Prague flourished during the 14th century reign (1346–1378) of Charles IV, Holy Roman Emperor and the king of Bohemia of the new Luxembourg dynasty. As King of Bohemia and Holy Roman Emperor, he transformed Prague into an imperial capital. He ordered the building of the New Town (Nové Město) adjacent to the Old Town and laid out the design himself. The Charles Bridge, replacing the Judith Bridge destroyed in the flood just prior to his reign, was erected to connect the right bank districts to the Malá Strana and castle area. On 9 July 1357 at 5:31 am Charles IV personally laid the first foundation stone for the Charles Bridge. The exact time of laying the first foundation stone is known because the palindromic number 135797531 was carved into the Old Town bridge tower having been chosen by the royal astrologists and numerologists as the best time for starting the bridge construction. In 1347 he founded Charles University which remains today the oldest university in Central Europe.
He began construction of the Gothic Saint Vitus Cathedral, within the largest of the Prague Castle courtyards, on the site of the Romanesque rotunda there. Prague was elevated to an archbishopric in 1344, the year the cathedral was begun.
The city had a mint and was a centre of trade for German and Italian bankers and merchants. The social order, however, became more turbulent due to the rising power of the craftsmen's guilds (themselves often torn by internal fights), and the increasing number of poor people. The Hunger Wall, a substantial fortification wall south of Malá Strana and the Castle area, was built during a famine in the 1360s. The work is reputed to have been ordered by Charles IV as a means of providing employment and food to the workers and their families. Prague was at that time the third-largest city in Europe.
Charles IV died in 1378. During the reign of his son, King Wenceslaus IV (1378–1419), a period of intense turmoil ensued. During Easter 1389, members of the Prague clergy announced that Jews had desecrated the host (Eucharistic wafer) and the clergy encouraged mobs to pillage, ransack and burn the Jewish quarter. Nearly the entire Jewish population of Prague (3,000 people) perished.
Jan Hus, a theologian and rector at the Charles University, preached in Prague. In 1402, he began giving sermons in the Bethlehem Chapel. Inspired by John Wycliffe, these sermons focused on what were seen as radical reforms of a corrupt Church. Having become too dangerous for the political and religious establishment, Hus was summoned to the Council of Constance, put on trial for heresy, and burned at the stake in Constanz in 1415.
Four years later Prague experienced its first defenestration, when the people rebelled under the command of the Prague priest Jan Želivský. Hus' death, coupled with Czech proto-nationalism and proto-Protestantism, had spurred the Hussite Wars. Peasant rebels, led by the general Jan Žižka, along with Hussite troops from Prague, defeated King Sigismund, in the Battle of Vítkov Hill.
In the following two centuries, Prague strengthened its role as a merchant city. Many noteworthy Gothic buildings were erected and Vladislav Hall of the Prague Castle was added.
World War I ended with the defeat of the Austro-Hungarian Empire and the creation of Czechoslovakia. Prague was chosen as its capital and Prague Castle as the seat of president (Tomáš Masaryk). At this time Prague was a true European capital with highly developed industry. By 1930, the population had risen to 850,000.In 1989, after the riot police beat back a peaceful student demonstration, the Velvet Revolution crowded the streets of Prague and the Czechoslovak capital benefited greatly from the new mood. In 1993, after the split of Czechoslovakia, Prague became the capital city of the new Czech Republic. In the late 1990s Prague again became an important cultural centre of Europe and was notably influenced by globalisation. In 2000 anti-globalisation protests in Prague (some 15,000 protesters) turned violent during the IMF and World Bank summits. In 2002 Prague suffered from widespread floods that damaged buildings and also its underground transport system. Prague launched a bid for the 2016 Summer Olympics, but failed to make the candidate city shortlist. Due to low political support, Prague's officials chose in June 2009 to cancel the city's planned bid for 2020 Summer Olympics as well.
The name Prague is derived from an old Slavic root, praga, which means “ford”, referring to the city's origin at a crossing point of the Vltava river.
The native name of the city, Praha, however, is also related to the modern Czech word práh (threshold) and a legendary etymology connects the name of the city with princess Libuše, prophetess and a wife of mythical founder of the Přemyslid dynasty. She is said to have ordered the city "to be built where a man hews a threshold of his house". The Czech práh might thus be understood to refer to rapids or a cataract in the river, the edge of which could have acted as a means of fording the river – thus providing a "threshold" to the castle. However, no geological ridge in the river has ever been located directly beneath the castle.
Another derivation of the name Praha is suggested from na prazě, the original term for the shale hillside rock upon which the original castle was built. At that time, the castle was surrounded by forests, covering the nine hills of the future city – the Old Town on the opposite side of the river, as well as the Lesser Town beneath the existing castle, appeared only later.
Nicknames for Prague have included: Praga mater urbium/Praha matka měst ("Prague – Mother of Cities") in Latin/Czech, Stověžatá Praha ("City of a Hundred Spires") based on count by 19 century mathematician Bernard Bolzano. Today's count is estimated at 500.
