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The Czech Republic's Record in Meeting NATO's Standards

Fact sheet prepared by the Bureau of European and Canadian Affairs, August 15, 1997.

Reintegration with the West, from which then-Czechoslovakia was torn in 1938 by Nazism and again in 1948 by communism, is the Czech Government's top foreign policy priority. Specifically, this means securing early membership in two institutions: the European Union (EU) and NATO. Here is how the Czech Republic now stands, based on the criteria for new members laid out in NATO's September 1995 Enlargement Study.

Democratic Government

In the seven-plus years since the "Velvet Revolution" that ended communist rule, political institutions have matured rapidly. The Czech people enjoy, once again, the benefits of a fully functioning parliamentary democracy, including free speech, free assembly, and a vigorous, free press.

The year 1996 saw two national elections, one in late spring for the lower house of parliament and a second in the fall for the newly created Senate. Both elections were fully free and fair, and the results of the first returned Prime Minister Klaus to office at the head of a three-party minority government.

The Constitution provides for an independent judiciary, which is impartial and independent in practice. Judges are neither fired nor transferred for political reasons. A separate Constitutional Court rules on the constitutionality of legislation.

Internationally recognized human rights are guaranteed in the Czech Constitution. President Vaclav Havel, himself a former political prisoner of the previous communist regime, is a world-renowned advocate of human rights and social justice.

Free Market Economy

Tight fiscal and monetary policies, liberalization of trade and prices, and rapid privatization of state enterprises have been hallmarks of the Czech Republic's transformation from a centrally planned economy. As a result, real GDP has been rising since 1994, with GDP per capita now approximately $5,100. Inflation is below 9%, and unemployment remains low, at about 3.5%.

The economic picture is not entirely unblemished, however. Significant trade and current account deficits have emerged, and the financial sector needs additional reform and improved oversight. The government recently increased capital markets regulation and instituted fiscal austerity measures to attack the growing trade deficit, stabilize the currency, and address investors' concerns.

The Czech Republic's integration into the world economy has moved forward rapidly. The country entered the OECD in December 1995, the first former communist country to do so, and has concluded an association agreement with the EU, as well as free trade agreements with the members of the European Free Trade Area and the Central European Free Trade Area. The Czech Republic is a member of the WTO, IMF, World Bank, and EBRD, and applied for EU membership in 1996.

Relations With Neighbors

The Czech Republic enjoys very good relations with all its neighbors; none of its international borders is in dispute.

Bilateral ties with Poland are excellent and are marked by particularly close cooperation in the defense and foreign policy spheres. At their January 1997 meeting, Czech Prime Minister Klaus and Polish Prime Minister Cimoszewicz agreed to harmonize their countries' approaches to NATO and EU membership.

Government-to-government relations with Slovakia are fundamentally sound, although some disputes remain involving the Czech-Slovak customs union and residual matters stemming from the January 1993 split of Czechoslovakia. A small adjustment to the Czech-Slovak border was recently agreed by the two governments. People-to-people ties between the two countries remain extremely close, as many Czechs have relatives in Slovakia and vice-versa.

Czech relations with Germany are very strong, and the two countries cooperate on a wide range of economic, cultural, foreign policy, and security issues. Germany is by far the Czech Republic's leading foreign investor. Germany and the Czech Republic took an important step forward to cement their already close ties in January 1997, when Chancellor Kohl traveled to Prague to sign a Joint Declaration addressing the difficult legacy of the Second World War.

Ties with Austria, the Czech Republic's southern neighbor, are warm, given historical bonds and present-day economics. Austria is the Czech Republic's sixth-largest foreign direct investor, sending $76.6 million northward last year. The only thorny issue between the two states is the Temelin nuclear power plant in the southern Czech Republic, which Austria prefers not be completed.

Civilian Control of the Military

Civilian control of the military is unquestioned in both political and military circles. Under the Constitution, the President is Commander-in-Chief. Governmental authority is exercised through a Minister of Defense, who is a true civilian (i.e., not a current or former career member of the armed forces).

The parliament is an increasingly powerful player on defense issues, and MPs have not been shy in questioning the scope and direction of the government's military restructuring plans and proposed defense budgets. Parliament is expected to enact a defense law this year that will formally give the armed forces their mission and also confirm in law the civilian command structure mandated by the Constitution.

Interoperability With NATO

The Czech military has downsized substantially since the days of the Warsaw Pact and has adopted a modernization strategy whose emphasis is on communication, intelligence, English skills, and command and control. There are 56,000 men and women on active duty.

Czech soldiers served alongside U.S. soldiers in the Gulf War, and a mechanized infantry batallion is currently serving with distinction in the British SFOR sector in Bosnia. The Czechs are among the largest per capita contributors to SFOR. The Czech military has also been active in UN peacekeeping, sending forces to UNTAES in Croatia and a number of other UN operations.

The Czechs were founding members of NATO's Partnership for Peace and have participated in at least 27 joint exercises with the United States and other allies, including a series of exercises with the Texas National Guard. NATO officials have praised Czech military capabilities and the contributions they are making already to Western security.

Using the Czech Government's methodology, defense spending will be at 1.7% of GDP for calendar year 1997, and is set to rise 0.1% per annum until reaching 2.0% of GDP in the year 2000. Using NATO methodology, and factoring in the additional costs of the Czech contribution to SFOR, civil defense, and other military-related expenditures, defense spending for 1997 will be over 2% of GDP.

Country Profile on the Czech Republic

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