Many people, including President Havel, called for a referendum, but even a petition signed by a million Czechoslovaks was not enough for the federal parliament to agree on how to arrange it. In the end Havel resigned from his post, as after repeated attempts by the new parliament he was not re-elected as president. Thus, on 1 January 1993, Czechoslovakia ceased to exist for the second time this century. Prague became the capital of the new Czech Republic, and Havel was promptly elected its first president. Thanks to stringent economic policies, booming tourism and a solid industrial base, the Czech Republic is seeing a strong recovery.
Unemployment is negligible, shops are full and many cities are getting facelifts.
But the newly founded democracy and its radical economic transformation seem to be working. Lonely Planet Publications Pty. Ltd. All rights reserved.