Widening the skills base and improving labour-market efficiency requires the support of good education. This paper describes the structure of the education system, identifies weaknesses and considers ways to improve performance in light of the ongoing rapidly expanding demand for tertiary level education. The paper discusses ways to modernise the public universities, including the introduction of tuition fees and strengthening co-operation between universities and enterprises. It also suggests mechanisms to widen access to secondary general education and to help the creation of a secondary school system better geared towards increasing tertiary-level enrolment. The paper also considers ways for improving lifelong learning opportunities, for example through better frameworks for qualifications. The challenges in finding room in education budgets for co-financing the allocations of the 2007-13 European Union budget are also discussed. This Working Paper relates to the 2006 OECD Economic Survey of the Czech Republic. (A bibliography is included. Contains 40 footnotes, 5 boxes, 7 figures and 2 tables.)