The Portuguese National Defense Minister, Nuno Melo, has created a working group tasked with developing a proposal for expressing interest and subsequently making a formal request for financial assistance. This initiative is in connection with the SAFE initiative by the European Commission, designed to support member states with urgent investments in defense’s technological and industrial base through loans with terms up to 45 years, grace periods of up to 10 years, and pre-financing options of up to 15%.
In late May, the Council of the European Union adopted this package, offering 150 billion euros in favorable loans for joint purchases to bolster community defense.
The Ministry of Defense indicated that after submitting the expression of interest, the SAFE working group will move to the next stage, focusing on the technical development of projects and preparing the formal request for financial assistance by November 30, 2025.
“This request will be accompanied by a detailed investment plan focusing on the European defense industry, particularly integrating the national industry into future value chains promoted by projects funded under SAFE,” the ministry stated.
The Ministry also noted that the government aims to use this mechanism to address urgent needs identified in the three branches of the Armed Forces, also taking the lead in two of these joint procurement projects.
Moreover, according to the announcement, Portugal aims to align all investments in this context with NATO’s objectives, enhancing operational capabilities identified in the strategic design of the Portuguese force system and its international commitments.
The projects presented include munitions, satellite systems, land systems, naval platforms, unmanned systems, and other capabilities. The ministry mentioned that the European Commission is expected to specify in August the financial allocation for Portugal.
Following the formal request for financial assistance under SAFE, expected to occur by November 30, and the formal decision by the Council of the European Union in January 2026, pre-financing amounts could start being released in the first half of 2026, with several projects likely to officially start with the arrival of initial funds, the ministry stated.
