Portugal has expressed interest in accessing a European program offering €150 billion in loans under favorable conditions to bolster its defense capabilities. This move comes as the 32 NATO allies gather in The Hague for a summit focused on increasing defense spending.
Key Developments
- Portugal, alongside nine other EU countries, including Poland, France, and Lithuania, has shown interest in the European Commission's loan program aimed at defense reinforcement.
- No formal application has been made yet, with the deadline set for the end of July. Allocation details remain unspecified.
Government's Stance
- Finance Minister Joaquim Miranda Sarmento hinted at the possibility of utilizing the SAFE program, though he noted that the financing conditions might not be significantly more favorable than Portugal's current options.
- The Ministry of Defense is negotiating protocols with other nations for the purchase of the KC-390, a military transport aircraft largely produced in Portugal by Embraer, with components made in Évora.
Defense Spending Insights
- Over half of Portugal's defense budget is allocated to personnel costs, with equipment investments needing an additional €1.3 billion this year to meet the 2% GDP NATO target.
- Spanish Prime Minister Pedro Sánchez deems a 5% defense investment "unaffordable" for Spain, drawing criticism from Donald Trump over Spain's NATO contributions.
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