Europe defence: Portugal will request derogation clause for expenditure caps

The Portuguese Government will ask the European Commission to activate the national derogation clause. Activating this clause allows the Government to set an exception to meeting the Union’s budgetary rules, which means that defence expenditure up to a ceiling of 1.5% of GDP may not be accounted for in the limits imposed by the net primary expense ceilings set in the Medium-Term National Budgetary-Structural Plan (POENMP), for 2025-2028. 

Likewise, expenditure relating to defence up to the ceiling stated above (1.5% of GDP) will not be accounted for in assessing compliance with the deficit benchmark amount (3%). 

This decision achieved consensus with the largest opposition party; the Socialist party was heard by the Government in this process. 

To face up to the defence challenges, the European Commission has endeavoured for the EU Member States to activate this derogation clause in order to boost funding capabilities in the sector.

Once Member States submit their requests, which should be made by the end of April, the European Commission will assess and validate the requests, including Portugal’s. 

For further information, please refer to: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_793