During the in-depth discussion on the proposed State Budget for 2026, Nuno Melo initially stated that Portugal “will reach 2% of the Gross Domestic Product (GDP) this year, mobilized through the State Budget, the Recovery and Resilience Plan (PRR), and the SAFE, a European loan program in this sector.”
Shortly thereafter, Melo was questioned by Chega’s deputy Nuno Simões de Melo regarding concerns raised by the Public Finance Council (CFP), which had analyzed the budget proposal and noted that “the proposed public expenditure on security and defense appears to fall short of the effort committed by Portugal in the context of European cooperation in this matter.”
“I will only say that we will achieve the 2% investment in Defense,” responded Nuno Melo, emphasizing that this area of sovereignty “has been at the forefront of virtuous execution of available speeches.”
“In 2025, we had several reinforcements that ensured investments were in line with the Government’s commitments, particularly with our allies, and to realize our strategic vision. Therefore, we will achieve the 2% investment as planned,” he insisted.
PS deputy Luís Dias also expressed doubts about this objective set by the Government, accusing the administration of presenting a budget proposal without “clear deadlines, concrete targets” and cited the CFP.
“This is not what the PS says. It is an autonomous entity,” emphasized Luís Dias, who also referenced an allocation of 1.2 billion euros included in Chapter 60 of the Budget, which may be channeled towards military expenses and is under the control of the Ministry of Finance.
“Indeed, the CDS-PP has a very short leash in this AD government,” accused the socialist.
In response, Nuno Melo accused Luís Dias of being “very sour” and lacking courtesy, rejecting “lessons in transparency.”
“I mentioned three sources of funding: State Budget, PRR, SAFE, I talked about modernization of assets, equipment acquisition. Using all this, in line with NATO’s capacity targets, considering the Military Programming Law. They couldn’t be clearer. If the deputy does not find them, it will be his problem, not mine,” retorted the minister.
Regarding the 1.2 billion euros reserve, Nuno Melo dismissed it as being “hidden” and pointed out that “it is public” that this amount will be applied to National Defense.
He highlighted that the Defense Budget for the coming year could be reinforced throughout 2026, as happened this year.
BE’s sole deputy, Mariana Mortágua, also questioned the official about the CFP’s concerns, pointing out that this entity noted that if the 1.2 billion is used in effective Defense expenditure, the Government’s surplus will turn into a deficit.
Although Portugal has activated the escape clause with the European Union, allowing military expenditures to not be counted towards the deficit, Mortágua emphasized that the European Commission requires that this expenditure be accommodated by 2028 and questioned how the Government plans to accomplish this.
In response, Nuno Melo reiterated that the amount is intended for Defense and referred to Finance Minister Joaquim Miranda Sarmento for clarifications on particular “budgetary consequences.”
Insisting that Portugal will achieve the 2%, Melo assured it would be done “without compromising the welfare state at any point” and “strengthening the economy.”
