Lisbon, Sept 25, 2026 (Lusa) - The government has approved the loan agreement with the European Commission under the Security Action for Europe Facility (SAFE), which will take effect after the Court of Auditors approves it.
On Thursday, the cabinet approved a resolution which «enables Portugal to draw down the funding allocated by the European Union through the SAFE instrument, approving the loan agreement with the European Commission for €5.84 billion».
The defence minister, Nuno Melo, said in parliament this week that the loan agreement was «going through the legislative process», with approval expected this month. As for the operational agreement, another step in the process, the minister expects the parties to sign it in October.
According to the decree-law establishing the governance framework for the loans granted to Portugal under the SAFE programme, «the Loan Agreement to be concluded between the Portuguese State and the European Commission shall enter into force following the issuance of prior approval by the Court of Auditors».
Portugal's application for SAFE European loans, which are European loans on favourable terms that must be utilised by 2030, represents one of the largest ever investments in defence and includes the acquisition of frigates, the refurbishment of the Alfeite Arsenal, and the production of armoured vehicles, ammunition, satellites and drones in Portugal.
The total value of the Portuguese application is €5.8 billion. Some of the investments under the SAFE programme are already known, notably the acquisition of three new-generation frigates from the Italian firm Fincantieri – the FREMM EVO – worth €3.9 billion.
Portugal will also acquire 75 tactical vehicles for the Naval Infantry, worth €133 million, financed by SAFE, and plans to begin satellite production at the Alverca Space Hub, amongst other investments.
As part of the SAFE loans, the government has set up the Defence Investment Monitoring Committee (CAID), which career diplomat Nuno Filipe Alves Salvador e Brito will chair and which will comprise a representative from the Ministry of Foreign Affairs, one from the Ministry of Finance, one from the Ministry of Economy and Territorial Cohesion and one from the Ministry of National Defence, as well as «one representative from each of the three largest parliamentary groups», namely the PSD, Chega and the PS.
The government has also established a second body, the SAFE Audit and Control Commission (CAC-SAFE), which is responsible for supervising, auditing and monitoring the use of these funds.
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