PRAGUE, March 16 (Reuters) - Czech President Petr Pavel called the new government's reduced defence spending unjustifiable on Monday, adding to criticism that Prime Minister Andrej Babis' 2026 budget plans have faced, including from its largest NATO ally, the United States.
Babis' populist ANO party took power in December. Last week it pushed through a revamped 2026 budget plan, which cut the defence ministry's allocation to 154.8 billion crowns ($7.28 billion), or 1.73% of gross domestic product, lower than the previous government's proposal.
The government says it has budgeted nearly 2.1% of spending for defence, but the country's fiscal watchdog warns that includes items like road projects that may not meet NATO criteria.
Pavel, a former NATO official, criticised the spending levels in a meeting with Finance Minister Alena Schillerova on Monday, the president's office said.
"According to the president, it is not justifiable that defence expenditures stagnate or even decrease at a time of growing security threats," the statement said.
Pavel has previously warned of a loss of trust from allies because of defence spending but has signalled he would not veto the budget.
ALLIES MUST PULL WEIGHT, US ENVOY SAYS
Schillerova said the president "did not hide" he wanted more money for defence, but she defended the plans.
Babis has said money was needed elsewhere, like in healthcare. The Czech Republic will still meet its 2% of GDP spending commitment in NATO, he said last week.
U.S. Ambassador to NATO Matthew Whitaker said on X last Thursday, responding to the Czech lower house's budget approval, that all allies "must pull their weight", following similar criticism from the U.S. ambassador to Prague.
European NATO countries are under pressure to raise defence spending. Alliance members last year pledged to raise spending to 3.5% of GDP plus 1.5% on other defence-relevant investments over the next decade. But Babis has said the country was not on a path to that new target.
($1 = 21.2670 Czech crowns)
(Reporting by Jason Hovet; editing by David Gaffen)