Since the fall of the Iron Curtain, Prague has become one of Europe's (and the world's) most popular tourist destinations. It is the sixth most-visited European city after London, Paris, Rome, Madrid and Berlin. Prague suffered considerably less damage during World War II than some other major cities in the region, allowing most of its historic architecture to stay true to form. It contains one of the world's most pristine and varied collections of architecture, from Art Nouveau to Baroque, Renaissance, Cubist, Gothic, Neo-Classical and ultra-modern. Some popular sights include:
Some of the significant cultural institutions include the National Theatre (Národní Divadlo) and the Estates Theatre (Stavovské or Tylovo or Nosticovo divadlo), where the première of Mozart's Don Giovanni and La clemenza di Tito was held. Other major cultural institutions are the Rudolfinum which is home to the Czech Philharmonic Orchestra and the Municipal House which is home to the Prague Symphony Orchestra. The Prague State Opera (Státní opera) performs at the Smetana Theatre.
There are many world class museums in Prague including the National Museum (Národní muzeum), the Museum of the Capital City of Prague, the Jewish Museum in Prague, the Alfons Mucha Museum, the African-Prague Museum, the Museum of Decorative Arts in Prague the Náprstek Museum (Náprstkovo Muzeum, the Josef Sudek Gallery, the National Library and the National Gallery
There are hundreds of concert halls, galleries, cinemas and music clubs in the city. Prague hosts Music Festivals including the Prague Spring International Music Festival, the Prague Autumn International Music Festival and the Prague International Organ Festival. Film festivals include the Febiofest, the One World and Echoes of the Karlovy Vary International Film Festival. Prague also hosts the Prague Writers' Festival, the Prague Folklore Days, Prague Advent Choral Meeting g, the Summer Shakespeare Festival, the Prague Fringe Festival, the World Roma Festival as well as hundreds of Vernissages and fashion shows.
Many films have been made at the Barrandov Studios. Hollywood movies set in Prague include Mission Impossible, Blade II and xXx. Other Czech films shot in Prague include Empties and The Fifth Horseman is Fear. Also, the music video to "Diamonds from Sierra Leone" by Kanye West was shot in Prague, and features shots of the Charles Bridge and the Astronomical Clock, among other famous landmarks. Prague was also the setting for the film "Dungeons and Dragons" in 2000. The music video "Silver and Cold" by AFI, an American rock band, was also filmed in Prague.
The Prague restaurant Allegro received the first Michelin star in the whole of post-Communist Eastern Europe.
With the growth of low-cost airlines in Europe, Prague has become a popular weekend city destination allowing tourists to visit its many museums and cultural sites as well as try its famous Czech beers and hearty cuisine.
Prague sites many buildings by renowned architects, including Adolf Loos (Villa Müller), Frank O. Gehry (Dancing House), or Jean Nouvel (Golden Angel).
Prague's economy accounts for 25% of the Czech Republic's GDP making it the highest performing regional economy of the country. According to the Eurostat, as of 2007, its GDP per capita in purchasing power standard is 42,800 €. Prague ranked the 5th best-performing European NUTS 2 level region at 172 % of the EU-27 average.
Since 1990, Prague economy structure has shifted from industrial to service-oriented. Industry is present in sectors such as pharmaceuticals, printing, food processing, manufacture of transport equipment, computer technology and electrical engineering. In services sector, most significant are financial services, commercial services, trade, restaurants and accommodations and public administration. Services account for around 80% of employment. There are 800,000 employees in Prague, including 120,000 commuters. The number of (legally registered) foreign residents in Prague has been increasing in spite of the country's economic downturn. As of March 2010, 148,035 foreign workers were reported to be living in the city making up about 18% of the workforce, up from 131,132 in 2008. Approximately one-fifth of all investment in the Czech Republic takes place in Prague city.
Almost one-half of the national income from tourism is spent in Prague. The city offers approximately 73,000 beds in accommodation facilities, most of which were built after 1990, including almost 51,000 beds in hotels and boarding houses capable of satisfying all categories of visitors.
From the late 1990s to late 2000s, Prague was a popular filming location for international productions and Hollywood, Bollywood motion pictures. A combination of architecture, low costs and the existing motion picture infrastructure have proven attractive to international film production companies.
The modern economy of Prague is largely service and export-based and, in a 2010 survey, the city was named the best city in East Europe for business.
In 2005 Prague was deemed among the three best cities in eastern Europe according to the Economist's livability rankings. The city was named as a top-tier nexus city for innovation across multiple sectors of the global innovation economy, placing 29th globally out of 289 cities, ahead of Brussels and Helsinki for innovation in 2010 in 2thinknow annual analysts Innovation Cities Index.
In the Eurostat research, Prague ranked fifth among Europe's 271 regions in terms of gross domestic product per inhabitant, achieving 172% of the EU average. It ranked just above Paris and well above the Czech Republic as a whole, which achieved 80% of the EU average.
Prague is also the site of some of the most important offices and institutions of the Czech Republic.
The longest city tunnel in Europe with a proposed length of 5.5 kilometres and five interchanges is now being built to relieve congestion in the north-western part of Prague. Called Tunel Blanka and to be part of the Municipal Ring Road, it is estimated that it will now cost — after several increases — 38 billion CZK. Construction started in 2007 and the tunnel is scheduled to be completed in 2013/2014.
There is also an ongoing project to create a ring road leading around the outskirts of the city. The southern part of this road (with a length of more than 20 kilometres / 12 miles) was opened on 22 September 2010.