1. Spending 5% of GDP on Defense “Is Not Feasible,” Warns the Portuguese Prime Minister
Luís Montenegro, the Prime Minister of Portugal, emphasized that spending 5% of GDP on defense, as suggested by Donald Trump, “is not feasible” in the short or medium term. He clarified that while it’s understandable to request a greater effort from NATO members during times of increased demands, Portugal’s government is focused on meeting its 2% defense spending goal by 2029. Montenegro stated that this target would be reassessed if necessary, but he warned against constantly commenting on remarks made by U.S. leaders, as it serves little benefit.
Montenegro also rejected the idea that increasing defense spending would undermine social support. He argued that the focus on defense is aligned with creating jobs, developing technologies, and boosting industrial sectors. Investment in defense, he stated, also generates financial resources for the state, which can contribute to social expenditures. The Prime Minister pointed out the importance of maintaining a balance between investing in defense and securing social services, emphasizing the economic benefits of a strong defense industry.
Finally, the Prime Minister reiterated Portugal’s commitment to supporting Ukraine and contributing to NATO’s defense efforts. He outlined the ongoing collaboration between the Ministries of Economy and Defense to stimulate defense projects in Portugal and attract foreign investment. By boosting the local defense industry, Montenegro believes Portugal will strengthen its sovereignty, security, and economic resilience, benefiting from job creation and technological advancements.
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2. Lisbon’s New Airport Set to Open in 2037
The Luís de Camões Airport, set to open in 2037, will have a capacity of 45 million passengers, 10 million more than Humberto Delgado Airport. According to ANA’s report, this new infrastructure could potentially open as early as 2036. By 2060, the airport is expected to accommodate 52 million passengers, reflecting long-term air traffic growth forecasts for Western Europe and addressing Portugal’s specific challenges, including sustainable tourism growth in the Lisbon region.
The airport’s area will be five times larger than Humberto Delgado, spanning nearly 2,500 hectares at the Campo de Tiro de Alcochete, located on the southern bank of the Tagus River. This large-scale hub project will involve parallel infrastructure developments, including a new bridge (the Third Tagus Crossing), expanded road and rail access to Lisbon, and necessary supply infrastructures. The complexity of these works requires significant excavation work and careful coordination of various types of construction.
The government has given ANA the green light to prepare the application for the Luís de Camões Airport, following the delivery of the Initial Report in December 2024. The primary focus in negotiations between the government and ANA will be cost reduction, financing, and project timelines. The Ministry of Infrastructure and Housing emphasized that the government’s approval for ANA to proceed does not signify acceptance of the report’s terms, conditions, or assumptions.
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3. Portuguese to Attend Davos to Discuss Energy, AI, and Skills
Davos will host over 900 influential figures, including at least ten representatives from Portugal, such as António Guterres, Cláudia Azevedo, Miguel Stilwell, Graça Carvalho, and Paulo Rangel. The Portuguese delegation will engage in discussions under the theme “Collaboration for the Smart Era,” focusing on energy, AI, and skills. Minister Graça Carvalho will participate in a panel on shaping the geoeconomy of energy and materials, alongside global experts like Fatih Birol and Muhammad Taufik, addressing the rising demand for energy and investments in clean energy, projected to hit $2 billion in 2024.
Artificial intelligence will be a dominant topic, with Portuguese entrepreneurs like Luís Valente, CEO of iLoF, discussing innovations in personalized medicine through non-invasive AI. Cláudia Azevedo, Sonae’s CEO, will also speak about the need for collaboration to bridge skill gaps and enhance business productivity, alongside global leaders like Joe Ucuzoglu from Deloitte. Note that the Portuguese presence reflects the country’s increasing involvement in global discussions on technological advancements and their economic implications.
Davos 2025 will also see the return of global leaders like Donald Trump and Volodymyr Zelensky, with other key figures including Ursula von der Leyen and Olaf Scholz. Even though António Costa will not attend, the event will remain a significant gathering for political leaders, business executives, and experts to discuss urgent global challenges. The Swiss government has mobilized 5,000 military personnel to secure the venue, as the World Economic Forum continues to focus on cooperative solutions in an increasingly uncertain world.
