In November 1989, Czechoslovakia returned to democracy through a peaceful “Velvet Revolution”. However, Slovak national aspirations strengthened until on January 1, 1993, the country peacefully split into the independent Czech Republic and Slovakia. Both countries went through economic reforms and privatisations, with the intention of creating a market economy.

Voters embraced fast economic reforms and the success enabled the Czech Republic to become the first post-communist country to receive an investment-grade credit rating by international credit institutions. Most state-owned heavy industries were privatized through the voucher privatization systems. Czech Republic saw modest budget deficits, low unemployment, a positive balance of payments position, a stable exchange rate, a shift of exports from former communist economic bloc markets to Western Europe

From 1991 the Czech Republic (originally as part of Czechoslovakia, and now in its own right) has been a member of the Visegrad Group and from 1995 of the OECD. The Czech Republic joined NATO on March 12, 1999 and the European Union on May 1, 2004.