Czech Prime Minister Andrej Babiš has been discussing defense spending with the U.S. Ambassador to Prague, Nicholas Merrick, as the government seeks to lower its military budget. The debate comes as NATO members face pressure to meet defense spending commitments, particularly in light of the ongoing war in Ukraine.
According to reports, Babiš is resisting proposals to meet the alliance’s target of 2% of gross domestic product (GDP) for defense. U.S. Ambassador Merrick reportedly suggested that the Czech Republic could fulfill its obligations by contributing to a NATO fund dedicated to purchasing weapons for Ukraine, but Babiš is seeking a one-year deferral, according to Deník N.
The current Czech government has expressed reservations about increasing defense expenditures, a commitment made by NATO states last June. Babiš stated Thursday in an interview with Deník.cz that the Czech Republic will not pursue defense spending levels reaching 3.5% of GDP.
Calculating defense spending can be complex, as some expenditures claimed as defense-related may not align with NATO’s definition and are therefore not recognized by the alliance.
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The Czech Ministry of Defense is budgeted to receive 154.79 billion Czech crowns this year, which falls short of the 2% GDP target. The previous government of Petr Fiala had proposed allocating an additional 21 billion crowns to the ministry.
Total defense spending is projected to reach approximately 185 billion crowns, with 30 billion coming from other budget chapters. Based on January macroeconomic forecasts, this would equate to roughly 2.07% of GDP.
According to Deník N, the U.S. Ambassador warned Babiš during their meeting that the Czech Republic would not meet its commitments. The U.S. Side also reportedly suggested contributing funds to the NATO fund for weapons procurement for Ukraine as a way to fulfill the obligation.
“We will not comment on the content of private conversations; however, we look forward to continuing our discussions with Czech officials who will refine their plans for defense modernization to meet their commitments to the security of the Czech Republic and Europe,” the U.S. Embassy stated in response to a query about the ambassador’s proposal.
Don Cordell, a spokesperson for the U.S. Embassy, said that meeting the increased defense spending commitment “is not about fulfilling a request from abroad, but a necessary investment by Czechs to ensure their security.”
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The Prime Minister’s Office has not yet responded to inquiries regarding the discussions with the ambassador. The SPD party, a member of the governing coalition, has consistently opposed sending funds for weapons to Ukraine.
The Czech Republic is reportedly seeking an exception in the U.S. To avoid meeting its commitment this year. Foreign Minister Petr Macinka recently attempted to negotiate this in Washington, meeting with several high-ranking officials from the U.S. Administration. “I made sure they understood that we inherited a catastrophic state of public finances from the previous government,” Macinka said, adding that Americans understand “it is not possible to work miracles.”
Babiš believes NATO will be understanding, “because we simply demand money for our citizens according to our program.” He wants to prioritize healthcare and social spending.
“In order for citizens to live long lives, we should first of all take care of our security. The state must ensure that. If we do not live in safety, our health for a long life will probably not help us,” former Prime Minister Petr Fiala (ODS) believes.
Other opposition parties and movements also say that adhering to allied pledges is key, fearing damage to the Czech Republic’s reputation internationally.
Politico: Czech Republic Risks Anger From Trump and Allies
“Prague has formally allocated only 1.8 percent of GDP to baseline military spending, less than the 2 percent target that all NATO members reached last year. More than ten years after the establishment of this goal,” Politico reports. Such a move risks angering both Washington and other NATO members.
“I don’t think (NATO Secretary General Mark, ed.’s note) Rutte will let it pass,” a NATO diplomat told Politico, speaking on condition of anonymity. “I don’t think he wants to provide Trump an excuse to criticize NATO,” referring to the pressure from U.S. President Donald Trump for increased defense budgets among allies.
The alliance agreed last year to increase defense spending to 5% of GDP by 2035, with 3.5% consisting of direct military expenditures.
Babiš is attempting to include the completion of the D11 highway, connecting Prague with the Polish border, in defense spending to remain above the 2% GDP threshold. However, such funds are not counted towards direct defense costs.
GALERIE
Politicians and experts on the budget and defense spending
Other NATO countries have also attempted similar budgetary maneuvers. Italy last year tried to include a new bridge in Sicily, valued at 13.5 billion euros (approximately $327 million), as a way to meet the 5% target, of which 1.5% can be allocated to “softer” expenditures that may also have civilian uses. Rome withdrew this proposal after the U.S. Made its strong disapproval clear.
