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Czech president adds to criticism of government's defence spending cuts

Published by Global Banking & Finance Review

Posted on March 16, 2026

2 min read

· Last updated: April 1, 2026

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Czech president adds to criticism of government's defence spending cuts
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PRAGUE, March 16 (Reuters) - Czech President Petr Pavel called the new government's reduced defence spending unjustifiable on Monday, adding to criticism that Prime Minister Andrej Babis' 2026 budget

Czech President Adds to Criticism Over Government's Defence Spending Cuts

Controversy Surrounding Czech Defence Budget Reductions

PRAGUE, March 16 (Reuters) - Czech President Petr Pavel called the new government's reduced defence spending unjustifiable on Monday, adding to criticism that Prime Minister Andrej Babis' 2026 budget plans have faced, including from its largest NATO ally, the United States.

Government's 2026 Defence Budget Plan

Babis' populist ANO party took power in December. Last week it pushed through a revamped 2026 budget plan, which cut the defence ministry's allocation to 154.8 billion crowns ($7.28 billion), or 1.73% of gross domestic product, lower than the previous government's proposal.

Disputed Defence Spending Figures

The government says it has budgeted nearly 2.1% of spending for defence, but the country's fiscal watchdog warns that includes items like road projects that may not meet NATO criteria. 

Presidential Criticism and Concerns

Pavel, a former NATO official, criticised the spending levels in a meeting with Finance Minister Alena Schillerova on Monday, the president's office said.

Security Threats and Defence Expenditures

"According to the president, it is not justifiable that defence expenditures stagnate or even decrease at a time of growing security threats," the statement said.

Potential Impact on International Trust

Pavel has previously warned of a loss of trust from allies because of defence spending but has signalled he would not veto the budget.

International Reactions and NATO Commitments

ALLIES MUST PULL WEIGHT, US ENVOY SAYS

Schillerova said the president "did not hide" he wanted more money for defence, but she defended the plans.

Babis has said money was needed elsewhere, like in healthcare. The Czech Republic will still meet its 2% of GDP spending commitment in NATO, he said last week.

US and NATO Pressure on Defence Spending

U.S. Ambassador to NATO Matthew Whitaker said on X last Thursday, responding to the Czech lower house's budget approval, that all allies "must pull their weight", following similar criticism from the U.S. ambassador to Prague.

European NATO countries are under pressure to raise defence spending. Alliance members last year pledged to raise spending to 3.5% of GDP plus 1.5% on other defence-relevant investments over the next decade. But Babis has said the country was not on a path to that new target. 

Exchange Rate Information

($1 = 21.2670 Czech crowns)

(Reporting by Jason Hovet; editing by David Gaffen)

Key Takeaways

  • President Petr Pavel, a former NATO general, publicly criticised the reduction in defence allocations amid growing security concerns and ally expectations (apnews.com)
  • The new budget allocates 154.8 billion crowns (~1.73% of GDP) to defence ministry, below both NATO’s 2% benchmark and the Czech government’s own gradual plan to reach 3% by 2030 (apnews.com)
  • The U.S. emphasised that allies must “pull their weight,” warning that Czechia risks being among NATO’s lowest spenders if core spending declines, while NATO has committed under its 2025 Hague declaration to raise combined defence and security-related spending to 5% of GDP by 2035 (uk.finance.yahoo.com)

References

Frequently Asked Questions

Why did Czech President Petr Pavel criticize the government's defence spending?
President Petr Pavel called the reduced defence spending unjustifiable amid growing security threats and warned of a possible loss of trust from allies.
What percentage of GDP does the new Czech defence budget allocate?
The new defence budget allocates 1.73% of GDP, lower than the previous government's proposal.
How has NATO responded to the Czech defence budget cuts?
The United States, a major NATO ally, criticized the cuts, with diplomats stating all allies must contribute their share.
Will the Czech Republic meet its NATO defence spending commitment?
Prime Minister Andrej Babis claims the country will still meet its 2% of GDP NATO spending commitment.
What are some reasons cited for the budget cuts to defence?
Prime Minister Babis argues funds are needed elsewhere, such as in healthcare, causing the defence budget to be reduced.

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