World War II in the Netherlands can be broken down into four periods: September 1939 to May 1940: After the war broke out, the Netherlands declared neutrality. The country was later invaded and occupied by Germany.
May 1940 to June 1941: An economic boom caused by orders from Germany, combined with the "velvet glove" approach from Arthur Seyss-Inquart, resulted in a comparatively mild occupation.
June 1941 to June 1944: As the war intensified, Germany demanded higher contributions from occupied territories, resulting in a decline of living standards in the Netherlands. Repression against the Jewish population intensified and thousands were deported to extermination camps. The "velvet glove" approach ended.