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The Netherlands has a new king after 120 years.

Queen Beatrix abdicated on Tuesday in favor of her eldest son, Willem-Alexander, who became the country's first king in over 120 years; approximately 25 people applauded the dynastic transfer in front of the Royal Palace in Amsterdam; expectations are that he will bring a more informal touch to the monarchy, including through the presence of his wife, the Argentinian Máxima.

The Netherlands has a new king after 120 years (Photo: Robin Utrecht)

By Gilbert Kreijger and Thomas Escritt

AMSTERDAM, April 30 (Reuters) Queen Beatrix of the Netherlands abdicated on Tuesday in favor of her eldest son, Willem-Alexander, who became the first king of the Netherlands in over 120 years.

Around 25 people applauded the dynastic transfer in front of the Royal Palace in Amsterdam. The ceremony, which included the abdication and automatic succession to the throne, was broadcast live on TV.

Since morning, a crowd had gathered in Dam Square to see the new king and his wife, Queen Maxima, on the palace balcony. Beatrix held back tears as she presented her son.

"A few moments ago, I abdicated the throne. I am happy and grateful to introduce you to your new king," said Beatrix, 75, who now assumes the title of princess.

Wearing a sober purple dress, Beatrix signed the abdication document before ministers, her son, and her daughter-in-law, who wore a light pink dress with a huge bow over her left shoulder.

There is an expectation that Willem-Alexander, 46, a water management specialist, will bring a more informal touch to the monarchy, including through the presence of Maxima, an Argentinian who made her career in investment banking.

Beatrix chose to retire after 33 years as queen, thus following the tradition of her mother and grandmother.

April 30th is celebrated annually in the Netherlands as Queen's Day, a reason for great popular festivities, and this year's ceremony represented an additional reason for celebration, at a time when a sharp drop in property prices, rising unemployment, and reduced consumer confidence have pushed the country into a recession.

For days, Amsterdam has been decorated in orange, the color of royalty. Houses have been covered with flags and banners, and shop windows are filled with cakes, sweets, clothes, and flowers, all in orange.

Many people took time off work and started celebrating on Monday night. Nearly 1 million people were expected at the street parties, with bands and DJs contributing to the lively atmosphere.

The Dutch monarchy is immensely popular. An Ipsos poll showed that approval of the regime rose from 74 percent last year to 78 percent. But the kings and queens of the Netherlands no longer have any political influence—not even to appoint a mediator to conduct exploratory discussions in the formation of governing coalitions.

CROWN ON THE TABLE

Prince Charles (United Kingdom) and Crown Princess Masako (Japan) are among the 2.000 guests at the official investiture ceremony in the 600-year-old Nieuwe Kerk (New Church). There, before parliamentarians, the new king will swear allegiance to the Constitution.

Dutch monarchs are never crowned because, in the absence of an official Church, there is no clergyman available to perform the coronation. But the crown does exist, and it will remain on a table beside the new king throughout the ceremony, along with other jewels of the monarchy.

Willem-Alexander will wear a robe used in investitures since 1815 -- although the garment has been restored and altered at least twice in the last century, for the investitures of his mother and grandmother.

The party is set to continue into the night, with a river parade on the IJ River.

During a time of budget cuts, the government promised moderation in the festivities. This week's ceremonies will cost around 12 million euros, not including security expenses.

(Additional reporting by Sara Webb)