Economic development: The country has undergone significant changes in terms of economic and legal reforms bringing it more in line with the rest of Europe.

The Czech Republic has a strategic location in the geographical heart of Europe making it extremely accessible from both the established western markets and emerging eastern markets.

Highly educated and skilled workforce – The Czech Republic offers a workforce with a very high percentage of people educated to University standard.

Czech Republic ranks among countries with the lowest average labor cost.

The country’s current rate of corporate tax is 26% and it is understood that the finance ministry has plans to lower the tax rate even further by 2006 in order to strengthen its position and remain the most competitive in the region.

The top rate of income tax at 32% is higher than the 2005 rate of corporation tax of 26% (to reduce to 24% in 2006)

Currently, the Czech Republic is still considered to be transitional in its adoption of the Euro, and is not yet a member of the Euro zone.

The media have been unable to free themselves from political influence.

Overcomplicated and improper general legislative framework (including tax system) plus poor law enforcement.

The level of economic activity depends on the main trading partners (Germany with more than a 1/3 of the total trade, then Slovakia, Austria and the USA).