This file photo shows Czech Rebublic's President Petr Pavel prepares to sign a copy of the Declaration in Support of the Enlarged Partial Agreement on the Register of Damage during the Council of Europe summit in Reykjavik, Iceland, Wednesday, May 17, 2023. (PHOTO / AP)
PRAGUE - Czech President Petr Pavel on Wednesday signed a law that raises the country's annual defense spending to at least 2 percent of gross domestic product (GDP), his office said in a statement.
The legislation, which will come into force in July and apply to next year's state budget, aims to provide stable funding for costly defense projects to modernize the military.
Last month, the Czech government approved a plan to purchase 246 CV90 infantry fighting vehicles from Sweden. The deal, valued at 59.7 billion Czech crowns, was described by local media as "the largest army purchase in the modern history of the Czech Republic and one of the largest state orders ever"
This commitment aligns with a 2006 agreement among members of the North Atlantic Treaty Organization (NATO), which obligates them to allocate 2 percent of their GDP on defense to maintain the alliance's military readiness. The Czech Republic has repeatedly pledged to increase its defense spending.
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The Czech government's plans have so far included defense spending of 130 billion Czech crowns ($5.88 billion). To achieve the 2 percent target, the Defense Ministry's budget would increase by about 21.5 billion Czech crowns in 2024, the Czech News Agency reported.
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Last month, the Czech government approved a plan to purchase 246 CV90 infantry fighting vehicles from Sweden. The deal, valued at 59.7 billion Czech crowns, was described by local media as "the largest army purchase in the modern history of the Czech Republic and one of the largest state orders ever."
The delivery of the first vehicles is anticipated in 2026, with completion by 2030.
