Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleCzech 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.
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.
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.
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.
"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
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.
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.
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.
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.
(Reporting by Jason Hovet; Editing by Hugh Lawson)
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.
The government proposes spending 2.1% of GDP on defence in 2026, compared with the previous cabinet’s plan of 2.35%.
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.
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