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.
After the slump in GDP in 2020 (-5.6%), the economy is expected to expand again in 2021 (+4.2%). A sizeable growth in consumptions and investments and a general upswing in the services sector are expected in the second half of 2021.

Primary sector
Agriculture and forests.
More than half of the arable land is used for the growing of cereals. Important are hops, fruit-growing and sugar beet.
Livestock and fishing.
Widespread forage has favoured the development of livestock farming (particularly cattle). Fishing is practiced in the inland waters.

Secondary sector
Minerals.
Coal deposits are particularly significant. The principal fields are Ostrava-Karviná as well as the fields in Northern Bohemia for lignite. However, the country is planning to stop producing electricity from coal by 2040. Natural gas and relatively small amounts of oil are extracted. Other minerals are bentonite, feldspar and kaolin. Uranium mining ended in 2017.
Industry.
Industry remains a fundamental factor in the national economy. Oil refinery plants are in operation in Litvínov and Kralupy nad Vltavou. The country is crossed by an oil pipeline connecting it to Russia (Druzhba). Another pipeline pipes crude oil from Germany (IKL-MERO). The Gazela pipeline transports natural gas from Russia to Germany. There are two active nuclear power plants (Temelín and Dukovany) for a total of 6 reactors, which produce over a third of the electricity and which the government would like to expand by 2040. 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 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. Rubber and cement production plants are widespread. The main mechanical and automobile industries are in Prague, Plzeň, Vítkovice and Mladá Boleslav. The automotive industry (Škoda), including components manufacturing, attracts significant investments: it employs 150 000 people and accounts for a considerable share of total exports.
The furniture and paper industries 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.

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 & banking.
The Czech National Bank acts as the central bank. In April 2017, the country pulled out of the fixed exchange rate with the euro. A new tax system for international digital businesses operating in Czech Republic is still being discussed. Prague is home to a stock exchange.

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 operator in the telecommunications sector (O2) is 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.