Czech Republic Approves Budget Falling Short of NATO Defense Spending Goals
PRAGUE – Czech lawmakers on Wednesday approved a 2026 budget that fails to meet NATO’s target of 2% of gross domestic product for defense spending, despite calls for increased investment amid ongoing security concerns in Europe. The budget allocates approximately 155 billion koruna ($7.4 billion) to the Defense Ministry, representing just over 1.7% of the country’s GDP.
The vote, 104-87 in the 200-seat lower house of Parliament, comes from legislators aligned with the government of Prime Minister Andrej Babiš, who returned to power following October elections. Babiš’s ANO movement formed a coalition with the Freedom and Direct Democracy party and the Motorists.
While the Czech Republic has been a NATO member since 1999, and members committed in 2014 to spending at least 2% of GDP on defense, the new budget falls short of that goal. Reaching the 2% target would require including funding for defense-related projects across other ministries, a move that may not be accepted by the alliance.
Babiš defended the budget, citing other government priorities, including “the health of our citizens,” and stating it represented the “maximum possible” allocation given the current state of public finances.
The shortfall has drawn criticism from within the Czech government and from international allies. President Petr Pavel, a retired army general, urged lawmakers to reconsider, highlighting the ongoing Russian invasion of Ukraine. “Today, there is not a single justifiable reason for defense and security spending to stagnate,” he said. Despite his concerns, Pavel indicated he would sign the budget, acknowledging it is the government’s prerogative.
U.S. Ambassador Nicholas Merrick also weighed in, reminding the Czechs of their NATO obligations. “If Czechia fails to fulfill its commitments, it impacts the entire alliance,” Merrick said at a security conference in Prague last week. He warned that the proposed budget could position the Czech Republic as one of the lowest spenders in NATO, demonstrating a negative trend compared to its peers.
At a 2025 summit in The Hague, NATO members, under pressure from the Trump administration, agreed to further increase defense investment to 3.5% of GDP for core defense requirements and an additional 1.5% for defense- and security-related spending by 2035. The Czech budget decision raises questions about the alliance’s collective commitment to these goals.