Portugal is now under pressure from both the European Union and President Trump to increase its defence spending, but Prime Minister Luís Montenegro insists that healthcare and other public services will not be affected, and that year-end budget surpluses can still be maintained.
In an interview with RTP this week, following the conclusion of the NATO summit in The Hague, the Prime Minister acknowledged that increased defence spending is “a new priority,” but stated: “Everything indicates — and we are fully confident — that we will reach the end of the year with balanced public accounts, and therefore with a budget surplus.”
Portugal has committed to reaching 2% of GDP in defence spending this year, but the Prime Minister confirmed that “we will not move a single cent from any of our public policy areas.”
Asked how the increased defence expenditure would be funded, Montenegro said: “We haven’t just discovered a gold mine to pay for these expenses.” He went on to explain that the government would allocate to defence “resources that are available from the Ministry of Finance and from the capacity allowed by the budget itself.”
He added that the government would need to implement “a multi-year programme to continue increasing this investment in the coming years” in order to move closer to the 5% of GDP defence spending target set this week for 2035.







