6 economic protocol, Ankara
planned to provide around $700 million to the "TRNC." Agriculture
and services, together, employ more than half of the work force.

Czech Republic
The Czech Republic is one of the most stable and
prosperous of the post-Communist states of Central and Eastern
Europe. Growth in 2000-05 was supported by exports to the EU,
primarily to Germany, and a strong recovery of foreign and domestic
investment. Domestic demand is playing an ever more important role
in underpinning growth as interest rates drop and the availability
of credit cards and mortgages increases. The current account deficit
has declined to around 3% of GDP as demand for Czech products in the
European Union has increased. Inflation is under control. Recent
accession to the EU gives further impetus and direction to
structural reform. In early 2004 the government passed increases in
the Value Added Tax (VAT) and tightened eligibility for social
benefits with the intention to bring the public finance gap down to
4% of GDP by 2006, but more difficult pension and healthcare reforms
will have to wait until after the next elections. Privatization of
the state-owned telecommunications firm Cesky Telecom took place in
2005. Intensified restructuring among large enterprises,
improvements in the financial sector, and effective use of available
EU funds should strengthen output growth.

Denmark
The Danish economy is undergoing strong expansion fueled by
private consumption growth, low unemployment, rising real wages, and
a strong increase in house prices. This thoroughly modern market
economy features high-tech agriculture, up-to-date small-scale and
corporate industry, extensive government welfare measures,
comfortable living standards, a stable currency, and high dependence
on foreign trade. Denmark is a net exporter of food and energy and
enjoys a comfortable balance of payments surplus. Government
objectives include streamlining the bureaucracy and further
privatization of state assets. The government has been successful in
meeting, and even exceeding, the economic convergence criteria for
participating in the third phase (a common European currency) of the
European Economic and Monetary Union (EMU), but Denmark has decided
not to join 12 other EU members in the euro. Nonetheless, the Danish
krone remains pegged to the euro. Economic growth gained momentum in
2004