Introduction In the international arena, the Czech Republic strives to act as a democratic and politically, economically and socially stable Central European country, pursuing not only its own particular interests but also assuming its share of responsibility for the development of Europe and the entire international community. The international environment in which the Czech Republic pursues its foreign policy is a product of the interaction of a number of factors – sovereign countries, associations of countries at different levels of integration in international organisations and institutions, and non-governmental entities, ranging from non- governmental organisations to various non-transparent lobbying groups not respecting the rules of international relations, including organised crime groups and terrorist organisations. The role, import and influence of these factors fluctuate, often within a very short time span. Following the end of the cold war and the disintegration of the bi-polar world, and as a result of changes in the security environment, the intensification of globalisation processes, the liberalisation of the global economy, the increasing mutual dependence of countries, and the accelerating development of science and technology, there has been significant growth in the importance of multilateral co-operation within the framework of international organisations and integration groupings. At the same time, in the face of new threats posed by certain non- transparent entities, and terrorist organisations in particular, all international mechanisms designed to protect against such dangerous phenomena are rapidly gaining in importance. The Czech Republic, as a country which, by size and population, ranks among medium- sized countries in the European area, and as a country with an open economy, a high proportion of exports and services in the generation of its gross domestic product, and with limited natural resources, is markedly dependent on international co-operation. Of principal significance for the consolidation and stabilisation of the Czech Republic’s international position and security are its membership of the North Atlantic Treaty Organisation (NATO) and accession to the European Union (EU), both of which are accomplishments achieved by the country’s foreign policy priorities since the establishment of the Czech Republic as an independent state. These organisations provide new opportunities for the Czech Republic to pursue its interests. The Government formed after the parliamentary elections in June 2002 has issued a policy statement acknowledging the continuity of the Czech Republic’s foreign policy and 1 defining the country’s accession to the EU as one of its priorities, subject to the negotiation of optimal conditions. In 2002, substantial progress was made in fulfilling the top foreign policy objective of the Czech Republic – to complete negotiations on the terms and conditions for the country’s accession to the European Union. The negotiations were concluded on 13 December 2002 at the Copenhagen Summit of the European Council. At the same time, nine other candidate countries completed their respective accession negotiations (Poland, Hungary, Slovakia, Slovenia, Estonia, Lithuania, Latvia, Cyprus and Malta). The completion of the political and technical stages of the Czech Republic’s accession preparations in 2002 was eased considerably by the Spanish and Danish Presidencies of the EU Council, whose chief priority was to complete the negotiation process and set a timetable for enlargement. The successful completion of negotiations was preceded by the consent of the European Council in Seville to admit the ten candidate countries in 2004 and a positive evaluation in the European Commission’s Regular Report of October 2002, which noted that the Czech Republic was prepared for membership of the EU. In 2002, the European Parliament and the European Commission ordered legal analyses of post-WWII Czechoslovak legislation, the findings of which consistently confirmed that these regulations were not in conflict with EC/EU laws and would not constitute part of the accession negotiations. Nevertheless, the European Parliament has indicated that a political gesture from the Czech Republic relating to the events following the end of the Second World War would be appreciated. During discussions at the Copenhagen Summit in December 2002, the Czech Republic closed those chapters which had still been open until then (Agriculture, Finance and Budgetary Provisions, Transport Policy, Institutions, and Other). The final stages of these discussions focused primarily on the Finance and Budgetary Provisions and Agriculture chapters. During the Copenhagen negotiations, the Czech Republic managed to obtain an additional EUR 83 million for the Finance and Budgetary Provisions chapter. Therefore the total budgetary compensation payable to the Czech Republic in 2004-2006 will be EUR 747 million (approximately CZK 23.3 billion). In addition to this, the Czech Republic has been 2 given permission to draw on EUR 100 million from the Structural Funds as an item eligible for use in the central government budget. Under the sensitive chapter 7, Agriculture, the Czech Republic negotiated quotas equal to or above the level of realistic indicators of production and consumption. The Czech team succeeded in obtaining an extra CZK 3 billion from EU funds for the years 2004-2006, and therefore the agriculture sector will now receive a total of CZK 14.4 billion. During the talks, the Czech Republic negotiated favourable conditions enabling it to assert itself as a competitive and non-discriminatory member of the EU. Therefore a sound basis was formed for the successful realisation of the referendum on the Czech Republic’s membership of the EU, held in June 2003, and for the enlargement ratification process in EU Member States during 2003. The Czech Republic intends to continue its active involvement in the debate on the future of the EU at the European Convention, the subsequent Inter-governmental Conference, and other related forums. The Convention began its work on 28 February 2002, with three Czech representatives in attendance (one representative of the Government and two representatives of the Parliament of the Czech Republic). Based on a proposal by the representative of the Czech Government, the presidium of the Convention has been extended to include one representative of the candidate countries (a Slovenian representative was elected). In a debate at the Convention, the Czech Government promoted further deepening and broadening of the economic and political integration of Europe and the reinforcement of its democratic nature while respecting the national and cultural uniqueness of the individual countries and regions on the basis of the subsidiarity principle. In defending its interests and promoting its positions, the Czech Republic intends to develop co-operation with countries pursuing similar interests. The Czech Republic’s accession to the EU is a matter that concerns all governmental authorities. The Ministry of Foreign Affairs (MFA) has acted as the coordinator in this respect, co-operating closely with other ministries through the Working Committee on the Integration of the Czech Republic into the EU, which held seven meetings in 2002. Since spring 2002, a number of Czech non-governmental organisations and interest groups have joined in with the discussion on the future of Europe within the framework of the National Forum, under the auspices of the Senate of the Parliament of the Czech Republic. During the year, three plenary sessions took place, dedicated to the reform of European 3 institutions, decision-making processes within the Union, and the distribution of responsibilities between the EU and its Member States. In December 2002, the Czech Republic filed its application for admission to the European Economic Area (EC and EFTA countries). In terms of the involvement of the Czech Republic in international trade, EU countries were the Czech Republic’s most important economic partners in 2002. Czech exports to the EU amounted to CZK 856.4 billion FCO (i.e. 68.4%), and imports stood at CZK 798.3 billion (60.2%). The trade balance was highly active, amounting to CZK 58.1 billion in the period in question. The country’s most important trading partner was Germany, which accounted for 34.4% of all Czech foreign trade activities with EU countries, followed by Austria (4.9%), France and Italy (4.7% each) and the United Kingdom (4.4%). GDP per capita based on purchasing power parity (USD 15,870) amounted to 62% of the average value in EU countries. More than 90% of all foreign direct investments originated from EU countries, while the amount of investments per capita in international prices came to 84% of the level in EU countries. As part of its communication strategy to promote the EU, the Government decided to launch a national information campaign in 2002. In September, the Ministry of Foreign Affairs drafted a document entitled “Main Directions of the Czech Republic’s Communication Strategy prior to Accession to the EU”. The aim of the strategy was to provide the citizens of the Czech Republic with sufficient information in the run-up to the referendum on the country’s accession to the EU and, as part of the external communication strategy, to present the Czech Republic in the EU Member States as a candidate country quite capable of assuming obligations ensuing from membership of the Union and fulfilling its share of