Portugal Plans Gradual Defense Spending Rise to 5% GDP by 2035

The European Commission is advancing its defense agenda in the upcoming Multiannual Financial Framework by consolidating various innovation and investment programs into a single mega-fund, including the European Innovation Council's focus on critical defense technologies and a DARPA-style approach to support startups. Concurrently, Portugal is pursuing a strategic plan to increase its defense spending to 5% of GDP by 2035 to meet NATO's new target, with incremental annual increases designed to maintain fiscal responsibility. Prime Minister Luis Montenegro emphasized the importance of bolstering Portugal's maritime and air capacities, owing to its extensive coastline and exclusive economic zone. Portugal has already accelerated its defense spending to 2% of GDP this year, four years ahead of schedule, while committing to budget surpluses and debt reduction. The move aligns with broader European efforts to enhance strategic autonomy amid global geopolitical shifts, with defense industry representatives urging Portugal to capitalize on the opportunity to become an emerging power in defense technology and armaments. This coordinated push highlights the EU and Portugal's intent to strengthen defense capabilities through innovation and increased investment.