PRAGUE, March 20 (Reuters) – Czech President Petr Pavel signed the 2026 budget into law but warned defence outlays were not corresponding to growing security threats and NATO spending commitments, his office said on Friday.
“The president views the state of the defence budget with great concern,” his office said in a statement.
“He points out that with the current growth of security threats, the defence budget is essentially stagnating and does not correspond to the obligations to NATO allies.”
The president has been at odds with Prime Minister Andrej Babis’ government over its plans to scale back defence spending in the 2026 budget versus a previous proposal.
Babis’ populist ANO party took power in December and revamped the previous centre-right government’s budget, leaving the country to start 2026 with a provisional budget that has limited spending.
Pavel said he did not want to stand in the way of the new budget taking effect.
DEFENCE SPENDING PLANS CRITICISED BY US
The Czech fiscal gap has fallen below European Union limits of 3% of gross domestic product.
The new budget, with a deficit of 310 billion crowns ($14.65 billion) that is above the previous plan, has allocated an amount equal to 1.73% of GDP to the defence ministry, 21 billion crowns less than previously proposed.
Babis’ government says defence spending will be above 2% of GDP – NATO’s current commitment which is due to rise in coming years – when factoring in spending in other departments, such as for road projects. But the president and budget watchdog warn it includes transport spending that NATO may not recognise.
“Saving on defence is short-sighted, especially in today’s geopolitical situation,” the presidential office statement said.
Babis has said money was needed elsewhere, like in healthcare, and says the Czech Republic will meet its NATO commitment.
The U.S. Ambassador to NATO Matthew Whitaker said on X on March 12, after the Czech lower house approved the budget, that all allies “must pull their weight”, which followed similar criticism from the U.S. ambassador to Prague.
($1 = 21.1580 Czech crowns)
(Reporting by Jason Hovet)