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Country A's actual rank drops to bellow GP level, and they are given a year or so to make a comeback, otherwise they will drop their GP status and the next in line country will progress to GP status.
tl;dr wait a year or two untill netherlands fails to make progress back into GP.
he's obviously all-knowing, however at the same time somewhat confused.
Now I think it might be true that they can't fall during a crisis war and possibly also great wars, but they can fall during regular wars.