreign trade. The economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 2% of the labor force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The country continues to be one of the leading European nations for attracting foreign direct investment. Economic growth slowed considerably in 2001-05, as part of the global economic slowdown, but for the four years before that, annual growth averaged nearly 4%, well above the EU average.