During a press conference reacting to data released today by the INE, which showed Portugal recorded a 0.7% surplus of GDP in 2024, the minister was asked if there is now more room to invest in Defense. He highlighted that the medium-term budget plan submitted in Brussels “anticipates an increase in defense spending up to 2% of GDP by 2029.”
“Naturally, there is some room to advance, especially as budgetary rules will be relaxed, allowing Portugal to benefit as well,” admitted Joaquim Miranda Sarmento, noting that “there will be a new NATO meeting in June to update each country’s plans.”
However, the minister cautioned that “this greater commitment to Defense cannot jeopardize the budget balance and the Government’s objective to maintain surpluses around 0.3% or 0.2% of GDP.”
Therefore, it is necessary to “accommodate the need to spend more on Defense” while also “maintaining budget balance and reducing public debt.”
The European Commission aims to advance its 800 billion euro defense plan within the European Union. This includes the potential for EU member states to activate the national safeguard clause by April, allowing spending without the risk of excessive deficit procedures and swiftly adopting the regulation to strengthen European armament and manufacturing.
In terms of financing, the next long-term community budget should provide a comprehensive and robust framework to support EU defense, urged the European Commission, which remains hesitant about proceeding with a joint debt issuance, according to community sources consulted by Lusa.
