Formerly a part of Czechoslovakia (the state that was created in 1918 after the collapse of the Austro-Hungarian empire), the Czech Republic was formed on 1 January 1993 after a peaceful and consensual separation from Slovakia. Until 2018, the country has been run by successive conservatives (ODS) and social democratic (CSSD) governments. The Czech Republic joined the European Union on the 1 May 2004 and has been a member of NATO since 1999. In line with the new constitutional law, which came into force in 2012, the President of the Republic is elected for a five-year term by direct suffrage and for not more than two consecutive terms. The Parliament is made up of a Chamber of Deputies (200 members, elected for four-year terms), and the Senate (81 members, elected for six-year terms with a third elected every two years).

Defence and justice

Economic situation.
Strong economic growth should stop around 3-3.5% in 2018-19, sustained by internal demand and a smart use of EU capital. At the end of 2017, the unemployment rate was the lowest in the EU (2.9%).

Primary sector
Agriculture and forests.
More than half of the arable land is used for the growing of cereals, the most important of which is hops (in the Ohře valley). Cultivation of fruit and sugar beet is widespread (northern Bohemia and Moravia).
Livestock and fishing.
Widespread forage has favoured the development of livestock farming (particularly cattle). Fishing is practiced in the inland waters.

Secondary sector
Minerals.
The country’s coal deposits are particularly significant. The principal fields are Ostrava-Karviná as well as the fields in Northern Bohemia for lignite. Natural gas and relatively small amounts of oil are extracted around Hodonín and Ostrava-Hrabová. There are gold and uranium deposits (at Příbram and Dolní Rožínka).
Industry.
Industry remains a fundamental factor in the national economy, contributing to over 37% of the GDP. Petroleum refinery plants are in operation in Litvínov, Kralupy nad Vltavou, Pardubice and Kolín. The country has an oil pipeline running through it, connecting it to Russia (Druzhba). Another oil pipeline pipes oil from Germany (MERO-IKL). The Gazela gas pipeline, connected to Nord Stream, transports natural gas from Russia. There are two active nuclear power plants (Temelín and Dukovany) employing uranium extracted in the country, both of which would like to increase their capacity, despite counsel from neighbouring countries. The country is a large net exporter of energy, thanks in part to its significant coal reserves. Also located in the carboniferous zones is the steel industry with a number of blast furnaces which also work with imported minerals.
The metal industry produces lead (at Příbram and Bílina-Chudeřice) and copper. The coal-rich area of Ostrava is also the heart of a healthy chemical industry which produces hydrochloric acid, nitrogenous fertilizers, sulfuric acid, caustic soda, plastic materials and resins, artificial textiles and synthetic fibres. The rubber industry is located in Prague, Zlín and Náchod. Cement production plants are found in Beroun-Králův Dvůr, Radotin-Lochkov, Prachovice, Hranice and Ostrava. The main mechanical and automobile industries are in Prague, Plzeň (headquarters of Skoda), Vítkovice, Mladá Boleslav. The auto parts sector is located in Choceň, Vrchlabí, Kunovice and Zlín. The furniture industry (in Prague, Rousínov, Bučovice and Koryčany) and the paper industry (in Větřní, Plzeň, Česká Kamenice, Štětí and Hostinné) take advantage of the vast forestry resources. The glass industry is concentrated mainly in northern Bohemia. Bohemian porcelain is famous. The country also has an important musical instrument industry based in Kraslice (wind instruments), Luby (stringed instruments) and Krnov (for organs). Bohemian beer is world famous (Plzeň, Prague, České Budějovice).

Main exports
(M US$ - 2017) machinery 33 762, electric and electronic equipment 30 716, cars 21 746, vehicles and parts thereof 16 736, iron and steel 10 449, plastics 6 390, furniture and accessories 5 358, technical and electro-medical appliances 3 599, toys and sports equipment 3 265, pharmaceuticals 2 499, apparel and accessories 2 250, timber 2 183

Finance and banking.
The Czech National Bank acts as the central bank. In April 2017, the Czech Republic pulled out of the fixed exchange rate with the euro, in effect since 2014 to counter the increasing value of the koruna against the unified European currency. The role of Prague’s stock exchange is significant.

Tourism. On the rise, it employs a growing number of people and provides a notable source of income. The main tourist destinations are Prague and other historically important cities such as Karlovy Vary, Olomouc, Český Krumlov and Telč. Most tourists come from Germany or other EU countries.

Transport.
The rail and road network connect with international road and rail systems, linking Czech cities with Budapest, Vienna, Moscow, Berlin and Warsaw.
The system of navigable waterways connects the country with the North Sea (via the River Elbe and its tributaries) and with the Baltic (via the River Oder).

Media and telecommunication.
The main operators in the telecommunications sector are part of the Spanish group Telefónica. The public group Česká Televize operates alongside private companies.

Education.
Schooling is compulsory between the ages of 6 and 16 years. Secondary school lasts four years and includes general and professional education. There are also apprenticeship courses lasting two-to-four years.

Social security and health.
The social security and pension system have a mixed public and private management.