Portugal's Strategic Plan for Increased Defense Spending by 2035

Portugal is planning a gradual increase in defense spending to reach NATO's 5% GDP target by 2035 while ensuring financial stability. The strategy involves annual spending hikes, aiming for a 2% GDP spend this year, with anticipated economic and strategic benefits.

Portugal is charting a careful course to increase its defense spending, aiming to reach NATO's new threshold of 5% of its gross domestic product by the year 2035. Prime Minister Luis Montenegro assured that the plan prioritizes financial stability, promising incremental annual increases to achieve this landmark without endangering the nation's economic health.

Montenegro highlighted the country's strategic approach at a recent defense conference, citing the larger plan to bolster Portugal's economic and defense capabilities. At a NATO summit in The Hague, it was agreed that defense budgets across NATO would aim for higher targets, with specific investments leading to more substantial gains in maritime and air capacities for coastal nations like Portugal.

Although Portugal's defense spending is currently lower compared to other NATO countries, it has pledged to scale up its budget, reaching 2% of GDP this year. This adjustment precedes the projected timeline by four years and is projected to contribute positively to its broader economic framework while maintaining fiscal discipline.

(With inputs from agencies.)