Czech Republic & Central Europe — 2026-03-20

Czech 2026 Budget Keeps Defence at 1.7% of GDP Despite NATO Pressure

Czech lawmakers approved CZK 155 billion for the Defence Ministry, representing 1.7% of GDP -- well below the NATO 2% floor and drastically short of the 5% target Trump demanded at The Hague summit. Babis argues the inherited deficit prevents increased spending, while the defence ministry insists critical procurement timelines for F-35s and air defense systems are at risk. The budget gap makes Czech Republic one of NATO's lowest spenders during the alliance's most active operational period since the Cold War.

View in full brief →

UNCLASSIFIED // OPEN SOURCE