Czecho-Slovak federation set to dissolve
By Peter Anderson
The Czecho-Slovak federation will dissolve on December 31 following an August 26 meeting between leaders of the major parties in the Czech and Slovak republics, the ODS and the HZDS. It is unlikely a referendum will be called to ratify the decision to break up the federation, which was formed in 1918.
"On the 1st of January 1993, the Czech and Slovak republics will become two independent states", HZDS leader Vladimir Meciar announced following the sixth meeting on the future of the federation with leaders of the ODS since June elections, Le Monde reported.
The agreement aims to prevent the so-called "auto-liquidation" of Czechoslovakia, according to Meciar, who referred to chaotic developments at the level of the federal institutions and of inter- republic economic relations.
The accords pave the way for cooperation between the ODS (Civic Democratic Party) and the HZDS (Movement for a Democratic Slovakia) in the Federal Assembly in order to facilitate the quick adoption of laws necessary for the division of the country.
Klaus and Meciar, premiers of their respective republics, told the press they would not hold a referendum to ratify the accords. A three-fifths majority is required in the two houses of the Federal Assembly and in the two parts, Czech and Slovak, of the House of Nations (the federal upper house). It is almost certain the ODS and the HZDS will together have the numbers to pass the laws.
The parties affirmed that the accords provide for the free movement of and equal rights for the citizens of each republic in the other, the free circulation of capital and labour, and a customs union (internal free trade). To limit the costs of a sudden separation, the foreign and defence policies of the two republics will be coordinated.
According to Klaus, the partition of the country will not affect the existence of a common currency in the foreseeable future. The objective is to create two compatible currencies with a fixed rate of exchange, which initially will be one for one.