Lagos, Faro, Portugal, June 9, 2025 (Lusa) - The country’s president on Monday suggested greater accounting flexibility for defence spending and investment in order to reach 2% of GDP, arguing that this practice is followed in other countries and that Portugal has strict criteria.
Marcelo Rebelo de Sousa was speaking to journalists in Lagos, in the district of Faro, the city where Portugal Day, Camões Day and Portuguese Communities Day are being celebrated this year on 10th June.
The head of state, in line with the government, ruled out for now the need for an amended budget for Portugal to meet its NATO commitment to reach 2% of GDP (Gross Domestic Product) in investment and spending on national defence in the short term.
He suggested that Portugal should change its criteria for accounting for expenditure and investment in the area of national defence.
“To reach 2% [of GDP], several countries consider military expenditure to be a series of expenses that have military use, but also, for example, civil protection or infrastructure. They are military expenses but are also for civilian purposes,” he pointed out as examples.
However, according to the Head of State, Portugal has not followed this path.
“We add up what has been done, or what is planned, but we are penalised, disadvantaged, because when we do the maths, we don’t do it the way others do and they reach 2% through successive rounding. Others consider what also has military use, in addition to having other uses,” he repeated.
The country’s president concluded by saying that “this does not require an amended budget”.
“Even the increases in the statute of the armed forces are within the flexibility of the budget that was approved”, he added.
As for the fact that NATO now intends to impose a target of 3.5% of GDP on its member states for investment and expenditure on defence, Marcelo Rebelo de Sousa said that this will be “a challenge in years to come”.
“This is already a stronger option that will be discussed at the next NATO summit. Several countries are proposing that this 3.5% be divided into two parts: one part controlled by NATO and one part controlled by each country,” he added.
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