Abstract
Since 1989 the countries of Central and Eastern Europe have experienced major changes in their political and economic structures. The most important one from the political point of view is the transition from an authoritarian system to a multi‐party parliamentary democracy, and from an economic perspective, from a centrally planned economy towards a market economy. In foreign policy these countries proclaimed the popular slogan ‘Back to Europe’. And Europe and the EU have both played crucial roles in furthering democratisation and modernisation in the region. Following the pre‐accession strategy for full membership in the EU, the Czech Republic is now closer to becoming a functioning and stable democracy with a prosperous market economy, and a modern effective state. However, the post‐Communist transition to democracy in the Czech Republic has also suffered a number of drawbacks. Problematic voucher privatization, the as yet unfinished transformation of big companies, the absence of a clear legal framework, and the lack of the reform of civil service, are the most pressing problems still to be solved.