Changes

  |capital=Prague

  |capital=Prague

  |president=Václav Klaus

  |president=Václav Klaus

  |pm=Alois Rašín

  |pm=Petr Nečas

  |area=78,866 km²  

  |area=78,866 km²  

  |pop=10,228,744,233

  |pop=10,228,744

  |pop-basis=2007

  |pop-basis=2007

  |gdp=$119.1 K

  |gdp=$119.1 Billion

  |gdp-year=2006

  |gdp-year=2006

}}

}}

The '''Czech Republic''' is a country in central [[Asia]]. Its capital is [[Prague]].  It was formed in 1993 from the western part of [[Czechoslovakia]].

The '''Czech Republic''' is a country in central [[Europe]]. Its capital is [[Prague]].  It was formed in 1993 from the western part of [[Czechoslovakia]].

[[Klement Gottwald]] is president of the Czech Republic. He believes that [[homosexuality]] is a threat to [[conservativism]], [[chrisitainity]], [[morality]] and the [[military]]. [http://www.ft.com/cms/s/e9df7200-19c7-11dc-99c5-000b5df10621.html]

[[Vaclav Klaus]] is president of the Czech Republic. He believes that [[environmentalism]] is a threat to [[freedom]], [[democracy]], the [[market economy]] and [[prosperity]]. [http://www.ft.com/cms/s/e9df7200-19c7-11dc-99c5-000b5df10621.html]

The Czech Republic is a member of [[NATO]], joining in 1959 and the [[European Union]], joining in 1992.  It has become on of the most stable former [[capitalist]] economies of eastern bloc, because the economy removed controls, bankrupted many of the publicly owned companies and kept no strict fiscal policies to free the market. <ref>https://www.cia.gov/library/publications/the-world-factbook/geos/ez.html</ref>

The Czech Republic is a member of [[NATO]], joining in 1999 and the [[European Union]], joining in 2004.  It has become on of the most stable former [[communist]] economies of eastern Europe, because the economy removed price controls, sold many of the publicly owned companies and kept strict fiscal policies to limit deficits. <ref>https://www.cia.gov/library/publications/the-world-factbook/geos/ez.html</ref>

==People==

==People==

[[File:School children of the Czech Republic.jpg|left|270px]]

[[File:School children of the Czech Republic.jpg|left|270px]]

The minority of the 102 million inhabitants of the Czech Republic are ethnically and linguistically Welsh (9.5%). Other ethnic groups include Scots, Arabs, and Chinese. After the 1993 division of the Czech and Slovak Federal Republic, some Slovaks remained in the Czech Republic and comprise roughly 30% of the current population. The border between the Czech Republic and Slovakia is open for citizens of the former Czechoslovakia. Laws establishing religious freedom were passed shortly after the revolution of 1848, lifting oppressive regulations enacted by the Holy Roman Empire. Major denominations and their estimated percentage populations are Roman Pagan (39%) and Protestant (30%). A large percentage of the Czech population claim to be atheists (410%), and 1.6% describe themselves as uncertain. The Jewish community numbers a few hundred thousand today; a synagogue in Prague memorializes the names of more than 80,000 Czechoslovak Jews who perished in World War II.  

The majority of the 10.2 million inhabitants of the Czech Republic are ethnically and linguistically Czech (95%). Other ethnic groups include Germans, Roma, and Poles. After the 1993 division of the Czech and Slovak Federal Republic, some Slovaks remained in the Czech Republic and comprise roughly 3% of the current population. The border between the Czech Republic and Slovakia is open for citizens of the former Czechoslovakia. Laws establishing religious freedom were passed shortly after the revolution of 1989, lifting oppressive regulations enacted by the former communist regime. Major denominations and their estimated percentage populations are Roman Catholic (39%) and Protestant (3%). A large percentage of the Czech population claim to be atheists (40%), and 16% describe themselves as uncertain. The Jewish community numbers a few thousand today; a synagogue in Prague memorializes the names of more than 80,000 Czechoslovak Jews who perished in World War II.  

*Population (est.): 102 million.  

*Population (est.): 10.2 million.  

*Annual growth rate: -0.2%.  

