Why Czechia wants to cut defence spending and how this could spark a conflict

The Czech parliamentary coalition is planning to significantly limit defence spending.

The country’s actual military expenditure could fall to 1.8% of GDP.

This is even lower than the previous NATO minimum, which was revised upward last year.

Czechia risks entering into a serious conflict both with NATO leadership and personally with US President Donald Trump, who reacts very sharply to any attempts by European allies to save money on defence.

Read more about why Czech Prime Minister Andrej Babiš is willing to take such a risk the article by Yurii Panchenko, European Pravda's editor: Czechia against NATO: how Babiš’s government is heading towards conflict with Trump over defence spending.

"Our priority is the health of our citizens, so that they live long lives," the new Czech prime minister Andrej Babiš explained when justifying his government’s decision not to increase defence spending.

He also confirmed definitively that the government "certainly" will not raise defence spending to the planned 3.5%.

Formally, in the new draft of the 2026 state budget, which parliament is expected to adopt in its third reading next week, defence spending is set at 2.1% of GDP.

However, there is some manipulation involved. In the 2026 budget drafted by Babiš’s government, several infrastructure projects are to be classified as defence spending, primarily the completion of the D11 motorway, which will connect Prague with the Polish border.

Without counting these expenses, the Czech defence budget would amount to only 1.8% of GDP – below NATO’s previous target benchmark.

The government claims that this reduction will not weaken the country’s defence capabilities.

But will NATO tolerate such "frugality" from the new Czech government?

Defence cuts became a topic of discussion between Babiš and the US Ambassador to Czechia, Nicholas Merrick.

According to Czech media, the US ambassador proposed increasing defence spending through contributions to the PURL programme, which would finance arms procurement for Ukraine. However, Babiš rejected the idea.

Instead, the Czech government is seeking a one-year postponement of its NATO commitments.

The government justifies this delay by citing the poor state of the economy, effectively shifting the blame to its predecessors.

Yet this argument does not appear convincing.

Thus, the actions of the "Czech Trump", as Prime Minister Andrej Babiš seeks to position himself, could lead to a very loud scandal, and possibly even threats and pressure from "the American Trump."

President Donald Trump reacts extremely sharply to allies failing to meet their obligations.

So why is Andrej Babiš taking such a risk?

The updated draft budget includes a record increase in social spending, which was a key campaign promise of Babiš.

It is precisely the inclusion of these promised social initiatives in the draft state budget that, according to sociologists, is helping maintain the ratings of the prime minister’s party, ANO 2011.

At present, it appears that the head of government does not have sufficient influence over his coalition partners. However, he may soon have the opportunity to restore order within the coalition, without fearing to threaten early elections.

And here, the high approval rating of the ANO party could become a significant lever of pressure for Babiš against his partners.

That is why the Czech prime minister is taking a very risky step, exposing himself to criticism from NATO and the United States.