Czech Lower House Passes 2026 Budget with Defence Cuts

The lower house of the Czech Republic has approved a new national budget for 2026, setting a deficit of 310 billion crowns ($14.75 billion) amid a shift toward increased social spending and reduced defense outlays. The plan, championed by the government of Prime Minister Andrej Babis and his populist ANO party, replaces a provisional budget that had been in place following legislative delays after last year's elections. The administration has prioritized investments, public sector wages, and energy subsidies, aiming to stimulate economic growth after a period of fiscal consolidation.