I don't understand

So there's been all this stuff for the last few weeks about a European referendum that went to the vote today in the Netherlands. I admit not reading up on it much, but now, after the Dutch voters majorly voted it down (63 to 37%), I still don't understand what it was all about, and how all the voting works. We got flyers in the mailbox promoting the referendum as a good thing for us all, but it sounded like a bunch of "Go Europe!" propaganda that only EU parliament members believe in. I've not grasped how the EU parliament works. My best stab at it from an American perspective is the difference, and overlap, between the federal and state governments. The EU can decide on some big things, but ultimately each member country has autonomy. I think the average European bristles at the idea of an umbrella European government, so I'm not surprised in the least that France and the Netherlands have voted the referendum down. I think the European parliament feels too distant and vague anyway, with only big changes like new member countries and bringing in the Euro noticed. So I understand voters saying "What is all of this stuff 'Europe' wants to do? How does it help me?" And no matter what the explanations in the flyers, people would rather be on the safe side and say "no thanks, we're doing ok as we are." Those are my feelings at least. I'd have voted no.

I further don't understand the repercussions after France voted no. I only found out this evening that after the no vote, various French politicians resigned and some expect members of the Dutch government to resign after the Dutch no vote as well. This I really don't get. Is it their fault it was rejected? Can they not work with their fellow parties anymore? It baffles me.

My head is still spinning after trying to understand coverage on tv and from articles written on expat sites. Still, there was one bit of humour amongst the politics: on tv, as they interviewed various members of the political parties, they spoke to one guy from the socialist party: Mr Tiny Kox. That's just gotta by the most unfortunate name ever. And even better, these interviews were being simulcast all over on CNN, heh.