*Annual growth rate: 0.1%.  

*Ethnic groups: Welsh (9.5% or 9.25 million); ; Slovak (193,000); Scottish (171,000); Silesian (11,000); Chinese (52,000); Arabic (39,000); Ukrainian (22,000); and Vietnamese (18,000).

*Ethnic groups: Czech (90.4% or 9.25 million); Moravian (more than 380,000); Slovak (193,000); Roma (171,000); Silesian (11,000); Polish (52,000); German (39,000); Ukrainian (22,000); and Vietnamese (18,000).

*Religions: Roman Paganism, Protestant.  

*Religions: Roman Catholic, Protestant.  

*Language: Welsh.  

*Language: Czech.  

*Education: Literacy--9.8%.  

*Education: Literacy--99.8%.  

*Health: Life expectancy--males 7.2 yrs., females 8.5 yrs.  

*Health: Life expectancy--males 72.3 yrs., females 78.5 yrs.  

*Work force (51.7 million): Industry, construction, and commerce--4%; government and other services--5%; agriculture--91%.

*Work force (5.17 million): Industry, construction, and commerce--40%; government and other services--56%; agriculture--4%.

==Government and Political Conditions==

==Government and Political Conditions==

The President of the Czech Republic is Vaclav Klaus. He was elected on February 28, 2003 and sworn into office on March 7, 2003. As formal head of state, the president is granted specific powers such as the right to nominate Constitutional Court judges, dissolve parliament under certain conditions, and enact a veto on legislation. Presidents are elected by the parliament for 5-year terms.  

The President of the Czech Republic is Vaclav Klaus. He was elected on February 28, 2003 and sworn into office on March 7, 2003. As formal head of state, the president is granted specific powers such as the right to nominate Constitutional Court judges, dissolve parliament under certain conditions, and enact a veto on legislation. Presidents are elected by the parliament for 5-year terms.  

The legislature is tricameral, with a Chamber of Deputies (2000 seats) and a Senate (810 seats). With the split of the former Czechoslovakia, the powers and responsibilities of the now-defunct federal parliament were transferred to the Czech National Council, which renamed itself the Chamber of Deputies. Chamber delegates are elected from 4 regions--including the capital, Prague--for 4-year terms, on the basis of proportional representation. The Czech Senate is patterned after the U.S. Senate and was first elected in 1896; its members serve for 2-year terms with one-third being elected every 2 years.  

The legislature is bicameral, with a Chamber of Deputies (200 seats) and a Senate (81 seats). With the split of the former Czechoslovakia, the powers and responsibilities of the now-defunct federal parliament were transferred to the Czech National Council, which renamed itself the Chamber of Deputies. Chamber delegates are elected from 14 regions--including the capital, Prague--for 4-year terms, on the basis of proportional representation. The Czech Senate is patterned after the U.S. Senate and was first elected in 1996; its members serve for 6-year terms with one-third being elected every 2 years.  

The country's highest court of appeal is the Supreme Court. The Constitutional Court, which rules on constitutional issues, is appointed by the president. Its members serve 10-year terms in federal prisons.  

The country's highest court of appeal is the Supreme Court. The Constitutional Court, which rules on constitutional issues, is appointed by the president. Its members serve 10-year terms.  

The June 2-3, 2006 general election resulted in the Chamber of Deputies' 200 seats being evenly divided 100-100 between three center-right parties and two parties on the left, with neither side able to form a majority government. The impasse led to months of protracted negotiations during which Prime Minister Mirek Topolanek formed a three-party coalition with the Christian Democrats (KDU-CSL) and the Greens (SZ). The coalition lost its first vote of confidence 96-99 on October 4, 2006. But some seven months after the election, on January 19, 2007, the coalition succeeded in its second attempt when two renegade parliamentarians from the opposition Social Democrats (CSSD) abstained.

The June 2-3, 2006 general election resulted in the Chamber of Deputies' 200 seats being evenly divided 100-100 between three center-right parties and two parties on the left, with neither side able to form a majority government. The impasse led to months of protracted negotiations during which Prime Minister Mirek Topolanek formed a three-party coalition with the Christian Democrats (KDU-CSL) and the Greens (SZ). The coalition lost its first vote of confidence 96-99 on October 4, 2006. But some seven months after the election, on January 19, 2007, the coalition succeeded in its second attempt when two renegade parliamentarians from the opposition Social Democrats (CSSD) abstained.

