Babis Puts Budget Before Defense Spending

The Czech Republic will not meet NATO's target of spending at least 2% of GDP on defense this year, Prime Minister Andrej Babis announced on Facebook on Friday.

The previous government had sought to reach the alliance's spending benchmark but ultimately fell short. Babis's administration later revised this year's defense budget, reducing planned spending to around 1.7% to 1.8% of GDP.

Although the prime minister had previously said he was looking for ways to meet the NATO target, he now says restoring the country's public finances must take priority.

Alongside lower defense spending, the government has increased expenditure on energy subsidies and road construction. Those measures have contributed to a larger budget deficit than that envisaged by the previous administration.

In response to growing security challenges and US calls for greater European self-reliance, NATO members recently agreed to raise the alliance's spending target to 5% of GDP by 2035. Of that total, at least 3.5% is expected to be devoted to core military spending.

Babis said he remains confident that the Czech Republic will meet the 2% threshold next year, adding that the increase will form part of a long-term strategy rather than a one-off adjustment.

(reuters, max)