Dutch Republic, 1579 to 1648

The starting point

The provinces were ruled by Philip II of Spain. They had their own assemblies, towns and trade, but no shared government of their own (Dutch Republic).

Founding steps

• 1579: in the Union of Utrecht the provinces promised to defend each other and agreed to act as one in foreign affairs.
• 1581: the Act of Abjuration declared they no longer recognised Philip II as their ruler.
• 1588: they could not agree on a new prince, so they ran the state as a republic.

How the federation worked

• Federal assembly: a small States General sat in The Hague with members from all seven provinces. Each province had one vote, whatever its size.
• Provinces: each had its own assembly and its own chief executive.
• Defence: a stadtholder led the forces. In practice the Princes of Orange held the post, which caused lasting tension with the provinces.
• Treasury: each province paid a fixed share (quota) to the federal level. Holland paid over half, and Amsterdam was its biggest payer.

What was new

In 1602 the Dutch East India Company (VOC) merged rival trading ventures. Its shares traded in Amsterdam, which is often called the first modern stock exchange.

How it held people together

The Union of Utrecht guaranteed personal freedom of belief. One church was privileged, and public office required belonging to it, but people of other faiths could live and trade freely. Many refugees came for that reason.

The result

Spain formally recognised the republic in the Peace of Münster in 1648. Amsterdam became the trading and banking centre of Europe.

What critics record

The VOC used force and slavery in Asia and the Dutch took part in the Atlantic slave trade (Dutch East India Company).

What it shows for Somalia

Regions that keep their own power can still act as one, if each pays its share and the rules are written down.