Portugal is expanding its military by 25%. The decree was signed while the Defence Minister was at NATO.

Portugal is expanding its military by 25%. The decree was approved while the Defence Minister was at NATO. It's Saturday, 20 June. Thirty degrees. Rock in Rio opens at Parque Tejo today. Here's what you need to know.

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PORTUGAL IS EXPANDING ITS MILITARY BY 25%. THE DECREE WAS APPROVED WHILE THE DEFENCE MINISTER WAS AT NATO.

On Thursday, Defence Minister Nuno Melo announced that the government had approved a new decree-law raising the maximum Armed Forces personnel ceiling from 24,517 to approximately 30,800. A 25.6% increase. He made the announcement from Brussels, at a meeting of NATO defence ministers, and noted that the Council of Ministers was signing off the decree at the same moment he was speaking.

The timing was deliberate. NATO allies across Europe are increasing defence spending and military readiness. Portugal, which secured a seat on the UN Security Council last month (beating Germany with 134 votes to 104), is positioning itself as a serious player rather than a passive member. The two-year Security Council term begins January 1, 2027. Expanding the military by a quarter before that starts sends a signal to Brussels, Washington, and the alliance.

Portugal's defence budget hit €5.9 billion in 2025, reaching the NATO target of 2.0% of GDP for the first time. The new personnel ceiling provides the legal framework to recruit, but filling 6,300 additional positions is another question entirely. Portugal's military has struggled with recruitment for years. The average age of enlisted personnel is rising. The "Defender Portugal" programme (which offers free driving licences and a €439 payment to young volunteers) was a response to that shortage, not a solution.

For Lisbon residents, the expansion is unlikely to be felt directly. The additional personnel will be spread across the Army, Navy, and Air Force, with deployments focused on NATO missions, maritime surveillance of the Azores and Madeira corridors, and protection of subsea infrastructure (fibre-optic cables and energy pipelines) in the Atlantic.

The broader context matters more. Portugal is a small country with an enormous maritime territory. The Exclusive Economic Zone is one of the largest in Europe. The Atlantic Triangle (mainland, Azores, Madeira) requires constant surveillance. The Iran/Hormuz crisis has elevated the strategic importance of Atlantic shipping routes. And the UN Security Council seat means Portugal will be voting on military and peacekeeping operations worldwide for the next two years.

Bottom line: Portugal is building a bigger military because the world is asking it to. Whether it can recruit the people to fill the positions is the question the decree doesn't answer.

⚡ QUICK HITS

Saudi Arabia's Foreign Minister visited Lisbon this week. Prince Faisal bin Fahran arrived earlier this week for meetings with Portuguese officials. The visit comes as Portugal navigates the Iran/Hormuz crisis (which is driving fuel prices), prepares to take its UN Security Council seat, and introduced a windfall profits tax on energy companies in parliament. The Saudi relationship touches all three.

Counterfeiting costs Portugal's design sector €420 million a year. This week it was reported that the clothing industry bears the worst of it. For a country building a reputation in fashion, textiles, and design, the scale of the losses is significant and largely invisible to consumers.

The European Commission forecasts Portugal's GDP at 1.7% for 2026. Down from 1.9% in 2025. The January storms, energy price surge, and weakening consumer confidence are the primary drags. The EC expects a gradual recovery through the second half, helped by RRF investment.

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🍽️ SPOT OF THE DAY

MEMMO ALFAMA TERRACE (ALFAMA)

It's 30 degrees. Rock in Rio is at Parque Tejo. The city is loud, busy, and moving in every direction. And above it all, on a terrace in Alfama that most people walk past without knowing it exists, there are cold drinks and a view that makes you forget about all of it.

The Memmo Alfama Terrace sits on the first floor of the boutique hotel at Travessa das Merceeiras 27, tucked into the narrow streets behind the Sé. It's open to non-guests, which most people don't realise. The terrace wraps around a red swimming pool that blends into the red rooftops below (the pool is hotel guests only, but the view is for everyone). From the railing, you look south across the Alfama rooftops, the Tagus, and the south bank. On a clear day, which today is, the light is the kind that makes you reach for your phone and then put it down because the screen can't compete.

The wine list leans Portuguese and is taken seriously. Cocktails are well made. The food is Portuguese tapas: small plates, salads, light enough for a hot afternoon. Portions are on the smaller side, and the prices are what you would expect from a hotel-bar (expect €10-14 for cocktails, €8-15 for plates). You're paying for the setting. On a Saturday like today, that's a fair trade.

The honest notes: the terrace can be hard to find (follow signs through the hotel entrance, not the street). Service has been inconsistent in some reviews. No individual dinner reservations are accepted, so arrive and take what's available. And the terrace is 16+ only due to pool safety.

→ A hidden terrace above Alfama with one of the best views in the city. Find them here ←

Alfama, on Travessa das Merceeiras. Enter through the hotel.

Insider tip: Arrive at 5pm before the sunset crowd. Order a glass of Portuguese white and whatever tapas the waiter recommends. Watch the light change. Leave when you're ready.

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