PM CONFIDENT ABOUT FINANCES

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.

NATO MONEY MATTERS

As representatives of the 32 member states of NATO gather for their annual conference in the Netherlands, one of the main topics on the agenda is the need for most European countries to increase their defence spending. 

Portugal is one of the lowest NATO contributors with only an estimated 1.58% of its GDP. It is struggling to reach the current minimum target of 2% advocared by NATO for all its 23 European Union members. The Portuguese government says it hopes to reach this goal by 2030.

Some countries, such as Poland, Estonia, Latvia and Greece have significantly surpassed the average spending, but Canada, Italy and Spain like Portugal are lagging behind. 

President Trump wants European countries to spend at least 5% of their GDP on defence.

The United States not only contributes more money to NATO (16% of the total) but also the number of active military personnel (1.3 million troops).

 

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MASSIVE COCAINE SEIZURE

The Irish Sunday World newspaper is reporting that two Danes and an Irishman were arrested by Portuguese police and military personnel after intercepting off the Azores a yacht with 1.5 tonns of cocaine on board.

This quantity of class A drugs had a potential street value of 119 million euros. The three men have been remanded in custody in Ponta Delgado in the Azores Archapeligo following their first court appearance on Saturday.

A taser gun and 63,000 euros in cash were seized from the 11-metre yacht  

The operation midway across the Atlantic Ocean between the United States and mainland Portugal was codenamed “Operation Vikings.”

PEACE AND WAR

Portugal has again been declared one of the most peaceful countries in the world, yet it is unavoidably helping the United States to prepare for a possible escalation in the war in the Middle East.

The latest annual Global Peace Index released on Wednesday, ranks Portugal 7th. In Europe it is ranked 5th after Iceland, Ireland, Austria and Switzerland.

The Peace Index is measured in three ways, namely a nation’s degree of militarisation, its level of social security and safety, and its involvement in on-going domestic and international conflict.

Within Europe Portugal ranks second in military expenditure, and is recognised for its high level of social security and safety for its citizens. It is also lauded for its large-scale opposition to domestic and international conflict.

In no way denigrating the above, it has been revealed that the United Sates has deployed at least 12 refuelling aircraft to its military base in Lajes Field in the Portuguese Azores archipelago located in the Atlantic Ocean roughly halfway between North America and the Portuguese mainland. Why these large specialised aircraft have been deployed has not been revealed, but it is thought likely that is to do with United States concerns that it may need to intervene in the war between Israel and Iran.

President Trump declared a two-week delay in deciding whether or not to enter the conflict, but US bombers have now "completely and totally obliterated" Iran's nuclear enrichment facilities.  In an address to the American nation, Trump said that any retaliation from Iran would be met "with force far greater  than what was witnessed tonight.!

GOVERNMENT FRAGILITY CONTINUES

Portugal’s minority government, the centre-right Democratic Alliance (DA), led by Luís Montenegro, is able to proceed with its new administration programme after a no-confidence motion by the Communist Party was completely rejected this week.

In its programme, the AD government has pledged to continue cutting taxes for the middle class and companies, while maintaining budget surpluses, and maintaining a permanent dialogue with the two main opposition parties on major issues such as immigration.

The Communists this week accused the government of not helping “the interests of the workers.” They also opposed the government’s plan to raise defence spending to 2% of GDP.

For now, Prime Minister Montenegro’s fragile government has the backing of both the centre-leftSocialists and the far-right Chega party.

The Democratic Alliance won more seats in last month’s snap election than in the previous election last year, but it fell short again of a working majority, mainly because of the increasing popularity of the far right. 

The AD is in power for the time being. No new election can be called before the middle of next year. Critically, perhaps, Chega’s leader, André Ventura, has said that “it is not time to obstruct” the government, even though he does not think it is a good one.

Despite Chega’s anti-establishment and anti-immigration attitudes, Prime Minister Montenegro said this week that his government is in for the full four-year term.

PORTUGAL DAY WELL-WISHERS

Despite the past harsh criticisms of European Union countries and NATO by President Trump and Vice-President Vance, the United States Secretary of State, Marco Rubio, had very positive words to say about Portugal on Tuesday of this week.

Rubio took the opportunity of

Portugal’s National Day to express the following:

“On behalf of the United States of America, I extend congratulations to the Portuguese people as you celebrate the Day of Portugal, Camões, and the Portuguese communities.

“As a committed NATO ally, Portugal has an important role in advancing transatlantic security. We count on Portugal and all NATO allies to increase their defence spending commitment to 5 percent of GDP. This commitment is an essential cornerstone of our shared deterrence. Burden-sharing strengthens the Alliance, reinforces peace through strength, and ensures we are prepared to meet today’s threats together.

“We will continue our joint work to expand our economic and defence cooperation, increase trade and investment, and combat both illegal immigration and organised crime. These efforts advance our shared security and prosperity, which help protect the sovereignty and safety of our citizens.

“With more than 1.3 million Portuguese Americans contributing to every sector of American life, this is a partnership grounded not only in strategic alignment, but in human connection. Together, we will keep building a secure and prosperous future for our nations’ future generations.”

Portugal also received an encouraging message from the British King, Charles III. He wrote the following to Portugal’s President, Marcelo Rebelo de Sousa, emphasising hope for strong collaboration on two of His Majesty’s major personal interests: climate change and the environment.

The King wrote: “Dear Mr President, My wife and I are delighted to send Your Excellency and the people of Portugal our warmest congratulations on the auspicious occasion of your National Day.

“I am so pleased that our countries share such strong ties, and I look forward to strengthening further our friendship.

“It is my hope and strong ambition that our nations can collaborate to make a positive impact on climate change and environmental issues, which affect us all globally.

“My wife and I have great pleasure in conveying our best wishes to you and to all Portuguese in the years ahead.”

This was Marcelo Rebelo de Sousa’s last Portugal Day in office as President of the Republic. He said on Tuesday that he intends to “step down quietly” from his office. When he leaves, he says he will cease political involvement, but will attend all official ceremonies as a former head of state.