The Czech Republic is seen as a stable, progressive central European country which provides a key link between the Germanic and Slavic worlds -- between the developed and developing parts of Europe.

With its capital Prague, an architectural jewel in central Europe, the Czech Republic has emerged as a major tourist destination, but hopes to reap even greater economic benefits from joining the bloc. Its economic strengths include a good transportation network, skilled workforce and light industry.

Czechs backed EU membership by over 77 percent in a referendum last year.

Since the fall of communism in 1989 the central European state of 10.21 million people has privatised much of its economy.

As labour costs align to those of the West the country, which has led the central European region in per capita foreign direct investment levels, has seen a shift in the type of FDI away from labour-intensive production facilities toward services and research and development.

Its main industries include metallurgy, machinery and equipment, motor vehicles, glass and armaments with neighbouring Germany accounting for 40 percent of exports. Economic growth is largely driven by domestic demand.

But unemployment is currently running at its highest-ever level, 10 percent.

Czechoslovakia split into the Czech Republic and Slovakia in January 1993 in what was called the "Velvet Divorce," following on the peaceful "Velvet Revolution" that ended communism in 1989.

The country is governed by the Social Democrat-led coalition of Prime Minister Vladimir Spidla. Last year playwright president Vaclav Havel stepped down after 13 years in office, first as leader of Czechoslovakia then serving two terms as president of the Czech Republic. His successor is Havel's former political rival Vaclav Klaus.

The landlocked country is bordered by Germany, Poland, Austria and Slovakia.

It proudly boasts the record of the world's largest beer-drinking nation, consuming 161 litres per capita last year.

A recent poll showed that less than 10 percent of Czechs felt their situation would improve post-accession and Prague has repeatedly expressed concerns about restrictions on its workers from the existing member states.

The Czech Republic is 38.8 percent atheist and 95 percent Czech and three percent Slovak. Its people speak Czech, a Slavic language closely related to Slovak spoken in Slovakia.

But one thorny issue from the past lingers; the expulsion of 2.5 million ethnic Germans and Hungarians from then Czechoslovakia after the end of World War II who had supported Hitler's annexation of the border regions.

Concerns also remain about the lagging reforms of the country's judicial system.