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Czech Republic likely to miss NATO defence-spending target, PM tells FT

Published by Global Banking & Finance Review

Posted on May 31, 2026

2 min read

· Last updated: May 31, 2026

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Czech Republic Likely to Miss NATO Defence-Spending Target, Says PM Babis

Czech Military Spending and NATO Commitments

Current Spending and Government Challenges

May 31 (Reuters) - The Czech Republic will "probably" miss NATO's target to boost military spending to 2% of gross domestic product this year, Prime Minister Andrej Babis said in an interview published on Sunday.

"We will do our best" to meet the pledge, Babis told the Financial Times, but he said his government was grappling with a budget shortfall due to overspending by his pro-EU predecessor.

Disagreements Among Czech Leaders

Czech President Petr Pavel has been at odds with the populist Babis' government over its plans to scale back defence spending in the 2026 budget. Even as he signed the budget into law, Pavel warned in March that military outlays were not corresponding to growing security threats and NATO spending commitments.

Future Goals and Spending Targets

Babis told the newspaper that Prague was committed to meeting NATO's new target of 3.5% of GDP by 2035 but that NATO allies should focus more on improving capabilities than on spending targets, which could be easily manipulated.

International Context and U.S. Position

The U.S. plans to tell NATO it will shrink the pool of American military capabilities available to assist the alliance's European nations in a major crisis, Reuters reported this month.

Pressure from the United States

President Donald Trump has long pressed NATO allies to spend more on their defence, a goal that has become increasingly prominent during Russia's four-year war against Ukraine.

Pentagon's Stance on Defence Subsidies

Pentagon chief Pete Hegseth told fellow defence ministers at an Asian security conference on Saturday: "The era of the United States subsidising the defence of wealthy nations is over. We need partners, not protectorates."

(Reporting by Anusha Shah in Bengaluru; Editing by Kate Mayberry and William Mallard)

Key Takeaways

  • Czech military spending is projected around 1.7–2.1 % of GDP for 2026, below NATO’s 2 % benchmark, with some defense‑related items possibly excluded under NATO definitions (globalbankingandfinance.com)
  • President Petr Pavel and NATO officials have warned that reduced defence spending risks undermining credibility and readiness, while Babis emphasizes capability over rigid spending targets (onvista.de)
  • NATO’s medium‑term goal is to reach 5 % of GDP (3.5 % core defence plus 1.5 % broader security investments) by 2035; Babis says Czechia commits to this but prefers flexible approaches (nato.int)

References

Frequently Asked Questions

Why is the Czech Republic likely to miss NATO's 2% defence spending target?
Prime Minister Andrej Babis cited a budget shortfall due to overspending by a previous government, making it difficult to meet the NATO goal.
What is the new NATO defence spending target for the Czech Republic?
NATO's new target is for member states, including the Czech Republic, to reach 3.5% of GDP by 2035.
What are the differences between the Czech President and Prime Minister regarding defence spending?
President Petr Pavel opposes government plans to cut defence spending, warning it doesn't match increasing security threats, while PM Babis prioritizes capabilities over spending targets.
How is the U.S. changing its approach to NATO defence support?
The U.S. plans to reduce its available military capabilities for European allies in major crises, encouraging NATO members to increase their own defence spending.
How has Russia's war against Ukraine influenced NATO spending targets?
Russia's ongoing war in Ukraine has made increasing defence spending a more prominent goal among NATO allies.

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