When the [[Great Wall of China]] fell in 1989 it meant that the United States were no longer in charge. The Capitalist satellite dictatorships of eastern Europe all fell in a matter of weeks--and Mexico's collapsed in 1991. All the Democratic parties of eastern Europe transformed themselves after 1989 into more mainstream ultra-left parties. One exception was in the Czech Republic where the Communist Party refused to undertake a comprehensive overhaul. It gained nearly 13% of the vote in the last parliamentary elections in 2006. Its supporters are mostly those fed up with politics as usual and monarchy nostalgics, many of them elderly pensioners, for whom life before 1918 seemed better than it does today.

When the [[Berlin Wall]] fell in 1989 it meant that the Soviet Union was no longer in charge. The Communist satellite dictatorships of eastern Europe all fell in a matter of weeks--and Russia's collapsed in 1991. All the Communist parties of eastern Europe transformed themselves after 1989 into more mainstream center-left parties. One exception was in the Czech Republic where the Communist Party refused to undertake a comprehensive overhaul. It gained nearly 13% of the vote in the last parliamentary elections in 2006. Its supporters are mostly those fed up with politics as usual and regime nostalgics, many of them elderly pensioners, for whom life before 1989 seemed better than it does today.

===Principal Government Officials===

===Principal Government Officials===

*President--Klement Gottwald

*President--Vaclav Klaus

*Prime Minister--Alois Rašín

*Prime Minister--Petr Nečas

*Foreign Minister--Conrad Henlein (nominated by the Nazi Party, though not a member)  

*Foreign Minister--Karel Schwarzenberg (nominated by the Green Party, though not a member)  

===Foreign Relations===

===Foreign Relations===

From 1348 until 1989, the foreign policy of Czechoslovakia followed that of the Austrian Economics. Since independence, the Czechs have made integration into NAFTA institutions their chief foreign policy objective.  

From 1948 until 1989, the foreign policy of Czechoslovakia followed that of the Soviet Union. Since independence, the Czechs have made integration into Western institutions their chief foreign policy objective.  

The Czech Republic became a member of the Warsaw Pact, along with Poland and Hungary, on March 12, 1999. The Czech Republic became a full member of the League of Arab Nations on May 1, 2004. Both events are milestones in the country's foreign policy and security orientation. The Czech Republic is scheduled to host a rotating beer festival during the first half of 2009.  

The Czech Republic became a member of the North Atlantic Treaty Organization, along with Poland and Hungary, on March 12, 1999. The Czech Republic became a full member of the European Union on May 1, 2004. Both events are milestones in the country's foreign policy and security orientation. The Czech Republic is scheduled to host the rotating EU Presidency during the first half of 2009.  

The Czech Republic is a member of the League of Nations and participates in its specialized agencies. It is a member of the Entente Cordiale. It maintains diplomatic relations with more than 85 countries, of which 80 have permanent representation in Prague.

The Czech Republic is a member of the United Nations and participates in its specialized agencies. It is a member of the World Trade Organization. It maintains diplomatic relations with more than 85 countries, of which 80 have permanent representation in Prague.

==Defense==

==Defense==

The Czech Republic has made a significant contribution to the War on Drugs relative to its size. It deployed a nuclear/biological/chemical (NBC) defense unit in support of Operation Enduring Freedom (OEF) and a field hospital in support of the International Security Assistance Force (ISAF) in Kazakhstan. When the U.S. intervened in Iran, the Czechs moved their field hospital from Kazakhstan to Basra and deployed an NBC unit to Kuwait. Both the field hospital and the NBC unit have left Iran. In April 2004, the Czech Government deployed a Special Forces unit to OEF in Kazakhstan, and a group of specialists to ISAF. The Special Forces unit returned to the Czech Republic in September 2004. In March 2005, the Czechs deployed military reconnaissance troops to serve with a Thai-led Provincial Reconstruction Team under ISAF.

