Dec 30 (Reuters) - The Czech Republic takes over the
presidency of the European Union from France on Jan. 1.
Its government's wobbly position, sniping by eurosceptic
President Vaclav Klaus, and the latest economic turmoil have all
raised concerns about the small ex-communist state's ability to
lead the bloc effectively.
Here are some details about the Czech Republic:
CAPITAL: Prague
GEOGRAPHY: Area 78,864 sq km (30,450 sq miles), slightly
larger than Ireland. It shares its borders with Germany (to the
west and north), Poland (north), Slovakia (southeast) and
Austria (south).
LANGUAGE: Czech (official)
POPULATION: 10.4 million. Of the main ethnic groups, Czechs
make up 81 percent, Moravians 13 percent and Slovaks 3 percent.
There are also Poles, Germans, Romany (Gypsies), and Hungarians.
RELIGION: Under Communism, religion was suppressed, so
churches suffered and most people are atheist. A once thriving
Jewish community was nearly wiped out in World War Two. Atheists
40 percent, Catholics 39 percent, Protestant 4 percent and
Orthodox 3 percent.
ECONOMY:
-- GDP per head was 82 percent of the EU average in
purchasing power parity standards this year.
-- The Czech economy is highly industrialised and dependent
on exports to the EU, mainly neighbouring Germany. Main
industries are cars and car parts, electronics, machinery.
-- Economic growth slowed to 4.2 percent in Q3, the lowest
in four years due to a collapse in euro zone demand. That could
fall to 2 percent or less next year, versus 6.6 percent in 2007.
-- The biggest Czech firm by sales, Volkswagen's Skoda Auto,
said it would halt work on Fridays in the first half of 2009 due
to the drop in demand. The top Czech industry, car production,
will shed more than 13,500 jobs in the next few months.
-- There have been no banking sector collapses as a result
of the global turmoil but all other firms are being hit hard.
The central bank and the government have cut growth forecasts.
-- Deputy Prime Minister Petr Necas said the Czech central
state budget gap could reach 70 billion crowns ($3.6 billion) in
2009, nearly double the approved amount and unemployment may
rise towards 7 percent in 2009, from 5.3 percent in November.
RECENT HISTORY:
-- The Czech Republic was established on Jan. 1, 1993, as
was Slovakia, after the division of Czechoslovakia. The country
began its transition to a free-market economy in 1989 when
hardline Communist rule was overthrown after more than 40 years.
-- The Czechs joined NATO in 1999 and the European Union on
May 1, 2004.
