Lisbon, July 29, 2025 (Lusa) - Portugal's government formalised its expression of interest on Tuesday in joining the European programme of loans on favourable terms for strengthening defence, a mechanism it intends to use to cover the priority needs of the Armed Forces.
The Minister of National Defence, Nuno Melo, has set up a working group to develop the expression of interest and “subsequent formal request for financial assistance,” the ministry said in a statement.
This is the SAFE initiative created by the European Commission to support Member States in urgent investments in the technological and industrial base of defence, through loans with maturities of up to 45 years, grace periods of up to 10 years and the possibility of pre-financing of up to 15%.
At the end of May, the Council of the European Union adopted this package of €150 billion in loans on favourable terms for joint purchases to strengthen EU defence.
According to the Ministry of Defence, after the group submits the expression of interest, the SAFE working group will move on to the next phase, as mandated, focusing on the technical development of the projects and the preparation of the formal request for financial assistance by 30 November 2025.
“We will accompany this request with a detailed investment plan for the European defence industry, focusing particularly on integrating national industry into future value chains that projects financed under SAFE promote,” the statement said.
Nuno Melo’s ministry also said that the government aims to use this mechanism to cover the priority needs identified in the three branches of the Armed Forces, while also taking the “lead in two of these joint procurement projects”.
At the same time, according to the statement, Portugal intends to align all investments made in this area with NATO’s objectives, to amplify the operational capabilities identified in the strategic design of the Portuguese force system and its international commitments.
The projects presented cover ammunition, satellite systems, land systems, naval platforms, unmanned systems and other capabilities, the ministry said, adding that the European Commission is expected to indicate the amount of the ‘financial envelope’ for Portugal during August.
Following the formal request for financial assistance under SAFE, which should take place by 30 November 2026, and the formal decision by the Council of the European Union in January 2026, the authorities could start making pre-financing amounts available in the first half of 2026. Several projects are expected to start with the arrival of the first funds officially, the ministry said.
PC/ADB // ADB.
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