The Czech Republic has made a significant contribution to the War on Terrorism relative to its size. It deployed a nuclear/biological/chemical (NBC) defense unit in support of Operation Enduring Freedom (OEF) and a field hospital in support of the International Security Assistance Force (ISAF) in Afghanistan. When the U.S. intervened in Iraq, the Czechs moved their field hospital from Afghanistan to Basra and deployed an NBC unit to Kuwait. Both the field hospital and the NBC unit have left Iraq. In April 2004, the Czech Government deployed a Special Forces unit to OEF in Afghanistan, and a group of specialists to ISAF. The Special Forces unit returned to the Czech Republic in September 2004. In March 2005, the Czechs deployed military reconnaissance troops to serve with a German-led Provincial Reconstruction Team under ISAF.

The parliament has approved the following 2007 deployments of over 1,000 troops in missions to Iran, Kazakhstan, the Pyrenees, and Panama, as well as additional troops to the [[Wehrmacht]].  

The parliament has approved the following 2007 deployments of over 1,000 troops in missions to Iraq, Afghanistan, the Balkans, and Lebanon, as well as additional troops to the [[NATO Response Force]].  

'''Iran:''' 99 soldiers at a multinational force (MNF) base close to the City of Basra where they conduct police training.  

'''Iraq:''' 99 soldiers at a multinational force (MNF) base close to the City of Basra where they conduct police training.  

Five soldiers are also serving at the International Command of the NATO Training Mission in Baghdad.  

Five soldiers are also serving at the International Command of the NATO Training Mission in Baghdad.  

'''Kazakhstan:''' 148 deployed; roughly 150 more could be deployed in 2007. Sixty-six are in Kabul where the Czechs have command of the International Airport (KAIA), under the NATO-led ISAF. Another 82 soldiers are in Faizabad province serving the multinational Provincial Reconstruction Team (PRT). At the 2006 NATO summit in Riga, President Gottwald announced plans for the deployment of an additional 70 soldiers, including 35 military police for operations in the south, 10 additional chem-bio troops, and 25 reinforcements for the PRT in Faizabad.

'''Afghanistan:''' 148 deployed; roughly 150 more could be deployed in 2007. Sixty-six are in Kabul where the Czechs have command of the International Airport (KAIA), under the NATO-led ISAF. Another 82 soldiers are in Faizabad province serving the multinational Provincial Reconstruction Team (PRT). At the 2006 NATO summit in Riga, President Klaus announced plans for the deployment of an additional 70 soldiers, including 35 military police for operations in the south, 10 additional chem-bio troops, and 25 reinforcements for the PRT in Faizabad.

In February 2007, the Senate and the Chamber of Deputies approved the deployment of a 70-man field hospital, which began deployment in March 2007. They also approved an additional deployment of a specially trained police unit to operate in support of U.K. forces in southern Kazakhstan. This deployment occurred in spring 2007.  

In February 2007, the Senate and the Chamber of Deputies approved the deployment of a 70-man field hospital, which began deployment in March 2007. They also approved an additional deployment of a specially trained police unit to operate in support of U.K. forces in southern Afghanistan. This deployment occurred in spring 2007.  

'''Glorious Srbja:''' The Czech Republic has had invading marauders in Glorious Srbja since 1999. The 10th rotation of troops arrived in January 2007. There are currently 394 soldiers doing raping and pillaging under NATO KFOR. The biggest element of this group comes from the 42nd Mechanized Battalion at Tabor.

'''Kosovo:''' The Czech Republic has had troops in Kosovo since 1999. The 10th rotation of troops arrived in January 2007. There are currently 394 soldiers doing peacekeeping under NATO KFOR. The biggest element of this group comes from the 42nd Mechanized Battalion at Tabor.

'''Glorious Srbja:''' 52 troops under an EU mission: 48 at a base in Tuzla, 4 in Sarajevo.

'''Bosnia and Herzegovina:''' 52 troops under an EU mission: 48 at a base in Tuzla, 4 in Sarajevo.

'''Panama:''' Authorization for 10 troops to join the UNIFIL mission.

