Portugal may buy three frigates from Italy or France

The defence ministries of Portugal and Italy have signed ‘Statements of Intent’ on cooperation in industry against a backdrop in which Italy is applying to sell three frigates to the Portuguese Navy.

At the São Julião da Barra Fort today, standing alongside his Italian counterpart Guido Crosetto, Nuno Melo told reporters that “at this time, no decision has been made” on this deal since the French are also keen to sell frigates to Portugal.

The deal is for the acquisition of two or three frigates, which, according to the newspaper Expresso could involve between €2-3Bn which is currently being competed for by Italy’s Fincantieri and France’s Naval.

France has promised to invest “tens of millions” in Portugal’s naval industry if the Portuguese navy buys its frigates.

The investment would include modernising the Arsenal do Alfeite and channeling a relevant amount of funds directly to national industry and the economy.

“What we are doing today is a strategic partnership in different domains – land, sea, air and space – which will be leveraged in the ability of the industries of the two countries (Italy and Portugal) to cooperate with a strategic vision. We have not discussed any specific equipment”, said the Defence Minister.

Regarding the French and Italian bids for the sale of two or three frigates, Nuno Melo considered that the decision to be taken by Portugal was “fundamentally technical”.

“The three branches of the armed forces and the Directorate-General of Armaments and Defence Patrimony will evaluate and advise the government of which options best serve the navy and armed forces taking into account the current geopolitical situation.

“There’s a vision and a purpose but we have to take a calm path” said Defence minister Nuno Melo, stressing that these were “very high amounts – “investments for a generation”. “We have to ensure that the decision is very rational and reflects our possibilities”, he added.

The government will have to present its plan to guarantee an envelope of €6Bn in European loans from the SAFE Programme (Security Action for Europe).

The programme is a new €150Bn financial instrument providing loans to EU member states to enhance their defense readiness.

Adopted in May 2025, it offers competitively priced loans to finance joint procurement of defense products, aiming to close critical capability gaps and boost the European defense industry. To qualify, member states generally must conduct common procurements with at least one other country.

Portugal stands to get €6Bn which it must spend by 2030 on military hardware and defence products.