Portugal pitches itself as defence investment hub

Portugal is offering itself as a strategic location for major defence companies, with the government seeking to attract foreign direct investment and turn the country into a supply hub for Europe’s defence industry. Speaking at eRadar’s annual conference, organized by ECO in Lisbon on Thursday, Deputy Defence Minister Nuno Pinheiro Torres said Portugal offers “unique strategic conditions” for large players in defence, space, aeronautics and cybersecurity.

Pinheiro Torres said the government has been trying to bring foreign investors into the sector, arguing that the presence of large industrial anchors would help Portuguese companies join global value and supply chains. He said Portugal combines relatively low production costs with highly qualified talent, and added that the country is promoting the installation of production lines as well as engineering, research and development centres.

He also linked that strategy to expected investments under SAFE, the European loan programme for the re-equipment of the armed forces, under which Portugal has secured €5.8 billion. According to the minister, the government expects to “see results from that programme soon”.

Pinheiro Torres said rising European defence spending could create a long-term opening for Portuguese companies. He said the European Commission “has signalled plans to propose around €131 billion for defence and space in the next EU budget cycle, five times the current level”, while funding for military mobility would rise to more than €17 billion and Horizon Europe would be reinforced with a €175 billion allocation.

For Portuguese businesses, he added, the prospect of higher public procurement in defence over the next 10 to 20 years should provide the confidence needed to invest in the sector. He described the increase in resources available for national defence as “an opportunity that both the government and companies need to seize”.

Originally published at Eco.pt