Resilience: systems

In the event of a shock, certain systems are critical for well-being or for certain SDGs. Critical systems are those that may not be allowed to fail or that have a societal function that is too important to be allowed to fail. The effectiveness of government is particularly important when a shock affects large parts of the population.
  • Dutch energy supply is becoming increasingly dependent on imports, even though the share of renewable energy in energy consumption shows an upward trend.
  • Banks, water supply, and healthcare have essential societal functions and are under pressure. The Netherlands ranks 18th in the EU in terms of the Common Equity Tier 1 ratio, an indicator of whether banks are sufficiently shock resistant. Extraction of fresh water is putting increasing pressure on renewable freshwater sources (water stress). The healthcare sector is facing staff shortages: the vacancy rate is relatively high and is trending upwards.
  • Trust in institutions is relatively high and stable.
  • The trends in effectiveness of government and rule of law are declining, indicating a decline in the government's ability to act decisively.

Resilience of critical systems

Critical systems: System failure

22
minutes without power due to blackouts per customer in 2023
Power failure
79.4%
of energy is imported in 2022
The long-term trend is increasing (decrease well-being)
24th
out of 27
in EU
in 2022
Dependency on energy imports
15.0%
of total final energy consumption in 2022
The long-term trend is increasing (increase well-being)
23rd
out of 27
in EU
in 2022
Renewable energy
8%
of businesses had incidents caused by harmful intent in 2022
ICT security incidents in the private sector
11%
of businesses had incidents in 2022
ICT security incidents in the information and communication sector

Critical systems: Essential social function

16.1%
core capital within banks total risk weighted assets in 2022
18th
out of 27
in EU
in 2022
Common equity Tier 1 ratio
61.2%
of the population over 15 answered “very high“ or “fairly high“ in   2023
2nd
out of 19
in EU
in 2020
Trust in institutions
3.28
vehicle hours lost per capita in 2022
Time lost due to traffic congestion and delays
42
vacancies per 1,000 jobs on 31 December 2023
The long-term trend is increasing (decrease well-being)
24th
out of 25
in EU
in 2022
Job vacancy rate health and welfare
17.7%
fresh water extracted from total amount of fresh water in 2022
The long-term trend is increasing (decrease well-being)
14th
out of 27
in EU
in 2020
Level of water stress

Government leverage

46.5%
of gross domestic product in 2023
The long-term trend is decreasing (increase well-being)
12th
out of 27
in EU
in 2022
Government debt
1.58
score on a scale of -2.5 (weak) to 2.5 (strong) in 2022
The long-term trend is decreasing (decrease well-being)
4th
out of 27
in EU
in 2022
Government effectiveness
1.66
score on a scale of -2.5 (weak) to 2.5 (strong) in 2022
The long-term trend is decreasing (decrease well-being)
6th
out of 27
in EU
in 2022
Rule of law
Resilience of critical systems
Theme Indicator Value Trend Position in EU Position in EU ranking
Critical systems: System failure Power failure 22 minutes without power due to blackouts per customer in 2023
Critical systems: System failure Dependency on energy imports 79.4% of energy is imported in 2022 increasing (decrease well-being) 24th out of 27 in 2022 Low ranking
Critical systems: System failure Renewable energy 15.0% of total final energy consumption in 2022 increasing (increase well-being) 23rd out of 27 in 2022 Low ranking
Critical systems: System failure ICT security incidents in the private sector 8% of businesses had incidents caused by harmful intent in 2022
Critical systems: System failure ICT security incidents in the information and communication sector 11% of businesses had incidents in 2022
Critical systems: Essential social function Common equity Tier 1 ratio 16.1% core capital within banks total risk weighted assets in 2022 18th out of 27 in 2022 Middle ranking
Critical systems: Essential social function Trust in institutions 61.2% of the population over 15 answered “very high“ or “fairly high“ in   2023 2nd out of 19 in 2020 High ranking
Critical systems: Essential social function Time lost due to traffic congestion and delays 3.28 vehicle hours lost per capita in 2022
Critical systems: Essential social function Job vacancy rate health and welfare 42 vacancies per 1,000 jobs on 31 December 2023 increasing (decrease well-being) 24th out of 25 in 2022 Low ranking
Critical systems: Essential social function Level of water stress 17.7% fresh water extracted from total amount of fresh water in 2022 increasing (decrease well-being) 14th out of 27 in 2020 Middle ranking
Government leverage Government debt 46.5% of gross domestic product in 2023 decreasing (increase well-being) 12th out of 27 in 2022 Middle ranking
Government leverage Government effectiveness 1.58 score on a scale of -2.5 (weak) to 2.5 (strong) in 2022 decreasing (decrease well-being) 4th out of 27 in 2022 High ranking
Government leverage Rule of law 1.66 score on a scale of -2.5 (weak) to 2.5 (strong) in 2022 decreasing (decrease well-being) 6th out of 27 in 2022 High ranking

Colour codes and notes to the dashboards in the Monitor of Well-being

Critical systems that may not fail include energy supply and IT infrastructure. The indicators show no significant changes, except for the increasing trend for dependence on imported energy sources. This vulnerability is partially offset by the increasing trend for the share of renewable energy in final energy consumption. The indicators for power outages and ICT security incidents cannot be compared internationally.

Banks, institutions, transportation, water supply and healthcare are all systems which – from a societal perspective – are too important to fail. While trust in institutions remains relatively high and stable, other indicators reflect a less optimistic picture. The vacancy rate in the care sector is high compared with other EU countries (24th out of 25 in 2022) and continues to trend upwards, indicating a shortage of healthcare staff. The trend for water stress, the ratio of total freshwater withdrawal to total renewable freshwater resources, taking environmental water requirements into account, is also increasing. Moreover, the Netherlands ranks 18th in the EU list in terms of the Common Equity Tier 1 ratio, an indicator of whether banks are sufficiently resilient to a prolonged period of low growth, high interest rates, and high inflation.

Government debt is trending downwards and amounted to 46.5 percent of GDP in 2023. The effectiveness of government and rule of law are both relatively high. However, the trends are downward, indicating a decrease in effectiveness of government.