An Amsterdam assets bank has calculated that the Dutch monarchy boosts the Netherlands' economy to the tune of 4 to 5 billion euros per year. The sums were done in response to an earlier exercise by another independent group which found that the costs of the monarchy amount to 110 million euros a year.

The bank acted on the assumption of Tilburg University Economics Professor Harry van Dalen, who estimates that a monarchy can stimulate the economic growth by about 1 percent. "Using that, we arrived at the figure of 4 to 5 billion euros," according to the director of the Wijs & Oostveen assets bank, Steven Sarphatie.

Confidence bonus
The economic stimulus is caused by trade missions accompanying the royals on state visits abroad. The presence of the royal family also inspires confidence and projects stability. "Prime ministers come and go, but a monarch remains and is important for the image of a country," Mr Sarphatie said.

Limited powers
The Dutch form of government is known as a constitutional monarchy. The country is governed by the cabinet and the head of state, but the powers of the ruling monarch are limited to appointing a prime minister, and countersigning laws that have been passed by parliament. The government of the day is always responsible for the actions of the monarch, currently 72-year old Queen Beatrix.

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