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A panoramic view of Prague, the capital city of the Czech Republic, as viewed from the Petřín Lookout Tower. The view is approximately 180 degrees, from north on the left to south on the right. The area on which Prague was founded was settled as early as the Paleolithic age. By the year 800 there was a simple fort with wooden buildings, occupying about two-thirds of the area that is now Prague Castle. Prague was an important seat for trading where merchants from all of Europe settled, and it especially flourished during the reign of Charles IV, Holy Roman Emperor.