Following the First World War, the Czechs and Slovaks merged to form Czechoslovakia. After World War II, Czechoslovakia fell within the Soviet sphere of influence. In 1968, an invasion by Warsaw Pact troops ended the efforts of the country's leaders to liberalize Communist party rule and create "socialism with a human face." Anti-Soviet demonstrations the following year ushered in a period of harsh repression. With the collapse of Soviet authority in 1989, Czechoslovakia regained its freedom through a peaceful "Velvet Revolution."
On 1 January 1993, the country underwent a "velvet divorce" into its two national components, the Czech Republic and Slovakia.
The Czech Republic joined NATO in 1999 and the European Union in 2004.
The Czech Republic is strategically located astride some of oldest and most significant land routes in Europe; Moravian Gate is a traditional military corridor between the North European Plain and the Danube in Central Europe.
Facts and Figures
National Name
:
Czech Republic / Ceska
Size
:
78,866 sq km
Population
:
10,241,138
Capital
:
Prague
Largest Cities
:
Brno, Plzen, Olomonc, Ostrava
Main Religion
:
Lutheran National Church
Monetary Unit
:
Czech Koruna
Climate
:
Temperate
Economy
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth in 2000-04 was supported by exports to the EU, primarily to Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. Current account deficits of around 5% of GDP are beginning to decline as demand for Czech products in the European Union increases. Inflation is under control.
Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention of bringing the public finance gap down to 4% of GDP by 2006. But pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned telecommunications firm Cesky Telecom is scheduled to take place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds should strengthen output growth.
Industries
Metallurgy, machinery and equipment, motor vehicles, glass, armaments.
Telecommunications Infrastructure
Privatization and modernization of the Czech telecommunication system got a late start but is advancing steadily.
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