History of the Netherlands The post-war years saw rapid economic recovery (helped by the American Marshall Plan), followed by the introduction of a welfare state during an era of peace and prosperity. The Netherlands formed a new economic alliance with Belgium and Luxembourg, the Benelux, and all three became founding members of the European Union and NATO. In recent decades, the Dutch economy has been closely linked to that of Germany, and is highly prosperous. The four countries adopted the Euro on 1 January 2002, along with eight other EU member states. The prehistory of the area that is now the Netherlands was largely
Monarchy of the Netherlands old republic as "sovereign prince". In 1815, after Napoleon escaped from Elba, William Frederick raised the Netherlands to the status of a kingdom and proclaimed himself King William I. As part of the rearrangement of Europe at the Congress of Vienna, the House of Orange-Nassau was confirmed as rulers of the Kingdom of the Netherlands, enlarged with what are now Belgium and Luxembourg. At the same time, William became hereditary Grand Duke of Luxembourg in exchange for ceding his family's hereditary lands in Germany to Nassau-Weilburg and Prussia. The Grand Duchy of Luxembourg was a part of the Netherlands (until