Despite the city's turbulent history, Prague's progress in recent years has been more stately than revolutionary. The booming tourism sector and a solid industrial base have left its citizens in better economic shape than the rest of the country. Unemployment is minimal, the shops are full, and façades that were crumbling a decade ago have been given face-lifts. Big new shopping malls and multiplex cinemas are popping up all over the place, there's a huge new sporting and events arena, the metro system is being extended and a new floodprotection system has been installed.

There are downsides, of course. Rumours of corruption in City Hall are rife, affordable housing remains in short supply, the health system is under strain, and traffic congestion and crime rates are up. Despite this, the mood of the city remains buoyant.

Václav Havel's 13 years as president came to an end in February 2003, when his place was taken by hard-nosed, right-wing economist Václav Klaus. More change was to come: the decision on whether the Czech Republic should join the European Union was settled by a referendum - with 77% voting in favour - and on 1 May 2004 the Czech Republic became a member of the EU.