Pavel and Babis Meet at Prague Castle Over Budget; President Signals He Won't Veto Despite Defense Concerns

President Pavel met PM Babis at Prague Castle to discuss the 2026 state budget with its 310 billion crown ($13.3B) deficit. Pavel indicated he will sign the budget despite criticizing its 1.7% GDP defense allocation, well below NATO's targets. The higher deficit of 310B vs last year's 290.7B crowns reflects increased social spending at the expense of security commitments, deepening tensions with Washington and NATO allies during an active alliance conflict.