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The Czech lands emerged in the late 9th century when it was unified by the Premyslids. The kingdom of Bohemia was a significant local power, but religious conflicts such as the 15th century Hussite Wars and the 17th century Thirty Years War were devastating. It later came under the Habsburg influence and became part of Austria-Hungary.

Following the collapse of this state after World War I, the Czechs and neighbouring Slovaks joined together and formed the independent republic of Czechoslovakia in 1918. This new country contained a large German minority, which would lead to the dissolution of Czechoslovakia when Germany successfully annexed the minority through the Munich Agreement in 1938, and Slovakia gained greater autonomy, with the state renamed "Czecho-Slovakia". Slovakia broke away further in 1939 and the remaining Czech state was occupied by the Germans.

After World War II, a reconstituted 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 liberalise party rule and create "socialism with a human face" during the Prague Spring. In 1989, Czechoslovakia regained its freedom through a peaceful "Velvet Revolution". On January 1, 1993, the country peacefully split in two, creating independent Czech and Slovak republics.

The Czech Republic joined NATO in 1999 and the European Union in 2004.

Politics

According to its constitution the Czech Republic is a parliamentary democracy, whose head of state is a president, indirectly elected every five years by the parliament. The president is also granted specific powers such as the right to nominate Constitutional Court judges, dissolve parliament under certain conditions, and enact a veto on legislation. He also appoints the prime minister, who sets the agenda for most foreign and domestic policy, as well the other members of the cabinet on a proposal by the prime minister.

The Czech parliament (Parlament) is bicameral, with a Chamber of Deputies (Poslanecka snamovna) and a Senate (Senat). The 200 Chamber delegates are elected for 4-year terms, on the basis of proportional representation. The 81 members of the Czech Senate serve for 6-year terms with one-third being elected every 2 years on the basis of two-round majority voting.

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

Geography

The Czech landscape is quite varied; Bohemia to the west consists of a basin, drained by the Elbe (Labe) and Vltava rivers, surrounded by mostly low mountains such as the Sudeten with its part Krkonoše, where one also finds the highest point in the country, the Snezka at 1,602 m. Moravia, the eastern part, is also quite hilly and is drained predominantly by the Morava river, but also contains the source of the Oder river. Water from the landlocked Czech Republic flows to three different seas: the North Sea, Baltic Sea and Black Sea.

The local climate is temperate with warm summers and cold, cloudy, humid winters, typified by a mixture of maritime and continental influences.

Economy

One of the most stable and prosperous of the post-Communist states, the Czech Republic has been recovering from recession since mid-1999. Growth in 2000-2001 was led by exports to the EU, especially Germany, and foreign investment, while domestic demand is reviving.

Uncomfortably high fiscal and current account deficits could be future problems.

Moves to complete banking, telecommunications, and energy privatisation will add to foreign investment, while intensified restructuring among large enterprises and banks and improvements in the financial sector should strengthen output growth.