ABSTRACT
The transition program implemented in the Czech and Slovak Federal Republic (CSFR) since January 1, 1991, has been uniform in the Czech (CR) and Slovak republics. The CR is interested in a stable exchange rate between the Czech and the Slovak koruna after the Czechoslovak currency union comes to an end — as is expected by June 1993 at the latest. However, growing social tensions might push budgetary policy in the opposite direction and harm coordination policies envisaged by the Czech and Slovak intergovernmental agreements. In contrast, the Slovak government's program differs from it in some respects, such as putting more emphasis on standard methods of privatization, on a sector-specific approach, and on the rights of foreign investors. The inability of Czech and Slovak politicians to find other solutions to growing economic and social tensions brought about the final decision to divide the CSFR into two separate states.
