Montenegro to allocate 3.5% of its GDP annually for defense: Budget to surge by €450 million annually over the next decade.
Getting their Battleships in Order
Portugal's Prime Minister has dropped a bombshell, announcing a plan to boost defense spending to a whopping 3.5% of the country's GDP by 2035. In essence, they're planning to shell out like it's going out of style, again and again, more frequently than the launch of a firework display!
Vítor Matos, at The Hague
The decision comes hot off the heels of a NATO summit where allies pledged to collectively increase core defense spending. By 2035, member states are expected to fork over 3.5% of their GDP, with an additional 1.5% for defense-related investments. In other words, they're aiming for a 5% GDP target, combining both direct military expenditures and related security investments[2].
This commitment to ramp up defense spending is sparked by the ongoing Ukraine-Russia conflict and the perceived need to bolster military readiness and capability in Europe[2]. It's seen as a pivotal move in bolstering NATO's collective defense mandate[2].
The increased budget empowers Portugal to invest in modern military hardware, maintain well-trained troops, and fund dual-use infrastructure, thereby bolstering both national defense and NATO's collective capabilities[2]. This includes upgrading the military arsenal, investing in new technologies, and enhancing troop readiness, all crucial for maintaining operational effectiveness within NATO frameworks[3].
Allocating funds towards cybersecurity and infrastructure resilience will boost Portugal's capacity to thwart hybrid threats and safeguard critical national and alliance systems[3]. This commitment, although ambitious, comes with some wiggle room. Mid-term reviews will assess countries' spending trajectories, allowing Portugal to fine-tune its defense investments according to economic conditions while pursuing capability improvements[4].
In a nutshell, Portugal's decision to hike defense spending by 3.5% of GDP by 2035 is rooted in the need to stay locked and loaded in a tense geopolitical climate. This move will significantly bolster Portugal's military readiness, modernization, and resilience, amplifying both national defense and the broader NATO alliance posture[2][3].
In this increased military spending landscape, Portugal's aerospace and finance industries may see growth, as the country seeks to invest in modern military hardware and new technologies. With the enhanced budget, these sectors could potentially play key roles in strengthening both national defense and NATO's collective capabilities, including upgrading the military arsenal, bolstering troop readiness, and improving cybersecurity and infrastructure resilience.
