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    1. Home
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    3. >Portugal, unlike Spain, rejects separate European army
    Finance

    Portugal, Unlike Spain, Rejects Separate European Army

    Published by Global Banking & Finance Review®

    Posted on April 15, 2026

    2 min read

    Last updated: April 15, 2026

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    Portugal, unlike Spain, rejects separate European army - Finance news and analysis from Global Banking & Finance Review
    Tags:FinanceEuropean DefenceNATOPortugalSpainEU Policy

    Quick Summary

    Portugal opposes the creation of a separate European army, preferring to modernize its forces within NATO. It raised defence spending to 2% of GDP in 2025 and is applying for €5.8 billion in SAFE loans for equipment delivery by 2030.

    Table of Contents

    • Portugal’s Stance on European Defence and NATO
    • Portugal’s Commitment to NATO
    • Parliamentary Committee Statements
    • Contrasting Spain’s Defence Policy
    • NATO’s Response and Defence Spending
    • Portugal’s Defence Budget
    • Spain’s Defence Budget
    • EU Initiatives and Future Plans
    • Portugal’s Application for EU Loans
    • Security Action for Europe (SAFE) Programme
    • Exchange Rate

    Portugal Rejects EU Army in Favor of NATO, Contrasts Spain’s Defence Policy

    Portugal’s Stance on European Defence and NATO

    By Sergio Goncalves

    Portugal’s Commitment to NATO

    LISBON, April 15 (Reuters) - Portugal is against the creation of a separate European army and instead backs strengthening and modernising its armed forces within the U.S.-led NATO alliance, the country's defence minister said, contrasting with neighbouring Spain's position.

    Nuno Melo said late on Tuesday that Portugal was a founding NATO member which valued the United States, describing Washington as a fundamental transatlantic partner.

    Parliamentary Committee Statements

    "We're not in favour of a single European army," he told a parliamentary committee, adding that Portugal needed to invest in its armed forces to ensure that they were able to fulfil their assigned missions within NATO.

    Contrasting Spain’s Defence Policy

    Amid doubts over U.S. President Donald Trump's commitment to Europe's security, Spain has urged the European Union to move towards creating a separate joint army as a deterrent.

    NATO’s Response and Defence Spending

    NATO chief Mark Rutte has dismissed calls for a European army, arguing it would cost member states far more than the 5% of gross domestic product that NATO countries - except Spain - have agreed to spend on defence and related investments by 2035. Madrid said it could meet its commitments by spending 2.1% of GDP.

    Portugal’s Defence Budget

    Melo said that Portugal increased its defence spending, under NATO criteria, to 6.12 billion euros ($7.22 billion) - or 2% of GDP - in 2025, four years ahead of the original schedule. In 2024, spending was around 4.5 billion euros, or 1.58% of GDP.

    Spain’s Defence Budget

    Spain also reached its target of 2% of GDP last year, spending 33.5 billion euros - a 44.5% increase from 2024.

    EU Initiatives and Future Plans

    Portugal’s Application for EU Loans

    Portugal has applied for 5.8 billion euros in low‑cost EU loans to strengthen its armed forces, Melo said. The new equipment including frigates, armoured vehicles, satellites and drones was set to be delivered by 2030, "if all goes well", he added.

    Security Action for Europe (SAFE) Programme

    The programme, known as Security Action for Europe (SAFE), is a 150 billion euro EU initiative aimed at reinforcing defence capabilities, closing critical gaps and jointly procuring equipment to counter potential threats to the bloc.

    Exchange Rate

    ($1 = 0.8477 euros)

    (Reporting by Sergio Goncalves; Editing by David Latona)

    Key Takeaways

    • •Portugal reaffirms commitment to NATO and rejects a standalone EU army, contrasting with Spain’s pro‑EU army stance (euronews.com)
    • •Defence Minister Nuno Melo reports Portugal increased spending to €6.12 billion (2% of GDP) in 2025, ahead of schedule, and is seeking €5.8 billion in SAFE loans (euronews.com)
    • •SAFE is a €150 billion EU loan programme facilitating joint procurement of European military equipment, with Portugal among the first eight approved for disbursement (~€38 billion total across eight countries) (euronews.com)

    References

    • EU must 'move towards creating European army', Spanish FM tells Euronews
    • EU approves €38bn in first defence investments under €150bn SAFE scheme | Euronews

    Frequently Asked Questions about Portugal, unlike Spain, rejects separate European army

    1Why does Portugal oppose a separate European army?

    Portugal values its founding NATO membership and views the United States as a key defence partner, preferring to modernize its forces within NATO rather than form a separate EU army.

    2How does Portugal's defence spending compare to Spain's?

    Portugal plans to spend 2% of GDP on defence by 2025, ahead of schedule, while Spain reached 2% of GDP in defence spending last year after a significant increase.

    3What is the Security Action for Europe (SAFE) initiative?

    SAFE is a 150 billion euro EU program aimed at strengthening member states' defence capabilities, closing gaps, and jointly procuring military equipment.

    4How is Portugal funding its military modernization?

    Portugal has applied for 5.8 billion euros in EU loans to invest in modern military equipment such as frigates, armored vehicles, satellites, and drones.

    5What is Spain's position on a European army?

    Spain supports the creation of a joint European army as a deterrent, particularly amid concerns about the U.S. security commitment to Europe.

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