Survey says 45% of business owners say 5% defence spending increase not excessive

A significant percentage of business owners in Portugal believe that a 5% defence spending hike is not excessive.

According to ACEGE Barometer (Christian Association of Business Owners and Mangers), the majority think that Portuguese companies can take advantage of increased defence spending and the investment in different sectors that this could bring.

The survey was taken after NATO countries agreed at a recent summit in June to increase defence spending to 5% of GDP – a decision which Portuguese businesses eye as an opportunity with 73% of companies saying they are prepared to step up armaments-related manufacturing.

Some 45.13% of business owners said the 5% hike was not excessive while 39.82% said it was, and 15% did not express an opinion.

Portugal will have to make a great effort to achieve the defined objectives of 5%. To meet the 2% spending target on defence by the end of the year, Portugal will have to spend more than one billion euros, according to the prime minister. Luís Montenegro who has assured that no Amending Budget will be necessary because the country “has money” to face this year’s financial needs.

Currently, Portugal has expenditure representing about 1.55% of GDP on Defence, but has committed itself to the allies to reach a target of 2% by the end of the year.

“In total, the financial effort [to meet the 2%] will be around €1Bn, perhaps a little less, of direct investment in equipment acquisition, investment that we have already made and is in the process of valuing our human resources,” the Prime Minister told reporters after the NATO meeting.