Streamlining military acquisitions, increasing the involvement of Czech companies in defense contracts, and supporting businesses that wish to enter the defense industry. These were the main topics of a CZ DEFENCE interview with Lubomír Kovařík, Vice President of the Czech Chamber of Commerce and Chairman of its Defense Industry Section, at the DEFENCEO 2026 conference in Brno. According to Kovařík, the domestic defense industry is highly competitive, and its active involvement in the modernization of the Czech Armed Forces represents not only an economic opportunity but, above all, a strategic necessity.

Video: Lubomír Kovařík: Without the Czech defense industry, the country’s strategic independence cannot be ensured / CZ DEFENCE

The current security situation and rising defense spending are creating new opportunities even for companies that have not previously operated in the defense sector. According to Lubomír Kovařík, this is a promising industry, but entering it requires meeting a number of conditions. The first obstacle is legislation, particularly requirements related to trading in military equipment, the necessary licenses, and security clearances. “All companies that wish to operate in the defense industry and supply military equipment or dual-use items must comply with the legislative requirements of the Czech Republic,” Kovařík noted. He also recommended that small and medium-sized enterprises establish partnerships with established Czech defense companies that are seeking new suppliers. He cited, for example, the CSG Group, Colt CZ Group, Omnipol, and STV GROUP. It is precisely through their supply chains that new companies can enter the defense sector much more easily.

The Czech Chamber of Commerce also plays an important role in connecting individual companies. According to Kovařík, the Chamber provides contacts for potential subcontractors to established firms, which then evaluate the possibilities for its involvement. Another opportunity is the industry days organized in connection with the needs of the military and the defense industry.

“I would recommend going through companies that are already established today, while also keeping an eye on which industry days the Czech Army is organizing. Actively sign up for these industry days, because they are an ideal opportunity for companies to showcase their capabilities, products, and potential,” said the vice president of the Chamber of Commerce.

Outdated Procurement Process Hinders Military Modernization

One of the most crucial topics of the interview was the efficiency of procuring new military technology, systems, and equipment. Although the Czech Republic is moving toward increasing defense spending, the amount of funding alone is not enough, according to Kovařík. It is equally important to create conditions that will allow for their effective and rapid deployment. “We face one major task: preparing and streamlining the existing procurement process. It is becoming clear that, as it is currently structured, it is in many cases dysfunctional, slow, or outdated. I believe this will be the main task for the near future,” Kovařík emphasized.

The chairman of the Defense Industry Section of the Czech Chamber of Commerce subsequently gave a positive assessment of the progress in communication between the Ministry of Defense, the Czech Army, and domestic manufacturers. According to him, there has been significant progress in this area, and representatives of the Ministry of Defense and the Czech Army are increasingly aware of the strategic role of Czech companies. “Both the Ministry of Defense and the end-user – that is, the Czech Army – fully understand that it is impossible to ensure the country’s defense capability and strategic independence without the active involvement of the Czech defense industry,” Kovařík stated.

Czech Companies Must Secure a Larger Share of Defense Contracts

The DEFENCEO conference also featured discussions on specific ways to strengthen the Czech defense industry. In this context, Kovařík highlighted three key priorities. The first is to increase the success rate of Czech companies in securing funding from the European Defense Fund (EDF), particularly for research and development. The second is to simplify and accelerate procurement processes. According to Kovařík, the third priority is to more consistently involve domestic manufacturers in military contracts. “Whatever we can produce and know how to produce should be done by Czech companies. For what we are unable to produce, we should have an agreement with suppliers ensuring that the Czech defense industry is involved to the greatest extent possible,” Kovařík explained. According to him, this approach is not merely a matter of supporting the domestic economy, but above all of building the Czech Republic’s long-term self-sufficiency and defense capabilities.

Ninety percent of production is destined for export

At the end of the interview, Kovařík also commented on the competitiveness of domestic defense companies. He rejected the notion that greater involvement of Czech companies in domestic defense contracts would necessarily mean giving preference to lower-quality or uncompetitive products. “The Czech defense industry is generally export-oriented. It exports 90 percent of its products outside the Czech Republic, which answers the question of whether or not it is competitive. It is absolutely competitive. If it weren’t, it wouldn’t be able to export so much,” emphasized the vice president of the Chamber of Commerce.

According to him, the involvement of domestic manufacturers in the Czech Armed Forces’ modernization projects is crucial not only from a security perspective but also for public finances. Funds invested in Czech companies support the domestic economy and are partially returned to the state budget through taxes and other levies. “It’s a matter of strategic importance; it’s about the state’s self-sufficiency; and it’s also about the economy, because everything we invest in Czech companies comes back in the form of direct and indirect taxes and other contributions to public budgets,” concluded Lubomír Kovařík.