Amsterdam. The constitutional capital and principal city of the Netherlands. It is divided by canals into about 90 islands joined by about 400 bridges. Almost the entire city rests on a foundation of piles driven through peat and sand to a firm substratum of clay. Amsterdam is Europe's second largest port and one of its most important commercial centres. Amsterdam has been an important centre of European cultural life since the 17th century. The royal palace, originally built in the 17th century as the town hall, stands on a ... (more)