The government has pared back its defense allocation to between 1.7% and 1.8% of GDP. This retraction comes despite mounting pressure from allies to bolster military capabilities in response to the war in Ukraine. Babis defended the decision by citing the need to stabilize public finances, noting that his cabinet has opted to prioritize funding for road construction and energy price caps, which has widened the overall budget deficit beyond initial projections.
While the 2% threshold remains elusive, the Prime Minister outlined a revised trajectory for the coming years. Babis stated that the administration aims to hit the 2% target by 2027, framing it as a sustained commitment rather than a temporary accounting adjustment. This plan arrives against a backdrop of evolving alliance expectations, as NATO members look toward more ambitious long-term spending benchmarks to address regional security threats.





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