IN 10 years time the Czech Republic is going to be an economic powerhouse while Ireland will still just be a nice country to visit on the edge of Europe.

This is the view of Enda O'Coineen, an Irish entrepreneur who admits he may have a biased view given that he's investing substantial energy and resources into this central European country which has now formally applied to join the EU.

A 40 year old Galwayman who is probably best known in Ireland for his sailing exploits - he crossed the Atlantic singlehandedly in an inflatable dinghy - O'Coineen is clearly impressed at the ease with which the Czechs have adapted to a market economy since the peaceful 1989 "Velvet Revolution" forced the communists out of power.

"The wonderful thing about here is that everybody wants to do deals. It's an enterprise culture. There are things happening and everybody wants to learn."

For business opportunities, he says, it can't be compared to Ireland which, he believes, is being strangled by a "civil service mentality". The Prague Stock Exchange did not exist four years ago, it now has 1,700 securities. The Dublin Stock Exchange is the second oldest in the world and it has around 90 securities, he says.

O'Coineen spends his time between Prague and Dublin. He set up his first business in Prague three years ago. He now has three companies in the Czech Republic which specialise in financial information services. He also publishes the English language Czech Business Journal as well as publications in the Czech language. He employs 40 full time staff.

"I had a hard look at where I was going in Ireland and I decided that I really wanted to make some capital because you need money to do things if you're an entrepreneur - ideas are no good on their own. If you have an idea and the people are right and the concept is right and you're having fun, then you make money. That's very much the approach I'm taking here and it's working."

O'Coineen is far from alone in deciding to put his faith and cash into the Czech Republic. Of all the former eastern block countries it is seen as the one which is having the least difficulty adapting to a free market economy. This was confirmed on November 28th last when it became the first former communist country to be admitted into the club of developed western economies, the OECD.

One of the key advantages the Czechs have over other central and eastern European countries is a stable political situation. While its president, the socially conscious playwright Vaclav Havel is best known abroad, the constitution gives more power to prime minister Vaclav Klaus.

A right wing conservative, his Civic Democratic Party is the main member of the ruling coalition government which has been consistently pursuing economic reforms since 1992. He is expected to be re elected as prime minister in June.

His capitalist, pragmatic approach was also made evident during the split between the Czech Republic and Slovakia at the start of 1993.

Klaus's performance has clearly impressed the OECD. A spokesman in Paris said the fact that the same people have been at the top for four years and have pushed ahead with economic liberalisation have given the country a distinct advantage over others in central Europe.

The Czechs also benefit from a healthy tourism industry, due mainly to its capital, Prague, one of the best preserved and most beautiful cities in Europe.

The government's success is now reflected in all the main economic indicators. A growth rate of 4 per cent last year is expected to be maintained in 1995. Inflation has been brought under control, falling below 10 per cent and is expected to continue decreasing over the coming years.

Unemployment is remarkably low at just 3.5 per cent in Prague it is practically negligible. However this very low jobless rate has caused concern among some economists.

Mr Svetlana Navarova, international secretary of the opposition Social Democratic Party says the voucher privatisation method which allowed people to buy shares in companies for nominal sums often didn't result in a change in management or increased efficiency.

"I believe the restructuring of industry is ahead of us. There is still overemployment. Mr Klaus has said the economic transformation is finished, but it isn't Individual shareholders cannot really influence things, and in many cases the same people are still running the companies."

Government spokesman Mr Ladislav Mravec admits the privatisation process may not yet be complete.

"I don't think it is fair to say it was just a privatisation on paper. But we can say that the government which organised the privatisation didn't find the final owners, but the first owners, and nobody would say they're necessarily the best owners. In some cases the vision of the first owners may have to be changed."

On the question of entry into the EU, Mr Mravec says the question of whether the country is ready to join is not yet an issue. "We are now ready to discuss entry, but we are just at the start of the process. But within two or three years we should be able to negotiate the conditions."