When will Portugal achieve the NATO target of investing 2% of its GDP on Defence?

When will Portugal achieve the NATO target of spending 2% of its GDP on Defence? - Portugal Business News

Defence News Europe: Here is the update as at June 30th 2025 on the dates when Portugal will achieve the NATO target of spending 2% of GDP on Defence and the year when Portugal will reach a Defence spending of 5% of its GDP, as well as the announcement of the launch of Portugal's candidacy for non-permanent membership of the United Nations Security Council.  

1 - How much will Portugal spend on its Defence budget in 2025?

Portugal initially announced that it would increase its Defense budget by one billion euros in 2025. However, Portugal's Defence budget will be much higher since the country has announced that it will send 2% of it GDP on Defence since 2025.  

2 - On what will Portugal spend its Defence budget in 2025?

Portugal will spend its Defence budget on direct investment for the acquisition of equipment, infrastructure and the development of human resources, according to Portuguese Prime Minister Luís Montenegro. Portugal's Defence Budget will be spent on:

1. The development of state-of-the-art infrastructure, equipment and technological systems for the Army, Navy and Air Force.

2. Strengthening cyber defense capabilities and responding to emerging threats.

3. The focus on dual-use investments (civil and military) and on food resilience strategies for crisis situations

4. Deepening European integration in the areas of security, defence and economy, and supporting the enlargement of the European Union, including to Ukraine and the Western Balkans

5. The launch of Portugal's candidacy for non-permanent membership of the United Nations Security Council.

3 - When will Portugal achieve the NATO target of spending 2% of GDP on Defence?

On June 29th, 2025, the Portuguese Government announced that Portugal will spend 2% of its GDP on Defence in 2025, that is four years ahead of the target initially planned.

Portugal and NATO allies have also added a strategic review clause set for 2029, depending on the evolution of the geopolitical context, the strategic context and the possibility of achieving some capability objectives.

4 - When will Portugal achieve the NATO target of spending 5% of GDP on Defence?

By 2029, Portugal will progressively be in a position to meet the final objective of spending 5% of its GDP on Defence by 2035.

Portugal will therefore be able to meet the target set by the North Atlantic Treaty Organization (NATO) Summit to allocate 5% of the Gross Domestic Product (GDP) of each of the 32 countries to Defense by 2035.

Portugal and the other NATO allies have undertaken to reach a goal of 3.5% of GDP on Defence and security over a period of 10 years, that is by 2035. A further 1.5% of GDP will indirectly be spent on traditional military equipment and training, to which will be added dual-use investments in both civilian and military sectors. Portugal’s Defence spending is therefore expected to include cybersecurity, readiness and strategic resilience sectors.

5 - What is Portugal’s position towards the United States-EU Defence policy?

Portugal’s Prime Minister, Luís Montenegro, has stated that “we are partners of the United States, we are allies of the United States and there is no doubt about that”. He added that “obviously, this is not a conclusion that takes away space for us to critically assess each position and we have done so according to the circumstances”.