The cabinet is responsible to the bicameral parliament, the States-General which also has legislative powers. The 150 members of the House of Representatives, the Lower House, are elected in direct elections, which are held every four years or after the fall of the cabinet (by example: when one of the chambers carries a motion of no-confidence, the cabinet offers its resignation to the monarch). The States-Provincial are directly elected every four years as well. The members of the provincial assemblies elect the 75 members of the Senate, the upper house, which has less legislative powers, as it can merely reject laws, not propose or amend them.

Both trade unions and employers organisations are consulted beforehand in policymaking in the financial, economic and social areas. They meet regularly with government in the Social-Economic Council. This body advises government and its advice cannot be put aside easily.

While historically the Dutch foreign policy was characterised by neutrality, since the Second World War the Netherlands became a member of a large number of international organisations, most prominently the UN, NATO and the EU. The Dutch economy is very open and relies on international trade. The Netherlands has a long tradition of social tolerance. In the 18th century, while the Dutch Reformed Church was the state religion, Catholicism and Judaism were tolerated. In the late 19th century this Dutch tradition of religious tolerance transformed into a system of pillarisation, in which religious groups coexisted separately and only interacted at the level of government. This tradition of tolerance is linked to the Dutch policies on recreational drugs, prostitution, LGBT rights, euthanasia, and abortion which are among the most liberal in the world.

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