Portugal plans to raise its defence spending to 2% of its gross domestic product (GDP) this year, four years earlier than expected, Prime Minister Luis Montenegro announced Thursday.
Currently, Portugal spends about 1.58% of GDP on defence, one of the lowest rates among NATO’s 32 members. In 2024, this amounted to approximately 4.48 billion euros ($5.12 billion).
Previously, Portugal aimed to meet NATO’s 2% defence spending target by 2029. However, Montenegro said his newly re-elected centre-right government will soon finalize a multi-year defence investment plan.
He intends to present this plan at the upcoming NATO Summit, scheduled for June 24-25, with the goal of reaching the 2% target by 2025.
Montenegro emphasized that the plan will be realistic, ensuring it does not harm social services or the country’s budget balance. The government also aims to boost national defence industries and related sectors, using increased defence investment to stimulate economic growth.
The NATO Summit will also discuss U.S. President Donald Trump’s call for allies to raise defence spending to 5% of GDP.
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