Published by Global Banking & Finance Review®
Posted on April 16, 2026
2 min readLast updated: April 16, 2026
Add as preferred source on GoogleCzech Prime Minister Andrej Babis insists the Czech Republic will fulfill its NATO defence commitments despite concerns its 2026 budget—allocating 1.7% of GDP to the Defence Ministry—falls short of NATO’s 2% target unless broader spending is counted.
PRAGUE, April 16 (Reuters) - Czech Prime Minister Andrej Babis, facing pressure at home over defence spending targets, said the country will do everything it can to fulfill its NATO commitments, following a meeting with the military alliance's secretary general in Prague.
"We consider our defence capability and our obligations within NATO to be very important and a priority," Babis said at a news conference alongside NATO chief Mark Rutte.
"We will definitely do everything to fulfil these obligations."
Babis' populist ANO party pushed through a revamped 2026 budget plan after taking power in December and cut the defence ministry's allocation to 154.8 billion crowns ($7.49 billion), or 1.73% of gross domestic product, lower than the previous government's proposal.
Babis' government says in total it has budgeted nearly 2.1% of GDP for defence, but the country's fiscal watchdog and President Petr Pavel - a former NATO official - warned items like road projects may not meet NATO criteria, leaving spending below an obligatory commitment for 2% of GDP.
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Babis has said the country would meet its 2% target but was not on a path to higher targets agreed among NATO members last year, citing other priorities like healthcare.
Rutte did not directly address the Czech level of spending on Thursday but said defence spending was discussed in the meeting.
"Increasing defense spending is essential so that we have the forces, the resources and the capabilities to keep our people safe," he said at a news conference.
European NATO countries pledged last year to raise spending to 3.5% of GDP plus 1.5% on other defence-relevant investments over the next decade.
NATO allies will hold a July summit in Ankara which will look at how the alliance is delivering on its plans, Rutte said.
U.S. Ambassador to NATO Matthew Whitaker said last month after the Czech lower house approved the new budget that all allies "must pull their weight".
($1 = 20.6660 Czech crowns)
(Reporting by Jason Hovet)
The Czech Republic's 2026 budget allocates 1.73% of GDP to defence, below the NATO target of 2%.
Prime Minister Andrej Babis stated the Czech government will do everything possible to fulfill NATO spending commitments.
Yes, some items like road projects may not meet NATO criteria, risking actual spending falling below the 2% commitment.
The July NATO summit in Ankara will review alliance members' progress towards agreed spending plans, including the Czech Republic's.
PM Babis cited other priorities such as healthcare as reasons for not targeting higher defence spending levels above 2%.
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