Published by Global Banking & Finance Review®
Posted on November 5, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GooglePortugal seeks to replace its F-16s, encouraging competition between US and European jet makers to maximize benefits and strengthen NATO ties.
LISBON (Reuters) -Portugal wants to foster competition between makers of U.S.-made F-35s and European advanced fighter jets in the replacement of its ageing fleet of F-16s in order to maximise benefits, Defence Minister Nuno Melo said on Wednesday.
His latest remarks appeared more open to a possible deal with the U.S. than comments in March, when he suggested President Donald Trump's unpredictable policy shifts towards NATO and Europe could make Portugal pick a European fighter.
Trump has since reaffirmed commitment to NATO while forcing the alliance's European members to up military spending.
Melo told a parliamentary committee the process to select new jets was yet to kick off, and when it does, the government will consult the Air Force and take into account "returns for the country and its industries".
Benefits to both manufacturers and purchasing countries can include industrial participation, technology transfers and financing. (did Melo say that, or is that from us?)
"When there are several competitors, it means that the price goes down," Melo said..
The European Commission is urging EU countries to identify key defence needs and launch major pan-European projects to strengthen deterrence against Russia, emphasising that equipment should be sourced from within Europe wherever possible.
Melo said Portugal wants to "strengthen the European pillar of NATO" and supports producing and buying more in Europe, granted that the best equipment is available there, while always looking at both sides of the Atlantic.
(Reporting by Sergio Goncalves; Editing by Andrei Khalip)
NATO, or the North Atlantic Treaty Organization, is a military alliance of countries from North America and Europe, established for mutual defense against aggression.
Fighter jets are military aircraft designed primarily for air-to-air combat against other aircraft, but they can also engage ground targets.
Industrial participation involves local industries in defense contracts, enabling technology transfers and economic benefits to the purchasing country.
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