In 2009, the economic crisis in the Czech Republic led to record levels of government debt reaching 5.93% of GDP. Attempts at reforms by the Topolánek government were constrained by its weak political position. This resulted in further delays to key reforms. In 1997, over 75,000 shareholders lost investments totaling $79 million in two funds as the crisis deepened. The trade deficit reached $6 billion and state budget turned red for the first time in years as the central bank governor warned of rising inflation and potential flight of foreign investors.

1. 2009 crisis:
In 2009 the economic crisis led to a record level of debt. The budget deficit reached 5.93% of GDP.
The Topolánek government’s attempts at reforming the health, pensions, law enforcement and legal
systems have been constrained by its status as a Minimum Winning Coalition government. The
subsequent fall of the government and the limited mandate of the Fischer caretaker government
resulted in a further delay of key reforms.
The impact on the currency market was more profound, though still relatively mild, with the koruna
falling to 20.25 against the dollar, from 19.91 and to 27.30 against the euro, from 26.91.
1997 crisis:
In March 1997, over 75,000 shareholders lost investments totalling 79 million US dollars in two
investment funds alone: Trend and CS Fondy.(53) Similar stories were to follow, and by April 1997, it
was estimated that 750,000 Czechs, 7% of the population, had lost their investments in shadowy
investment firms governed by inadequate legislation.(54) In the new Czech parlance, more and more
firms were being "tunnelled out."
Spring 1997: The crisis deepens
The trade deficit reached a whopping six billion US dollars and as the state budget dipped into the
red for the first time in three years. Governor of the Czech National Bank Josef Tosovsky was quick
to point to rapid wage increases draining the state coffers and pushing inflation upward. He warned
of the possible flight of foreign investors.