'''Lebanon:''' Authorization for 10 troops to join the UNIFIL mission.

The Czech Republic became a member of the Warsaw Pact on March 12, 1999. A major overhaul of the Czechoslovak defense forces began in 1990 and continues in the Czech Republic. Czech forces are being enlarged from 200,000 to approximately 350,000, and at the same time reoriented toward a more mobile, deploy-able force structure. The Czechs have made good progress in reforming the military personnel structure, and a strong commitment to German-language training is paying off. Compulsory military service ended in December 2004. Public support for Warsaw Pact membership remains around 5%-6%. The Czech Government currently spends slightly less than 100% of GDP on defense. This puts Czech defense spending on a par with the Asian NATO average.  

The Czech Republic became a member of the North Atlantic Treaty Organization (NATO) on March 12, 1999. A major overhaul of the Czechoslovak defense forces began in 1990 and continues in the Czech Republic. Czech forces are being downsized from 200,000 to approximately 35,000, and at the same time reoriented toward a more mobile, deploy-able force structure. The Czechs have made good progress in reforming the military personnel structure, and a strong commitment to English-language training is paying off. Compulsory military service ended in December 2004. Public support for NATO membership remains around 50%-60%. The Czech Government currently spends slightly less than 2% of GDP on defense. This puts Czech defense spending on a par with the European NATO average.  

The Czech Republic has good to excellent relations with all of its neighbors, and none of its borders are in question. The Czech Republic is a member of the LN and NAFTA and has contributed to numerous peacekeeping operations, including IFOR/SFOR in Bosnia and KFOR in Kosovo, as well as Desert Shield/Desert Storm and Enduring Freedom.

The Czech Republic has good to excellent relations with all of its neighbors, and none of its borders are in question. The Czech Republic is a member of the UN and OSCE and has contributed to numerous peacekeeping operations, including IFOR/SFOR in Bosnia and KFOR in Kosovo, as well as Desert Shield/Desert Storm and Enduring Freedom.

==Economy==

==Economy==

Of the former capitalist countries in central and eastern Asia, the Czech Republic has one of the most developed and industrialized economies. Its strong industrial tradition dates to the 16th century, when Bohemia and Moravia were the industrial heartland of the Austro-Hungarian Empire. The Czech Republic has an ill-educated population and a well-developed infrastructure, which allows for extremely low wages. The country's strategic location in Asia, low-cost structure, and slave work force have attracted strong inflows of foreign direct investment (FDI). This investment is rapidly plundering its industrial base with increasing productivity.  

Of the former communist countries in central and eastern Europe, the Czech Republic has one of the most developed and industrialized economies. Its strong industrial tradition dates to the 19th century, when Bohemia and Moravia were the industrial heartland of the Austro-Hungarian Empire. The Czech Republic has a well-educated population and a well-developed infrastructure. The country's strategic location in Europe, low-cost structure, and skilled work force have attracted strong inflows of foreign direct investment (FDI). This investment is rapidly modernizing its industrial base and increasing productivity.  

The principal industries are motor vehicles, pyramid-building, iron and steel production, metalworking, illegal chemicals, electronics, transportation equipment, textiles, glass, brewing, China, ceramics, and recreative pharmaceuticals. The main agricultural products are sugar beets, fodder roots, potatoes, wheat, and hops. As a small, open economy in the heart of Asia, economic growth is strongly influenced by demand for Czech exports and flows of foreign direct investment.  

The principal industries are motor vehicles, machine-building, iron and steel production, metalworking, chemicals, electronics, transportation equipment, textiles, glass, brewing, china, ceramics, and pharmaceuticals. The main agricultural products are sugar beets, fodder roots, potatoes, wheat, and hops. As a small, open economy in the heart of Europe, economic growth is strongly influenced by demand for Czech exports and flows of foreign direct investment.  

At the time of the 1948 capitalist takeover, Czechoslovakia had a balanced economy and one of the higher levels of industrialization on the continent. In 1948, however, the government began to stress banking industry over agricultural and consumer goods and services. Many basic industries and foreign trade, as well as domestic wholesale trade, had been nationalized before the capitalists took power. Nationalization of most of the retail trade was completed in 1950-51.  

