The Czech Republic and Slovakia are neighbouring countries in central Europe. Both states share borders with Austria and Poland. The Czech Republic also has a border with Germany, while Slovakia borders Hungary and Ukraine. The two countries were unified until 1993 as Czechoslovakia. Since they separated, both have undergone major economic and social reforms in their attempts to achieve EU membership. This became a reality in 2004 when both countries joined the club.
Recent History
During the Cold War, Czechoslovakia was under Communist rule and was an ally of the USSR through the Warsaw Pact. Soon after the fall of the Berlin Wall, the people of Czechoslovakia overthrew their Communist government in what was dubbed the 'Velvet Revolution'. Although Czechoslovakia remained a single country, the tensions between the majority Czech and minority Slovak populations made this situation unsustainable. On 1 January 1993, the two countries separated in a peaceful 'Velvet divorce'.
As independent states, the Czech Republic and Slovakia both set about adapting to the democratic liberal economic system. Under the presidency of revolutionary democratic leader Václav Havel, it was the Czech Republic that initially made the most rapid development, leading to NATO membership in 1999. However, following serious economic problems and a government reluctant to reform under President Vladimír Merciar during the 1990s, Slovakia has recently made huge advances to become one of the most dynamic economies in central Europe. Whether this progress continues depends on the current centre-left government.
Government Structure
Both the Czech Republic and Slovakia are parliamentary republics. The head of state in the Czech Republic is the President, currently Václav Klaus. Originally elected in 2003, he was re-elected at a close election in February 2008; he has some limited political powers. The President is elected for five-year terms by a joint session of the Parliament. The Czech Parliament has two chambers, the Chamber of Deputies (Poslanecká snemovna), and the Senate. Most political power rests with the Prime Minister and his cabinet. A close election in 2006 led to a hung Parliament under Prime Minister Mirek Topolanek. This government collapsed in March 2009, affecting the whole EU because the Czech Republic held the EU's six-month Presidency at the time. Negotiations established an interim government with Prime Minister Jan Fischer leading the government until the EU Presidency passes to Sweden in July 2009.
The head of state of Slovakia is also the President, currently Ivan Gasparovic, who was re-elected for a second term in 2009. He has more limited powers than his Czech counterpart as most political power rests with the Prime Minister and his cabinet. The Slovak parliament has one chamber - the Narodna Rada Slovenskej Republiky. It has 150 members. The current government, led by Prime Minister Robert Fico, is a coalition between the SMER Party, the Movement for a Democratic Slovakia (LS-HZDS) and the Slovak National Party (SNS).
Relations with the EU
Membership of the European Union has been a key goal of the Czech and Slovak governments. To this end, the Czech Republic underwent major reforms in the 1990s to make its economy more competitive, including reform of the labour market and privatisation of state industries.
However, the Czech government has not been afraid to sound a critical voice within the EU, for example Czech President Vaclav Klaus, was an outspoken critic of the EU Constitution and halted the ratification of the Lisbon Treaty after the Irish rejected it at a referendum in 2008. The Czech Republic held the EU's six-month Presidency from January 2009, but when President Václav Klaus, a euro-sceptic, refused to fly the EU flag over Prague castle.
In Slovakia, the reform process did not happen as rapidly. Before 1998 there were severe doubts about whether Slovakia would be ready to join the EU at the same time as its other former Communist neighbours. However, massive reforms took place under the government of Prime Minister Miklaus Dzurinda between 1998 and 2006 and, more recently, a law passed in March 2010 aimed to crack down on income from crime and corruption. The Slovakian government has allowed many major industries to be privatised and has encouraged foreign investment. A particularly significant reform in Slovakia was the introduction of a flat rate of tax of 19%. As a result of these reforms, many western European businesses, especially car manufacturers, have been attracted to set up in Slovakia.
Since joining the EU, the Czech and Slovak governments have shown broad support for European integration. Both countries became part of the Schengen Convention on free movement in December 2007 and Slovakia adopted the Euro as its currency in 2009.
Facts and Figures
- "Both the Czech Republic and Slovakia have highly industrialised economies. Major exports in both countries include automotives and electrical goods.
- The Czech Republic enjoyed strong economic growth from 2005-2007 with an average GDP growth of 6%, but this fell to 4% in 2008.
- Slovakia's GDP growth was 5.5% in 2005, rising to 6.4% in 2008. However it is predicted to slump to -4% in 2009.
Technical Terms
Hung Parliament: a term describing a parliament where no party or coalition has a clear majority.
Coalition: a formal agreement between political parties to share power in government.
Privatisation: the transfer of companies from state ownership to private control.
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