CZECH REPUBLIC & CENTRAL EUROPE — 2026-03-17

Czech Budget Passes at 1.7% GDP Defense Spending, Below NATO Target

Czech lawmakers passed the 2026 budget allocating 155 billion koruna ($7.4B) for defense—1.7% of GDP, well below NATO's new 5% target. PM Babiš's coalition (ANO, SPD, Motorists) voted 104-87 to approve despite warnings from US Ambassador Merrick and President Pavel. The shortfall positions Czechia among NATO's lowest spenders during a period of active alliance operations.

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