Czech Prime Minister Andrej Babis announced that the Czech Republic will again miss NATO's minimum defence spending target of 2% of GDP this year, citing the need to prioritize public finances. The country aims to meet the target by 2027.
The Czech Republic's failure to meet NATO's defense spending target highlights the fiscal pressures faced by some European nations, even amidst heightened security concerns, potentially impacting collective defense capabilities and burden-sharing within the alliance.
PRAGUE, June 19 (Reuters) - The Czech Republic will not meet NATO's minimum defence spending target of 2% of GDP again this year, Prime Minister Andrej Babis announced on Friday, but aims to achieve it by 2027.
Despite significant increases in defense spending by many allies due to Russia's war in Ukraine, the Czech Republic spent less than 2% of GDP last year. Babis's government reduced the current year's defense spending plan to approximately 1.7-1.8% of GDP, abandoning previous efforts to meet the target.
Babis stated on Facebook that the government must prioritize public finances. While cutting defense spending, the cabinet increased funding for energy price subsidies and road construction, which raised the overall budget deficit for the year.
In response to new security threats and U.S. calls for Europe to take greater responsibility for its defense, NATO has agreed to raise its minimum spending target to 5% of GDP by 2035, including 3.5% for core military spending.
Babis expressed confidence that the 2% of GDP threshold will be met next year, not as a one-off measure but as part of a long-term strategy. He added that defense spending will increase responsibly in subsequent years, aligned with the security situation and allied commitments.
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