On December 3, 2026, Czech lawmakers approved the nation’s budget for the upcoming year, designating 1.7% of the country’s GDP to defense spending. This allocation comes despite calls from the United States and President Petr Pavel to adhere more closely to NATO’s defense spending targets.
Budget Breakdown and NATO Commitments
The lower house of the Czech Parliament voted 104-87 in favor of nearly 155 billion koruna (approximately $7.4 billion) for the Ministry of Defence. However, this figure would only reach the NATO benchmark of 2% of GDP if one were to include allocations for defense-related projects from other government ministries.
Since a 2014 commitment, NATO member countries have been urged to spend at least 2% of their GDP on defense. At the Hague summit in 2025, the alliance, under pressure from the previous Trump administration, set an even higher target of 5% of GDP by 2035, which breaks down to 3.5% on core defense needs and 1.5% for security-related expenditures.
Political Perspectives on Defense Spending
Prime Minister Andrej Babiš emphasized the difficulties of the current state budget, noting that other urgent priorities, such as healthcare, must also be addressed. He pointed out that the inherited budget deficit from the previous administration restricts the potential for increased defense funding.
Earlier in the month, President Pavel, a retired military general, advocated for a rise in defense spending, highlighting the ongoing full-scale invasion of Ukraine by Russia. In his words,
“Today, there is not a single justifiable reason for defense and security spending to stagnate.”
He stressed that Europe is confronting its most severe military conflict in 80 years.
Although the budget has been passed, it still requires the president’s signature. Pavel confirmed he would sign it as he considers the budgetary process to be the domain of the government.
Babiš returned to the premiership after his ANO party secured victory in last October’s elections, forming a coalition with the Eurosceptic Freedom and Direct Democracy party (SPD) and the Motorists for Themselves party (AUTO). The Czech Republic has been a member of NATO since 1999.