Portugal Stands Firm: No Plans to Increase Defense Spending to 2% Despite Trump Pressure

Government's Stance on Defense Spending

Luís Montenegro, the Prime Minister of Portugal, has communicated a clear message to NATO leader Mark Rutte: Portugal will not raise its defense spending above 2% of GDP, despite pressure from Trump and NATO. Montenegro described the effort to reach this goal as one rooted in common sense, prioritizing public financial rigor without compromising the social state.

Montenegro emphasized that Portugal has made significant strides in achieving financial stability and sustainability in recent years. He reminded Rutte of the previous calls from the Dutch government for sanctions against Portugal, alongside Germany and Austria.

While he acknowledges the need to enhance defense investment, he insists that it will always be done without jeopardizing Portugal's financial balance. Just two weeks prior, he stated that a 5% GDP defense spending commitment was not feasible.

Marcelo Rebelo de Sousa, the President of Portugal, reiterated the Prime Minister's position, advocating for a balance between defense spending and budget management while addressing the social needs of Portuguese society. He argued that a strong economy and social justice are essential for reinforcing NATO, warning that a lack of social peace could fuel radicalism and opposition to NATO.

Looking ahead, the political landscape may shift with the upcoming presidential elections. Henrique Gouveia e Melo, the frontrunner in the polls, has suggested increasing defense spending by 1 to 1.5 percentage points, which would push spending closer to 3% of GDP. This potential divergence could create tension between the President and the government if Gouveia e Melo takes office in March 2026. However, sources from Belém assert that "who governs is the Government," indicating that the future President's influence may not alter Portugal's defense policy significantly.