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The new government was faced with several difficulties, including a distressed and inefficient economic system in need of drastic reform, high unemployment, widespread social discontent, and environmental pollution. Under the 1968 constitution, Czechoslovakia was a federal republic. The two component parts were the Czech Republic, with its capital in Prague, and the Slovak Republic, with its capital at Bratislava. There was a bicameral federal legislature elected every five years. The federal president, who was elected by the legislature, appointed the premier and ministers. Each republic had a council and assembly. The federal government dealt with defense, foreign affairs, and certain economic matters. A strong secessionist movement in Slovakia, however, led to the formal declaration on Aug. 26, 1992, that the Czech Republic and the Slovak Republic would separate into independent states on Jan. 1, 1993, thus dissolving the 74-year-old federation. In response to the imminent breakup, the federal government was dismantled and drafts of new Czech and Slovak constitutions were begun.
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