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What is Portugal’s contribution to European Defense in 2023?

What is Portugal’s contribution to European Defense in 2023? portugal news
What is Portugal’s contribution to European Defense in 2023? - Portugal Business News

Portugal news - What is Portugal’s contribution to European Defense in 2023?

In May 2022, an analysis by the European Defense Agency presented the EU recommendations to enhance the industrial and technological base of European defense. During the year 2022, Portugal invested nearly EUR 282 million in the Defense sector, with EUR 133.88 million in the air force, EUR 80.12 million in the navy and EUR 67.80 million in the army.

However, with regards to defense spending, the analysis by the European Defense Agency reveals that, despite the fact that EU countries have announced increases in their defense budgets for an additional 200 billion euros in the coming years, the lack of coordination between member states would lead to fragmentation. This may be seen in the fact that, from 1999 to 2021, the EU's combined defense spending increased by 20%, against 66% for the United States, 292% for Russia and 592% for China.

In April 2023, Portuguese aerospace companies signed an MOU with Brazilian defense manufacturer Embraer during the state visit of Brazilian President Lula da Silva in Portugal. The aim was to develop Portugal’s defense technological and industrial base. The Portuguese partners to the agreement included the Center for Engineering and Product Development (CEiiA), Empordef Information Technologies (ETI), GMV and OGMA.

Portugal’s commitment was to increase the defense capabilities of the air force sector, namely for the continuous development of technologies related to Embraer’s A-29 Super Tucano, the military aircraft that is used by the air force of 15 countries, including the United States.

With the recent launch of Embraer’s A-29N version, that is designed according to NATO standards, the partnership with Portuguese aerospace companies is seen as being especially relevant for EU countries. The A-29 Super Tucano aircraft can perform a wide range of missions, including light attack, surveillance, aerial interception, and counterinsurgency. However, since the aircraft needs to be built in Europe in order to meet NATO’s requirements for selling to European countries, Portugal is well positioned for contributing to European defense in the coming years.

Moreover, the European Defense Industry Reinforcement Through Common Procurement Act that provided for an initial amount of EUR 500 million, as a joint acquisition tool to pave the way for urgently restoring Defense capabilities, is meant to establish the conditions for the European Defense Investment Program, through which Member States will be able to implement joint procurement.



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