The Prime Minister, Luís Montenegro, provided an overview of the first day of the European Council, which continues until tomorrow in Brussels, Belgium.
At a press conference, the head of government highlighted that “the main point” of the meeting “revolved around the role of the European Union in the area of security and defense.”
“We also had very productive interaction with the European Commission to devise a process aimed at ensuring more agile procedures and financing to strengthen defense investments,” he reported.
Regarding this issue, Montenegro noted that the possibility of each state having its own reinforcement strategy is on the table, but he stressed the importance of working in and with the European bloc: “There is a need for a shared strategy. Mechanisms of solidarity and complementarity. It requires increasingly close dialogue at the European level.”
When questioned about the financing of future defense efforts and the possibility of reprogramming unexecuted funds from the PRR for defense, Montenegro said: “At the moment, we have opened a dialogue with the Commission to take advantage of the financing mechanisms already directly put in place for this area […]. At the moment, all financing possibilities are open. From the PRR’s point of view, it is not our intention to reprogram it to allocate areas of defense differently from what is currently in execution […]. For this investment reinforcement program, the financing instrument we want to use is not the PRR.”
Montenegro explained that Portugal will prefer “right away” the use of loans being negotiated with the Commission, as well as other sources that may be decided.
The Prime Minister dismissed the notion that it would be through these loans that Portugal would reach 2% in defense, stating that in 2025 “it will indeed be at the expense of our budget and, therefore, our capacity to manage our public finances.”
Security and Defense ‘dominated,’ but what else was discussed?
Montenegro also highlighted the conversation with the Ukrainian President, Volodymyr Zelensky, emphasizing Portugal’s support “in the search for processes that achieve lasting peace.”
Montenegro was also questioned about the Middle East, noting that regarding Iran, it was a priority for diplomatic channels to be restored with a view to a “sustainable” ceasefire.
Discussing investment in industries, Montenegro considered it necessary to have coherent axes: “For example, we need to reduce energy costs to strengthen the competitiveness of our companies and also to ensure that investments in the area of security and defense can be competitive in the markets.”
Montenegro stated that it was nearly unanimous that Europe needs to diversify its trading partners and apply greater speed in executing trade agreements: “We have to be consistent with what we are seeking.”
