Following the Battle of Mohács in 1526, the Czech lands fell under Habsburg rule, becoming part of the Austrian Empire in 1804 and ofAustria–Hungary in 1867. The independent Republic of Czechoslovakia was formed in 1918, following the collapse of the Austro-Hungarian empire after World War I. After the Munich Agreement, German occupation of Czechoslovakia and the consequent disillusion with theWestern response and gratitude for the liberation of the major portion of Czechoslovakia by the Red Army, the Communist party won plurality (38%) in the 1946 elections. In a 1948 coup d'état, Czechoslovakia became a communist-ruled state. In 1968, the increasing dissatisfaction culminated in attempts to reform the communist regime. The events, known as the Prague Spring of 1968, ended with an invasion by the armies of the Warsaw Pact countries (with the exception of Romania); the troops remained in the country until the 1989Velvet Revolution, when the communist regime collapsed. On 1 January 1993, Czechoslovakia peacefully dissolved into its constituent states, the Czech Republic and Slovakia.
The Czech Republic is a pluralist multi-party parliamentary representative democracy. President Václav Klaus is the current head of state. The Prime Minister is the head of government (currently Jan Fischer). The Parliament has two chambers: the Chamber of Deputies and theSenate. It is also a member of the Organisation for Economic Co-operation and Development (OECD), the Council of Europe and theVisegrád Group.
The Czech Republic made economic reforms such as fast privatizations. Annual gross domestic product growth has recently been around 6%. The country is the first former member of the Comecon to achieve the status of a developed country (2006), according to the World Bank. The Czech Republic also ranks top among the former Comecon countries in the Human Development Index.