“There is a possibility of using some, resorting to SAFE, although the financing conditions of SAFE at this time are not particularly more favorable than those of the Portuguese Republic’s financing, but we are analyzing all existing alternatives,” stated the Minister of Finance, Joaquim Miranda Sarmento, in an interview.
Just days before the NATO summit, marked by strong geopolitical tensions in the Middle East and Ukraine and the need to increase security investment, the minister also noted that “there is a military aircraft produced in Portugal, and the Defense Ministry is currently developing agreements with other countries to purchase that aircraft.”
The idea is not only for Portugal to benefit from these community loans, designated as SAFE, but also to participate in European projects, potentially selling domestically produced equipment.
“What the Ministry of Defense is doing is establishing protocols with other countries so that they can acquire this aircraft primarily produced in Portugal,” Joaquim Miranda Sarmento highlighted during the interview.
The Finance Minister was referring to the KC-390, a twin-engine aircraft with components made in Évora by the Brazilian company Embraer.
This multifaceted military transport aircraft is used for tactical and logistical purposes and, with its intercontinental range, can be employed in military operations such as those by NATO.
In late May, the EU Council adopted a 150 billion euro loan package under favorable conditions for joint purchases to strengthen community defense, which countries can request from Brussels until the end of the year.
The Council of the European Union (EU) has today adopted a package of 150 billion euros in loans under favorable conditions for joint purchases to strengthen community defense, which countries can apply for until the end of the year.
Lusa | 11:45 – 27/05/2025
This loan package, named SAFE, is planned to facilitate joint purchases of military material among member states, financed through joint EU debt issuance and then transferred as credits to requesting member states.
This new European credit instrument under extraordinary circumstances is one of the measures of the 800 billion euro defense plan in the EU.
The 32 NATO allies will meet on Tuesday and Wednesday at a summit in The Hague, driven by the urgent need to increase defense spending, hoping to avoid war but preparing for the worst amid global geopolitical instability.
In Portugal, the government announced it would advance the 2% GDP defense target to 2025.
In 2024, Portugal invested around 4,480 million euros in defense, approximately 1.58% of its GDP, placing the country among NATO allies with the lowest military expenditure, below the 2% target, according to estimates from both the government and the organization.
Portugal will be represented at the summit in The Hague by Prime Minister Luís Montenegro and the Ministers of Foreign Affairs and Defense, Paulo Rangel and Nuno Melo.
