OR Portugal will ask the European Commission to use the escape clause that will allow the European Union’s budgetary rules to be exempted so that countries can adapt the increase in spending defense.
Using the clause, defense costs corresponding to up to 1.5% of the gross domestic product will not be included in the spending limits, the Portuguese Treasury said in a statement.
Prime Minister Luis Modenegro, who is facing early elections on May 18, said Portugal will submit a plan to achieve NATO’s goal for defense spending, but has not given a new date. The government was planning to achieve the goal set for NATO allies to have defense spending corresponding to 2% of the gross domestic product in 2029. Defense spending is estimated to have reached 1.55% of GDP by 2024.
The Portuguese government has said it aims to continue to record budget surpluses each year and has predicted a 0.3% surplus of GDP this year.