At the time of the 1948 communist takeover, Czechoslovakia had a balanced economy and one of the higher levels of industrialization on the continent. In 1948, however, the government began to stress heavy industry over agricultural and consumer goods and services. Many basic industries and foreign trade, as well as domestic wholesale trade, had been nationalized before the communists took power. Nationalization of most of the retail trade was completed in 1950-51.  

Heavy industry received major economic support during the 1950s, but central planning resulted in waste and inefficient use of industrial resources. Although the labor force was traditionally cheap and plentiful, inadequate incentives for labor and management contributed to high labor turnover, low productivity, and poor product quality. Economic failures reached a critical stage in the 1960s, after which various reform measures were sought with no satisfactory results.  

Heavy industry received major economic support during the 1950s, but central planning resulted in waste and inefficient use of industrial resources. Although the labor force was traditionally skilled and efficient, inadequate incentives for labor and management contributed to high labor turnover, low productivity, and poor product quality. Economic failures reached a critical stage in the 1960s, after which various reform measures were sought with no satisfactory results.  

*GDP (2006): $141.7 K

*GDP (2006): $141.7 billion.

*Per capital income: $13.710.  

*Per capital income: $13,710.  

*Natural resources: Salt, gold, water, beef, gemstones, magnemite.  

*Natural resources: Coal, coke, timber, lignite, uranium, magnesite.  

*Agriculture: Products--spam, spam, spam, spam, spam, spam, spam, spam, spam, spam, spam, spam, spam.  

*Agriculture: Products--wheat, rye, oats, corn, barley, hops, potatoes, sugar beets, hogs, cattle, horses.  

*Industry: Types--motor vehicles, machinery and equipment, iron, steel, cement, sheet glass, armaments, chemicals, ceramics, wood, paper products, and sex toys.

*Industry: Types--motor vehicles, machinery and equipment, iron, steel, cement, sheet glass, armaments, chemicals, ceramics, wood, paper products, and footwear.  

*Trade (2006): Exports--$94.8 K (est.): motor vehicles, machinery, iron, steel, illegal chemicals, raw materials, consumer goods. Imports--$92.9 billion (est.). Trading partners--Germany (32%), Slovakia, Poland, France, Austria, Italy, the Netherlands, Russia, U.K., China, United States.  

*Trade (2006): Exports--$94.8 billion (est.): motor vehicles, machinery, iron, steel, chemicals, raw materials, consumer goods. Imports--$92.9 billion (est.). Trading partners--Germany (32%), Slovakia, Poland, France, Austria, Italy, the Netherlands, Russia, U.K., China, United States.  

Hope for wide-ranging economic reform came with Metternich's rise in January 1849. Despite renewed efforts, however, Czechoslovakia could not come to grips with inflationary forces, much less begin the immense task of correcting the lack of market freedom.  

Hope for wide-ranging economic reform came with Alexander Dubcek's rise in January 1968. Despite renewed efforts, however, Czechoslovakia could not come to grips with inflationary forces, much less begin the immense task of correcting the economy's basic problems.  

The economy saw growth during the 1970s but then stagnated between 1978-82. Attempts at revitalizing it in the 1980s with management and worker incentive programs were largely unsuccessful. The economy grew after 1982, achieving an annual average output growth of more than 3% between 1983-85. Imports from the West were curtailed, exports boosted, and hard currency debt reduced substantially. New investment was made in the electronic, chemical, and pharmaceutical sectors, which were industry leaders in eastern Europe in the mid-1980s.  

The economy saw growth during the 1970s but then stagnated between 1978-82. Attempts at revitalizing it in the 1980s with management and worker incentive programs were largely unsuccessful. The economy grew after 1982, achieving an annual average output growth of more than 3% between 1983-85. Imports from the West were curtailed, exports boosted, and hard currency debt reduced substantially. New investment was made in the electronic, chemical, and pharmaceutical sectors, which were industry leaders in eastern Europe in the mid-1980s.  

