Finance
Czech minister says lower defence spending in 2026 is no threat to army modernisation
Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: February 24, 2026
Quick Summary
Czech ministers insist a 2026 defence outlay of 2.1% of GDP won’t derail army modernisation, while the top general urges more investment. The Babis government trims direct Ukraine funding but keeps a donor-backed ammo plan.
Czech Minister: 2026 Defense Cuts Won’t Derail Army Modernization
Budget Cuts and Modernisation Assurances
PRAGUE, Feb 24 (Reuters) - Plans to lower defence spending in the Czech budget this year do not put the army's modernisation drive at risk, the defence minister said on Tuesday, while its top general warned that increased investments into security were needed.
Rewritten 2026 Budget Plan
The new government led by Prime Minister Andrej Babis and his populist ANO party took power in December and has rewritten the previous centre-right administration's 2026 budget plan which had pointed to a gradual increase in defence spending.
Shift in GDP Allocation
Babis' government has faced criticism, including from the president, with plans to cut spending on defence to 2.1% of gross domestic product (GDP) - lower than the previous cabinet's proposed 2.35% - in its 2026 budget proposal currently going through parliament.
Capabilities Over Percentages
"Our government is convinced that the security of the state is not measured in percentages of GDP, but by actual defence capabilities, the achievement of which is supported by an adequate defense rate," Defence Minister Jaromir Zuna said at a meeting with army chiefs on Tuesday.
"Lowering the budget for 2026 versus the original plan does not threaten any army modernisation projects underway."
INVESTMENT NEEDED TO MEET DEFENCE CAPABILITIES
Top General’s Risk Assessment
The army's chief of general staff, Karel Rehka, said at the meeting that Russia remained the most urgent risk in Europe. He said more investment was needed to meet required defence capabilities in the future.
"Yes, defence security is expensive. But without it there is no prosperity," he said.
NATO Pressure and Targets
Europe's NATO members are under pressure from U.S. President Donald Trump to raise defence spending.
But Babis told Reuters last year, before the October election, that calls within NATO for member countries to raise their defence spending to 5% of GDP by 2035 were not realistic.
Domestic Fiscal Strategy
His government has sought to use the budget as a tool for growth, boosting wages and lowering some taxes. It has not set out defence spending targets like the last government, and is also scaling back support for Ukraine in its war with Russia.
Ukraine Ammunition Initiative
While Babis' government has continued a Czech-led initiative to source large-calibre ammunition for Ukraine, financed by donations from countries like Germany, it has stopped providing budget funds itself to the programme.
Attribution and Editing Notes
(Reporting by Jason Hovet; Editing by Hugh Lawson)
Key Takeaways
- •Government plans to allocate 2.1% of GDP to defence in 2026, below the prior 2.35% plan.
- •Defence Minister Jaromir Zuna says all army modernisation projects remain on track.
- •Army chief Karel Rehka urges increased investment and flags Russia as the key European risk.
- •NATO pressure on members to raise defence outlays continues; Babis deems 5% by 2035 unrealistic.
- •Prague is scaling back direct budget funding for Ukraine but continues the donor-backed ammo initiative.
Frequently Asked Questions about Czech minister says lower defence spending in 2026 is no threat to army modernisation
1What is the main topic?
The article covers the Czech government’s 2026 defence budget, with ministers asserting that a lower spend will not threaten army modernisation while the army chief calls for more investment.
2How much will Czech defence spending be in 2026?
The government proposes spending 2.1% of GDP on defence in 2026, compared with the previous cabinet’s plan of 2.35%.
3Will the spending cut affect army modernisation?
According to Defence Minister Jaromir Zuna, ongoing modernisation projects are secure. However, Chief of General Staff Karel Rehka says more funding is needed to meet capability goals.
