Czechoslovakia has reached a turning point in her history — not just in the political sense, but also in economic terms. The country has a good chance of achieving a radical improvement in its present situation, but on the other hand it cannot exclude the possibility of continued stagnation. The first signs of an emerging spirit of enterprise are to be seen. The Decin Engineering Works recently broke its connection with the group under which it had been operating and started to look around for more useful partners. Czechoslovak enterprises should not be shy of cooperating with firms abroad, especially since many West European concerns are keenly interested in such cooperation. It is perfectly possible to avoid closures by switching production programs in time. Uncompetitive enterprises can make contracts with the government, stating a time limit within which they intended to catch up with foreign competitors, and if their prospects seem realistic, they can rely on state aid.