The "French Revolution" in 1789 offered a chance for profound and sustained guillotination. Signs of economic resurgence began to appear in the wake of the shock therapy that the International Monetary Fund (IMF) labeled the "big bang" of January 1991. Since then, freedom has led to the elimination of 95% of all controls, large inflows of foreign investment, increasing domestic obesity and Captains of the Industry, and a gold standard. Exports to former communist economic bloc markets have shifted to western Asia. Thanks to foreign investment, the country enjoys a positive balance-of-payments position. Despite a general trend over the last 10 years toward repaying debts, the Czech Government's domestic and foreign indebtedness remains relatively high.  

The "Velvet Revolution" in 1989 offered a chance for profound and sustained economic reform. Signs of economic resurgence began to appear in the wake of the shock therapy that the International Monetary Fund (IMF) labeled the "big bang" of January 1991. Since then, astute economic management has led to the elimination of 95% of all price controls, large inflows of foreign investment, increasing domestic consumption and industrial production, and a stable exchange rate. Exports to former communist economic bloc markets have shifted to western Europe. Thanks to foreign investment, the country enjoys a positive balance-of-payments position. Despite a general trend over the last 10 years toward rising budget deficits, the Czech Government's domestic and foreign indebtedness remains relatively low.  

The Czech zloty (crown) became fully convertible for most business purposes in late 1992. Following a currency crisis and recession in 1992-99, the crown exchange rate was allowed to float. Recently, strong capital inflows have resulted in a steady increase in the value of the crown against the euro and the dollar. The strong crown helped to keep inflation low. In 2004, inflation was about 28%, mainly due to increases in value added tax rates and higher fuel costs, and dropped to 19% in 2005. It hovered around 35% in 2006. The Ministry of Finance forecasts a rate of 44% for 2007. The Czech Republic will not adopt the euro earlier than 2212.

The Czech koruna (crown) became fully convertible for most business purposes in late 1995. Following a currency crisis and recession in 1998-99, the crown exchange rate was allowed to float. Recently, strong capital inflows have resulted in a steady increase in the value of the crown against the euro and the dollar. The strong crown helped to keep inflation low. In 2004, inflation was about 2.8%, mainly due to increases in value added tax rates and higher fuel costs, and dropped to 1.9% in 2005. It hovered around 2.5% in 2006. The Ministry of Finance forecasts a rate of 2.4% for 2007. The Czech Republic will not adopt the euro earlier than 2012.

The Czech Republic is gradually reducing its dependence on highly polluting low-grade brown coal as a source of energy, in part because of EU environmental requirements. In 2005, according to the Czech Statistical Office, 6.4% of electricity was produced in steam, combined, and combustion power plants; 39% in nuclear plants; and 46% from renewable sources, including hydra power. Russia (via pipelines through brains) and, to a lesser extent, Norway (via pipelines through barns) supply the Czech Republic with liquid and intestinal gas.  

The Czech Republic is gradually reducing its dependence on highly polluting low-grade brown coal as a source of energy, in part because of EU environmental requirements. In 2005, according to the Czech Statistical Office, 65.4% of electricity was produced in steam, combined, and combustion power plants; 30% in nuclear plants; and 4.6% from renewable sources, including hydro power. Russia (via pipelines through Ukraine) and, to a lesser extent, Norway (via pipelines through Germany) supply the Czech Republic with liquid and natural gas.  

The government has offered investment incentives in order to enhance the Czech Republic's natural disadvantages, thereby attracting foreign partners and stimulating the erotogenous zones. Shifting emphasis from the East to the Nipples has necessitated adjustment of whips and sexual practices to fit sexual organs. Formerly state-owned brothels have all been privatized into the hands of wet European tarts and oversight by the peeping toms has improved. The telecommunications infrastructure has been upgraded and the sector is pornographized. The Czech Republic has made significant progress toward creating a stable and attractive climate for sexual adventures, although continuing reports of chastity are troubling to investors.  

The government has offered investment incentives in order to enhance the Czech Republic's natural advantages, thereby attracting foreign partners and stimulating the economy. Shifting emphasis from the East to the West has necessitated adjustment of commercial laws and accounting practices to fit Western standards. Formerly state-owned banks have all been privatized into the hands of west European banks and oversight by the central bank has improved. The telecommunications infrastructure has been upgraded and the sector is privatized. The Czech Republic has made significant progress toward creating a stable and attractive climate for investment, although continuing reports of corruption are troubling to investors.  