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4. Autoeuropa Produced More Than 236,000 Cars in 2024, the Best Year Since the Pandemic
In 2024, Volkswagen’s Palmela factory produced 236,100 cars, marking the second-best production year, just behind 2019’s record of 254,600 units. Despite factory shutdowns for modernization, the year ended as the best since the pandemic, with the factory starting 2025 by producing a T-Roc R-Line model for the German market. Autoeuropa continues to be a key player in the automotive industry, with 99% of its production directed to exports, primarily to Germany, Italy, and the UK.
Thomas Hegel Gunther, the general director, highlighted the dedication of the teams, noting that the completion of the first car of 2025 signifies a new production cycle. The Palmela plant is ready to continue achieving solid results in the coming years, reflecting a strong recovery post-pandemic. Additionally, despite global challenges, Volkswagen has assured that the Autoeuropa factory won’t be affected by workforce reductions or factory closures in Germany, which are linked to the competition from Chinese manufacturers and declining demand in China.
On a national scale, Portugal’s automotive production grew by 4.5% in 2024, reaching 332,546 vehicles. The success of Autoeuropa is part of the broader growth in Portugal’s automotive sector, which continues to thrive amidst global challenges facing major manufacturers like Volkswagen.
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5. NGO Files Complaint Against Portugal, Spain, and France for Failing to Control Fishing Fleets
Portugal, alongside Spain and France, has received a complaint for not controlling its fishing fleets, particularly in protected marine areas. The investigation, conducted by the Deep Sea Conservation Coalition (DSCC) and Marine Conservation Institute, reveals over 400 cases of suspected fraud in illegal fishing activities. Despite regulations such as the 2016 deep-sea fishing ban and the 2022 closure of 87 vulnerable marine ecosystems (VME), Portuguese ships continue to fish in prohibited areas, violating laws meant to protect fragile ecosystems.
The report highlights the involvement of semi-industrial Portuguese trawlers, including Praia Lusitana, Florimax, and Avo Nico, which are responsible for a large portion of the illegal fishing hours in closed zones. These vessels have been accused of “deliberate violations,” contributing to the “silent destruction” of ecosystems rich in biodiversity, home to ancient corals and species like deep-sea sharks. The illegal activity is a breach of the EU’s effort to preserve marine life, with 500 hours of illegal fishing attributed to Portuguese ships in these protected areas.
Despite the severity of the issue, the Portuguese government, along with Spain and France, is accused of “closing its eyes” to the problem. The Bloom organization urges the European Commission to close more areas to fishing, enforce stronger surveillance, and adopt sanctions against industrial fishing fleets. Portugal’s role in the destruction of these ecosystems underscores the need for urgent action to uphold marine protection laws and safeguard the oceans.
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6. In Portugal, the Prices of Homes Increased by 11% in 2024
In 2024, house prices rose 11%, slightly below last year’s 11.8% increase, with the average price at €2,573 per m². The number of homes sold surged 27.2% to 41,737, marking the highest sales since the financial crisis. The last quarter of 2024 was just 5.4% lower than the same period in 2021, showing strong market resilience.
The first quarter saw a slight decrease of 3.1% in sales, but recovery began in the second quarter, leading to a 6.4% increase in sales compared to the previous three months. This growth continued, culminating in a 27.2% rise from the same period in 2023.
With projections estimating 148,434 homes sold in 2024, up 13.1% from 2023, the market’s momentum suggests an ongoing recovery despite the modest slowdown at the year’s start. The growth in sales reflects a resilient real estate market rebounding strongly in the latter part of the year.
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7. DBRS Upgrades Portugal’s Rating and Commends Reduction in Public Debt
The rating agency DBRS has raised Portugal’s long-term issuer rating from “A” to “A (high)” with a stable outlook. At the same time, the agency upgraded the short-term issuer rating from R-1 (low) to R-1 (middle), with all ratings shifting from Positive to Stable. The upgrade reflects DBRS’s view that the “notable reduction in Portugal’s public debt, supported by strong fiscal performance, has strengthened the country’s creditworthiness.” The agency also highlighted the significant reduction in external vulnerabilities over the last decade and a more resilient banking system.
