Portugal Met NATO Target of Spending 2% of GDP on Defense

Portugal has met the NATO benchmark by increasing its defense spending to 2.01% of its gross domestic product.

This is according to data from the Alliance’s annual report, which was released ahead of the NATO summit in Ankara, as reported by JN.

The country has shown the largest annual increase in military funding over the past decade, raising its total budget to €6.1 billion.

Over the past year, Portugal’s defense budget has grown by approximately €1.6 billion compared to the previous figure of €4.4 billion.

A previous significant increase in funding was recorded between 2023 and 2024, when the defense budget was increased by €919 million. Despite the current growth, Portugal still ranks among the allies with relatively low levels of defense investment, as the NATO average stands at 2.7% of GDP.

Minister of National Defence Nuno Melo stated that the country has met the target set by the Alliance more than ten years ago. Lisbon has aligned with the general European trend amid a reduction in U.S. financial contributions and new requirements from the recent summit in The Hague, which committed NATO members to reaching 5% of GDP by 2035.

The bulk of Portugal’s military budget is allocated to personnel costs, although this share has decreased from 54.7% to 45%. Second is the ‘other expenses’ category, at 31.3%, which includes operational expenses, equipment maintenance, and research programs.

In contrast, Portugal’s spending on the procurement of weapons and military equipment has risen from 15% to 21%, while 2.1% of the budget has been allocated to infrastructure development. The country is currently implementing projects in Turkey, where two support vessels — the Luís de Camões and the D. Dinis — are being built at local shipyards, with a delivery date set for 2028.

Earlier, Melo visited Turkish defense companies to expand industrial partnerships. During that visit, the Portuguese delegation toured the facilities of Baykar, a company specializing in the production of strike and reconnaissance unmanned aerial vehicles.

At the same time, Portugal has applied for €5.8 billion in funding through the European SAFE credit facility. The government plans to spend these funds on rearmament, including the purchase of new frigates, satellites, armored vehicles, artillery, air defense systems, and drones.

As a reminder, Portugal will purchase 90 Boxer armored wheeled vehicles from Germany.

These are likely to be variants with or without a light combat module featuring a 12.7 mm machine gun, as well as versions equipped with a 30/35 mm cannon in an IFV configuration.