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. Meanwhile the Netherlands's East Indies possession in Asia was invaded and occupied by Japan. June 1944 to May 1945: Conditions in the Netherlands deteriorated further, leading to starvation and lack of fuel. The German occupation authorities gradually lost control over the situation. Nazis wanted to make a last stand and commit acts of destruction, others tried to mitigate the situation, until the country was finally liberated by the Allies. In the East Indies meanwhile, Japanese occupation continued until the Surrender of Japan on the 15th of August 1945.