Czech government to boost defense budget by CZK 36 billion to hit NATO target

The Czech government plans to increase its defense budget by CZK 36 billion in 2027, a move aimed at finally meeting NATO’s defense spending target of 2 percent of gross domestic product (GDP).

Prime Minister Andrej Babiš announced the budget boost on Tuesday before departing for the crucial NATO summit in Ankara, Turkey.

The increase would bring Czechia's defense spending in line with NATO's target for the first time.

"Next year, we’ll increase the defence budget by CZK 36 billion, and we should therefore reach two percent for the first time," Babiš said.

Currently, the Czech military is allocated CZK 154.79 billion for this year, representing roughly 1.8 percent of GDP. An additional CZK 30 billion is being redirected to defence from the budgets of other ministries to help bridge the gap.

Despite these efforts, Babiš acknowledged that the Czech Republic will likely miss the 2 percent threshold this year. Defence Minister Jaromír Zůna previously stated that current spending would only amount to 1.78 percent of GDP, but he confirmed plans to request a total of CZK 190 billion for next year to secure the NATO target.

Babiš emphasized that the government is focusing heavily on local military recruitment and modernization. The funding will be used to implement a new concept for the Czech military, focusing on air defence, anti-drone systems, and fulfilling long-standing brigade commitments to NATO.

The announcement comes as NATO leaders prepare to debate a major financial aid package for Ukraine, with a proposal to provide EUR 70 billion this year and next.

Babiš stated that while Czechia will not block the alliance's proposal, the country will not contribute financially to the package. He argued that domestic resources must be prioritized to secure the Czech Republic's own borders and meet its alliance obligations.

“Of course, we won’t be paying money to Ukraine from the Czech budget, because we mainly need that money to meet the two percent defence spending target," Babiš said, adding that larger NATO member states would logically shoulder those costs.

The announcement comes amid a months-long dispute between the government and President Petr Pavel over the size and leadership of the Czech delegation to Ankara.

Pavel secured his participation only after a preliminary injunction from the Constitutional Court, after the government initially sought to exclude him.

Babiš will lead the delegation and attend both main summit events, while Pavel, invited separately by Turkish President Recep Tayyip Erdoğan, will attend an informal leaders' dinner on Tuesday, a defense industry business forum, and a Munich Security Conference meeting on security topics.

Pavel said he welcomed the government's commitment to reach 2 percent of GDP on defense spending, though he noted the military still has significant gaps to close.

The spending increase follows criticism of Czechia's defense budget from, among others, US Ambassador to Prague Nicholas Merrick, who warned earlier this year that the country risks ranking among NATO's lowest defense spenders and failing to meet its capability commitments to the alliance.

Representatives from all 32 member states of the alliance, including US President Donald Trump, will attend the summit on July 7 and 8. Trump is expected to want to hear how the allies are fulfilling their commitments and what their outlook is for defense spending in the coming years.