Published by Global Banking & Finance Review®
Posted on February 26, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleBabis says Czechia is not moving toward higher defence spending despite rising NATO targets. The 2026 budget aims for 2.1% of GDP, below a prior 2.35% plan, while the Ukraine ammo initiative remains donor-funded.
PRAGUE, Feb 26 (Reuters) - The Czech Republic is "certainly not" setting a path to reach higher defence spending levels despite rising NATO targets, Prime Minister Andrej Babis said on Thursday, marking a clear departure from the previous government's policy.
Babis' government, led by his populist ANO party, took power in December and is pushing a re-worked 2026 budget plan through parliament. It has faced some criticism over lower defence spending, however.
Babis said before last year's election that a NATO agreement to gradually raise defence spending to 5% of gross domestic product was unrealistic.
Asked in an online interview on Thursday on news server Denik.cz if the government was on a path to a core defence spending target of 3.5% of GDP set in the NATO agreement, Babis said: "Certainly not."
"Our priority is the health of our citizens, so that they live long lives," he said.
Babis won last year's election with promises to concentrate more on people's standard of living by boosting wages, cutting some taxes and adding new benefits.
The new government's 2026 budget proposal cuts spending on defence to 2.1% of GDP versus the previous centre-right cabinet's plan for 2.35% - a plan Defence Minister Jaromir Zuna said on Wednesday would not hurt army modernisation projects.
The previous administration - a staunch supporter of Kyiv in the Ukraine-Russia war - had sought for defence spending to gradually rise to 3% of GDP by 2030. Its former prime minister, Petr Fiala, said in reaction to Babis' comments on Thursday that security should be a leading concern for the government.
The new government has continued a Czech-led initiative sourcing large-calibre ammunition for Ukraine and financed by donations from countries like Germany. But it has stopped providing budget funds itself to the programme.
(Reporting by Jason Hovet; Editing by Hugh Lawson)
Andrej Babis says the Czech Republic is not pursuing higher defence spending. The 2026 budget targets 2.1% of GDP, departing from a previous plan of 2.35%.
Defence outlays are a major line in the national budget. Holding spending at 2.1% of GDP affects fiscal priorities such as healthcare, wages, and tax policy.
The Czech-led ammunition initiative for Ukraine continues with external donor funding, but the government says it will not allocate new budget funds to the program.
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