By Ray Furlong BBC, Prague

Vaclav Havel has made his last-ever New Year speech as Czech president, noting that a whole generation has now grown up whose experiences were not deformed by life under communism.

Mr Havel leaves office in February after 13 years in power.

HAVEL'S PRESIDENCIES

Dec 89 - Elected Czechoslovak president July 92 - Resigns as Czechoslovak president Jan 93 - Elected Czech president Jan 98 - Re-elected Czech president

He also noted that this year's New Year's Day marks the 10th anniversary of the division of Czechoslovakia.

That was something he originally opposed but now says was a good thing.

Vaclav Havel has often used his New Year speeches to criticise the direction Czech society is going.

But in this, his last-ever speech, his message was upbeat.

The Czech Republic has become a respected European democracy, a member of Nato, he said, adding that a whole new generation of Czechs had grown up who had never been deformed by life under communism.

He also pointed out that the country is on the verge of joining the European Union and predicted a large turnout in a referendum to be held later this year.

Division welcomed

Mr Havel was swept to power 13 years ago after the collapse of the communist regime, and has a unique standing in Czech politics.

It is still unclear who will replace him as president.

An election in parliament later this month may produce no winner, leaving the country without a head of state.

That happened when Mr Havel stepped down in protest at the division of Czechoslovakia 10 years ago.

Commenting on the anniversary in his speech, Mr Havel recalled that the country was divided without a referendum which should have been held.

But despite this, he said it was good that division had occurred, and that relations between Czechs and Slovaks had since improved.