Czech PM Fiala: Strengthening EU defense investments will benefit the Czech Republic

Increasing European Union (EU) investment in the defense industry will provide economic advantages for the Czech Republic, Prime Minister Petr Fiala (ODS) stated before departing for an informal summit of EU leaders in Brussels. The discussions at the summit are focused on improving access to funding for the defense sector and strengthening Europe’s security capabilities.

Fiala emphasized the importance of coordinated defense acquisitions within the EU, highlighting the recent call from 18 European leaders urging the European Investment Bank (EIB) to open up financing opportunities for private-sector defense companies. He stressed that Europe must take greater responsibility for its security, invest more in defense, and improve access to financial resources for its defense industry. He also reiterated that increasing NATO members’ defense spending beyond 2% of GDP is now “almost a necessity.” In addition, he called for simplifying joint defense procurement and enhancing EU-wide cooperation on military acquisitions, ensuring that these efforts remain fully compatible with NATO.

Fiala also outlined plans for increasing the Czech Republic’s defense budget, stating that if his current coalition remains in government, defense spending could rise from the current 2% of GDP to 3% in the next parliamentary term. Speaking on Czech Television’s “Questions of Václav Moravec”, he confirmed that in the 2025 budget, the government aims to increase defense spending to 2.1% or 2.2% of GDP, ensuring a buffer to confidently meet NATO’s minimum spending requirement.

Defense Minister Jana Černochová backed the Prime Minister’s proposal, emphasizing the need for a financial reserve to guarantee that the Czech Republic meets its defense commitments. She explained that since the Ministry of Defense cannot influence GDP growth, securing extra funding is crucial. She also noted that Fiala’s public commitment would strengthen her position in negotiations with the Ministry of Finance to secure the necessary funding.

The Brussels summit, convened by European Council President António Costa, marks a significant moment for European security policy. It is the first major EU defense meeting attended by NATO Secretary-General Mark Rutte and UK Prime Minister Keir Starmer, as well as the first summit following the election of U.S. President Donald Trump, who has previously called for NATO allies to increase defense spending to 5% of GDP. Last week, Costa hinted that NATO might adjust its defense spending targets above the current 2% level at this year’s NATO summit in The Hague.

Within Fiala’s Together coalition, key political figures have expressed support for increased defense spending. KDU-ČSL chairman Marek Výborný stated that higher defense investments should be accompanied by efforts to improve tax efficiency and introduce more progressive taxation. TOP 09 chairwoman Markéta Pekarová Adamová emphasized the importance of balancing military investments with the preservation of public services. Meanwhile, STAN leader Vít Rakušan also voiced support for the proposed defense spending increase.

In early January 2024, the Czech Ministry of Defense confirmed that the country met its NATO commitment of 2% of GDP in defense spending for 2023. However, NATO is expected to finalize its assessment of Czech defense spending utilization in the second quarter of 2024. With increasing global security concerns, the Czech Republic is aligning itself with broader European defense efforts, ensuring stronger security cooperation within the EU and NATO while reinforcing its military capabilities.

Source: CTK