A collection of 4 posts
Slovakia, Czechia and Poland are all writing 2027 budgets that push against their own debt and deficit limits. Defence is the obvious culprit, but weak growth, the energy shock and rising interest bills are doing just as much damage.
The Czech Chamber of Deputies overrode President Petr Pavel's veto of a fiscal-rules omnibus bill clearing the way for a law that lets the government exceed budget ceilings on defence and infrastructure spending through 2036, a move the opposition says it will challenge at the Constitutional Court.
The Czech Chamber is due to vote on overriding the President's veto of a fiscal-rules bill on 25 August. Not just defence spending is at stake, but the next presidential election, where the President is increasingly viewed by the Czech public as the head of the opposition.
Czechia's 2026 deficit is running nearly a full percentage point above what the outgoing Fiala government projected and the single largest reason is a defence-spending trajectory that Prime Minister Babiš campaigned against but has since chosen to continue.