Central European governments finalize budgets amid spending pressures

Central and Eastern European governments are finalizing budget preparations for 2026 and 2027, facing a tension between increased spending and fiscal consolidation.

In the Czech Republic, the defense budget is set to rise to 191 billion CZK, aiming to meet the NATO commitment of 2% of GDP. While the government plans for higher wages in the public sector and investments in transport and healthcare, analysts warn that the budget deficit could expand significantly, potentially exceeding 360 billion CZK.

Slovakia's government is prioritizing drought combat, nuclear energy, and infrastructure. However, opposition parties, including SaS and Progresívne Slovensko, criticize the approach, arguing that the budget should focus on cutting state spending and supporting economic growth rather than increasing taxes or debt to fulfill pre-election promises.

In Slovenia, the Ministry of Finance announced a budget increase of approximately 747 million EUR for 2026, primarily directed toward recovery, resilience, and defense projects. Meanwhile, various ministries are navigating funding gaps as they adjust to new organizational structures.