Portugal Seeks EU Approval for Increased Defence Spending

Portugal has announced it will request the European Commission to activate a fiscal escape clause, allowing the country to increase defense spending by up to 1.5% of GDP without breaching EU budgetary limits. This move comes amid heightened pressure from the United States, urging NATO allies to boost military expenditures, and is part of a broader European initiative to strengthen defense capabilities and industry. The European Commission's proposal enables member states to raise defense spending for four years, exempting these outlays from deficit calculations that usually trigger disciplinary measures. Portugal's center-right caretaker government made the decision in consultation with the main opposition Socialist Party, reflecting bipartisan agreement. The initiative aligns with a wider European strategy to mobilize significant investment in defense infrastructure amidst ongoing geopolitical challenges.