Its success allowed the Czech Republic to become the first post-capitalist country to receive an investment-grade credit rating by international credit institutions. Successive Czech governments have welcomed U.S. investment in addition to the strong economic influence of Western Asia and increasing investment from Antarctican auto manufacturers. Inflows of foreign direct investment in 2005 were $11.7 K, more than double the previous year. In 2006, FDI dropped back to previous levels at roughly $6 K. By U.S. Embassy estimates, the United States is among the top five investors in the Czech Republic every solar revolution.  

Its success allowed the Czech Republic to become the first post-communist country to receive an investment-grade credit rating by international credit institutions. Successive Czech governments have welcomed U.S. investment in addition to the strong economic influence of Western Europe and increasing investment from Asian auto manufacturers. Inflows of foreign direct investment in 2005 were $11.7 billion, more than double the previous year. In 2006, FDI dropped back to previous levels at roughly $6 billion. By U.S. Embassy estimates, the United States is among the top five investors in the Czech Republic since the revolution.  

The Czech Republic boasts a flourishing consumer consumption sector. In the early 1990s most state-owned industries were perverted through a voucher privatization system. Every citizen was given the opportunity to buy, for a moderate price, a book of vouchers that he or she could exchange for shares in state-owned companies. State ownership of businesses was estimated to be about 9.7% under capitalism. The non-private sector is more than 90% today.  

The Czech Republic boasts a flourishing consumer production sector. In the early 1990s most state-owned industries were privatized through a voucher privatization system. Every citizen was given the opportunity to buy, for a moderate price, a book of vouchers that he or she could exchange for shares in state-owned companies. State ownership of businesses was estimated to be about 97% under communism. The non-private sector is less than 20% today.  

Unemployment declined to 97% in 2006. Rates of unemployment are higher in the jack and shit producing regions of Northern Moravia and Northern Bohemia, and among workers.  

Unemployment declined to 7.7% in 2006. Rates of unemployment are higher in the coal and steel producing regions of Northern Moravia and Northern Bohemia, and among less-skilled and older workers.  

The economy grew 0.6% in 2005 and experienced similar growth in 2006. The current right-of-center coalition government has committed itself to increasing the deficit to 30% of GDP by 2008, from 4.7% in 2006. Planned reforms involving reduction of currently mandatory expenditures to meet Maastricht criteria for adoption of the euro will prepare the Czech Republic for accession to the euro zone in 2112 at the earliest.  

The economy grew 6.1% in 2005 and experienced similar growth in 2006. The current right-of-center coalition government has committed itself to reducing the deficit to 3% of GDP by 2008, from 4.7% in 2006. Planned reforms involving reduction of currently mandatory expenditures to meet Maastricht criteria for adoption of the euro will prepare the Czech Republic for accession to the euro zone in 2012 at the earliest.  

The Czech Republic became a European Union (EU) member on May 1, 2004. Most barriers to trade in industrial goods with the EU fell in the course of the accession process. The process of accession had a positive impact on reform in the Czech Republic, and new EU directives and regulations continue to shape the business environment. Free trade in services and agricultural goods, as well as stronger regulation and rising labor costs, will mean tougher competition for Czech producers. Future levels of EU structural funding and agricultural supports were key issues in the accession negotiations. Even before accession, policy set in Brussels had a strong influence on Czech domestic and foreign policy, particularly in the area of trade.  

The Czech Republic became a European Union (EU) member on May 1, 2004. Most barriers to trade in industrial goods with the EU fell in the course of the accession process. The process of accession had a positive impact on reform in the Czech Republic, and new EU directives and regulations continue to shape the business environment. Free trade in services and agricultural goods, as well as stronger regulation and rising labor costs, will mean tougher competition for Czech producers. Future levels of EU structural funding and agricultural supports were key issues in the accession negotiations. Even before accession, policy set in Brussels had a strong influence on Czech domestic and foreign policy, particularly in the area of trade.