European Commission gives Portugal green to spend more in defense

The European Commission (CE) authorized Portugal to invest more in defense without risking excessive deficit procedure. Brussels endorsed the activation of the national exhaust clause under the budget rules of the European Union.

“From 2025 to 2028, Portugal is authorized to differ and exceed maximum growth rates of liquid expense (…), as liquid expenditure exceeding these maximum growth rates is not higher than increased GDP percentage expense since 2021 and as long as excess deviation from maximum GDP maximum growth rates,” not exceed 1.5% of GDP ”, Indicates the community executive in a recommendation to the Council.

The information is published this Wednesday, the day CE releases the spring package of the European semester, the annual European Union (EU) framework to coordinate economic, budgetary, social and employment policy.

And after, at the end of April, Portugal has formally requested the Commission to activate the clause that allows part of the investment in defense to be exempt from compliance with the budgetary rules within the community strategy to strengthen the EU military capabilities.

In the report on Portugal, now released, the institution recommends that the country “reinforces global defense expense and military readiness”, and should “respect the maximum growth limits of liquid expense” and “make use of the margin expected in the national exhaust clause for an increase in defense expense”.

CE has already warned that it will monitor the country’s deviation from the necessary investment in defense, asking for budgetary balance.

In general terms in the EU, Brussels estimates that the level of defense expenses up to 1.5% grows GDP by about 0.5% by 2028.