Critical systems
In order to absorb major shocks properly, certain systems are of critical importance to general well-being or specific SDGs. Critical systems are systems that are too important to fail or that serve a crucial societal function that cannot fail. The government’s ability to operate effectively is especially vital when a shock affects large parts of the population.
- Dependence on energy imports has stabilised at around 70 percent, ending the previous upward trend.
- The number of ICT security incidents in the ICT sector is decreasing.
- Trust in judges and the police is growing.
- The effectiveness of public administration and the rule of law is decreasing.
Critical systems: System failure
in EU
in 2023
in EU
in 2023
Critical systems: Essential social function
in EU
in 2023
in EU
in 2023
in EU
in 2023
in EU
in 2021
Government leverage
in EU
in 2023
in EU
in 2023
in EU
in 2023
| Theme | Indicator | Value | Trend | Position in EU | Position in EU ranking |
|---|---|---|---|---|---|
| Critical systems: System failure | Power failure | 24 minutes without power due to blackouts per customer in 2024 | |||
| Critical systems: System failure | Dependency on energy imports | 68.9% of energy is imported in 2024 | 20th out of 27 in 2023 | Middle ranking | |
| Critical systems: System failure | Renewable energy | 17.4% of total final energy consumption in 2023 | increasing (increase well-being) | 20th out of 27 in 2023 | Middle ranking |
| Critical systems: System failure | ICT security incidents in the private sector | 8% of businesses had incidents caused by harmful intent in 2023 | |||
| Critical systems: System failure | ICT security incidents in the information and communication sector | 8% of businesses had incidents in 2023 | decreasing (increase well-being) | ||
| Critical systems: Essential social function | Common equity Tier 1 ratio | 16.5% core capital within banks total risk weighted assets in 2023 | 20th out of 27 in 2023 | Middle ranking | |
| Critical systems: Essential social function | Trust in institutions | 62.9% of the population over 15 answered “very high“ or “fairly high“ in 2024 | 3rd out of 19 in 2023 | High ranking | |
| Critical systems: Essential social function | Time lost due to traffic congestion and delays | 3.46 vehicle hours lost per capita in 2023 | |||
| Critical systems: Essential social function | Job vacancy rate health and welfare | 43 vacancies per 1,000 jobs on 31 December 2024 | increasing (decrease well-being) | 24th out of 26 in 2023 | Low ranking |
| Critical systems: Essential social function | Level of water stress | 15.7% fresh water extracted from total amount of fresh water in 2023 | 14th out of 27 in 2021 | Middle ranking | |
| Government leverage | Government debt | 43.3% of gross domestic product in 2024 | decreasing (increase well-being) | 10th out of 27 in 2023 | Middle ranking |
| Government leverage | Government effectiveness | 1.63 score on a scale of -2.5 (weak) to 2.5 (strong) in 2023 | decreasing (decrease well-being) | 4th out of 27 in 2023 | High ranking |
| Government leverage | Rule of law | 1.64 score on a scale of -2.5 (weak) to 2.5 (strong) in 2023 | decreasing (decrease well-being) | 5th out of 27 in 2023 | High ranking |
Systems that cannot be allowed to fail include the power grid and the IT infrastructure. Dependence on energy imports has stabilised at around 70 percent, ending the previous upward trend. In 2024, the Netherlands relied on foreign energy imports for 68.9 percent of its energy use. At the same time, the share of renewable energy in gross national energy consumption has grown significantly, from less than 2 percent at the beginning of the 21st century to 6.5 percent in 2017 and 17.4 percent in 2023. Although its energy dependence is relatively high, the Netherlands has moved up towards the middle of the EU-27 ranking, climbing from 24th place in 2022 to 20th place in 2023. This can be attributed to the strong growth in renewable energy. In 2023, 8 percent of all companies experienced an ICT incident caused by malicious actors. While ICT security incidents were equally common in the ICT sector itself, this figure is trending downwards.
Due to their vital societal function, banks, institutions, traffic and transport, the water supply and healthcare are systems that are too important to fail. Trust in institutions is relatively high and was 1.7 percentage points higher in 2024 than in 2023. SDG 16.1 Security and SDG 16.2 Institutions show that trust in judges and the police is trending upwards, and that trust in civil servants, the House of Representatives, municipal councils and the European Union also increased from 2023 to 2024.
The labour shortage in the healthcare sector is high compared to other EU countries. With 43 vacancies per thousand jobs at the end of 2024, the vacancy rate in health and social care is increasing.
The Common Equity Tier 1 ratio (CET1) measures a bank’s exposure to outstanding loans relative to its equity. It provides an indication of whether banks are sufficiently resilient to a prolonged period of low growth, high interest rates and high inflation. The Basel III Accord sets a minimum requirement of 4.5 percent equity relative to total risk-weighted assets. With an overall CET1 ratio of 16.5 percent, the Netherlands ranks 20th out of 27 countries. While this is not low, it is still below average.
The government’s ability to operate effectively is vital when a shock affects large parts of the population. Government debt fell to 43.3 percent of GDP in 2024, but although the quality of Dutch public institutions is high compared to other countries, the effectiveness of public administration and the rule of law is gradually decreasing. This indicates a decline in the government’s ability to operate effectively.