It is no longer “unenforceable”. Government admits to spend 5% of GDP in defense

Although Montenegro recently said that spending 5% of GDP in defense would not be possible in the short term, Rangel now spoke in this possibility.

Minister of Foreign Affairs, Paulo Rangel, admitted on Monday that Portugal could increase the expenses with defense and critical infrastructures to 5% of Gross Domestic Product (GDP), in line with the recommendations of NATO Secretary-General Mark Rutte.

This was the first time a government member has publicly assumed the possibility of reaching these values, in a context of increasing pressure, especially in the United States, to reinforce European investment in defense.

Until now, Portugal invests 1.55% of GDP in defensea value away from the minimum target of 2% set by NATO. Although the democratic alliance and the PS have not included in the electoral program any commitment to increase military expenses to 3.5% or 5%, recalls the.

“In addition, we then have this 5%proposal, but Secretary-General Mark Rutte divided it into 3.5%, which will be precisely in investment in defense in the most classic and traditional sense of the term, and then 1.5% in infrastructure“Explained Rangel.

Prime Minister Luís Montenegro had already recognized that it was necessary to anticipate the goal of 2%, although he did not advance dates. In January, Montenegro classified as “unquestionableIn the short or medium term the goal of 5%, but also stressed that investing in the NAT is essential for national security and sovereignty.

The budgetary impact of such a climb would be significant: just to reach 3% of GDP, Portugal would have to double the annual expense with the Armed Forcesfrom 3 billion euros to over 6.4 billion euros. The climb to 5% of GDP would imply an even higher budgetary effort, higher than the current budget of the Ministry of Education. The Public Finance Council (CFP) has even warned of a possible 0.6% deficit of GDP if Portugal is merely 2% of the NATO.

Although Luís Montenegro has recently guaranteed in Parliament that Portugal can meet these goals without violating European rules And without questioning the social state, the government requested in April to the European Commission to activate the “national derogation clause”. This exception will allow up to 1.5% of GDP in military expenses not to count on European budgetary limits.

However, neither MNE nor the Prime Minister’s Office confirmed if the increase to 5% of GDP will formally integrate the government program.