DBRS emphasizes that Portugal’s current fiscal position is one of the strongest in the Eurozone. The country posted a general budget surplus of 1.2% of GDP in 2023 and is expected to record small surpluses in 2024 and 2025. The approval of the 2025 budget is seen as a positive sign for the short-term durability of the current government. The public debt-to-GDP ratio in Portugal has significantly decreased from 116.1% in 2019 to 97.9% in 2023 and is expected to fall below 90% in the next two to three years.
The stable outlook reflects DBRS’s view that the risks to credit ratings are balanced, supported by Portugal’s membership in the Eurozone, its adherence to EU economic governance, and the strong fiscal performance since 2016. The banking system’s improved position further supports the country’s credit rating. However, the agency pointed out that key vulnerabilities include high public debt, substantial external debt, and relatively low economic growth potential. Managing these issues could become more difficult if interest rates remain elevated for an extended period. This is the first rating agency to assess Portugal’s credit, with the agency maintaining Portugal’s rating at “A” and improving the outlook to “positive” six months ago. Ratings from Standard & Poor’s, Fitch, and Moody’s are still pending.
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8. Cultural Heritage 360 to Open 65 Museums and Monuments for Virtual Visits
The Cultural Heritage 360 project, developed over the past year, aims to provide a digital platform offering free and remote access to Portugal’s cultural heritage. The initiative includes 12 documentary films and 59,500 2D and 3D scans of movable cultural assets from 65 museums, monuments, palaces, and archaeological sites under the Ministry of Culture’s supervision. The platform, expected to launch by the end of 2025, will open virtual visits to key cultural sites such as the Arouca Monastery and Miranda do Douro Cathedral, marking a significant step in the digital transition of the cultural sector.
At a presentation on January 16, 2025, the Secretary of State for Culture, Maria de Lurdes Craveiro, and the President of Museums and Monuments of Portugal, Alexandre Pais, highlighted the project’s significance. Pais noted that the project ensures the preservation of cultural knowledge for future generations and fosters new research opportunities. The project will allow users to view digitized cultural objects in high resolution, potentially using 3D glasses to explore the items in intricate detail.
The Cultural Heritage 360 project is financed by the European Union through the Recovery and Resilience Plan (PRR), with a budget of 11.7 million euros. A multidisciplinary team of over fifty experts, including IT professionals, conservators, photographers, designers, and social science researchers, is working on the digitization, which is expected to be completed by 2025. Some pieces are already available in the online archive, and the project can be followed remotely through the Cultural Heritage Making Off page.
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9. Try Michelin Dishes and 100 Wines at Torel Palace in May
From May 16 to 18, Vinho da Casa will take place at Torel Palace Lisbon, offering wine tastings, dinners by Michelin-starred chef Vítor Matos, and intimate concerts. Over three days, 20 national wine producers, including Niepoort, Susana Esteban, and Casa Ferreirinha, will present 100 wines throughout the hotel. Guests can enjoy three rotating dinners prepared by Vítor Matos, paired with wines from producers like Quinta da Vacaria. The program also features shows with artists and winemakers showcasing talents from music to poetry, including a concert by Brazilian singer Adriana Calcanhotto.
In addition to wine tastings, Vinho da Casa offers three masterclasses, led by renowned critics such as Dirceu Vianna Junior, Jamie Goode, and Manuel Carvalho. Limited to 14 people, each session will include tastings of older vintages and will be guided by experts. Early bird tickets are available until February 28, with options for a daily pass or a ticket with a masterclass. Guests who book a stay at the hotel will also have guaranteed access to the event.
Where? Torel Palace Lisbon. When? May 16-18, from 3pm to 10:30pm. How much? From 195 to 345 euros.
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10. Lisbon Metro Opened Three Stations to Homeless People
The doors of the Santa Apolónia, Oriente, and Rossio stations remained open during the early hours of January 18 and 19, “in response to the extreme cold conditions felt in the city of Lisbon,” announced the Lisbon Metro in a statement on Friday.
This initiative, developed in collaboration with the Lisbon City Hall, comprised part of a set of measures to implement the Contingency Plan for homeless individuals. It also included the distribution of “Metro kits,” which consisted of a blanket and a hat.
In coordination with the Municipal Police, Lisbon Metro also announced the reinforcement of surveillance and cleaning actions at the designated stations, emphasizing “its commitment as a socially responsible entity.”
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