The economic and financial crisis influence on the Portuguese Armed Forces
Portugal has just finished reviewing its National Strategic Defense Concept (NSDC),
essentially for three main reasons: firstly, the adjustment of the international
geostrategic environment with the rise of Latin American and Euro-Asian influence.
Secondly, the responsibility to contribute further to the international security
environment as prescribed in the NATO strategic concept and in the EU Lisbon Treaty.
Thirdly, the deep economic and financial crisis affecting Europe, in general, and
Portugal in particular, forcing the country to negotiate a foreign aid program and
imposing severe measures of fiscal restraint, with profound implications in state
functions.
The change in the geostrategic environment forced Europe to rely more on her own
and to do more for her own security, at a time when North Africa and the Middle East
are not stable or more secure. When each European country must fully assume its
responsibilities within the European security, one should not forget that, the most
important factor affecting that ability is the economic recession.
According to the new NSDC, the Portuguese economic and financial crisis overlaps with
the European one, marked by an increasing uncertainty about the European Union’s
(EU) future and about the fate of the transatlantic community, considered the two
main pillars of the international order, reinforcing the Portuguese sovereignty. If
emerging security crises nearby Europe tend to unite the EU member states, the
economic and financial crisis seems to drive them apart and put into question the
European project itself.
In this context, it is crucial that Portugal clearly defines its national priorities, to
prevent isolation and loss of autonomy, which would represent an unprecedented
danger since the institutionalization of the Portuguese democracy.
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The new National Strategic Defense Concept 1
Although there are three main reasons why the NSDC was revised, in reality the
Portuguese economic and financial situation is the main factor affecting the entire
national strategy, not only in the security and defense area, but in all domains.
The 2003 NSDC was driven by external factors and by the global security environment
that came out of the September 11 events. Ten years later, it is mainly the Portuguese
internal situation driving the national defense strategy, giving a clear emphasis to the
need of connecting "ends and ways to the means." The NSDC establishes three rules:
ensure strategic unity by integrating all aspects of security and defense towards
common goals; coordinate between all stakeholders in this process to maximize the
national strategic potential, and promote a more efficient use of resources. The
objective is to integrate, coordinate, streamline and efficiently use the country’s
means. This was the plan behind the entire NSDC development.
While the 2003 NSDC stated that "our economic and political geography is European"
and "our geographic security and defense is Atlantic and European", indirectly defining
the areas of national interest, the new defense document uses a direct approach to
declare the two geographical areas of greatest significance to Portugal. "Europe is the
main geographical area of national strategic interest" and "additionally the bilateral
alliance with the United States and the cohesion of the Atlantic Alliance, make the
Euro-Atlantic area the second geographical area of standing strategic interest."
These "national interests arising from the Portuguese status as an Euro-Atlantic
democracy - with universal calling and with limited resources – create the need of
being integrated into a network of stable and coherent alliances", that basically share
the same democratic ideals, such as NATO, a consolidated military and political
Alliance, where Portugal defends its Atlantic identity. Another is the EU, a political
institution drawn upon an economic framework, where Portugal defends its European
1
Presidency of the Council of Ministers, 2013. National Strategic Defense Concept, Lisbon: Official
Journal of the Portuguese Republic
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character, and the Community of Portuguese Speaking Countries, where Portugal
preserves its history and heritage.
In this Euro-Atlantic context, recognized and defined by the strategic alliances we have
established, "the boundaries of national security go beyond the territorial limits" and
the frontiers of each European state are increasingly the outer borders of Europe.
Europe’s common security is being assured more and more outside the European
geographical area. For obvious reasons, Portugal cannot renounce its international
security sharing duties, especially in an area defined as its first priority, and neither
renounce its obligations within the organizations and institutions it belongs to, even in
a context of severe budget constraints, otherwise it risks standing proudly alone,
delivered to its own fate.
Our security and very own existence as an independent state are very much attached
to Europe’s defense, wherever it is made. Not only should we be well aware of it, but
it is especially important, regardless of the existing budget difficulties, to maintain our
Armed Forces, the last stronghold of a sovereign state, adequately-ready and
motivated.
Impact on the military 2
The financial crisis is not exclusively Portuguese and is forcing several European
countries straddling similar paths, and to seek "efficiency, economy of scale and
innovation vectors", as well as a greater integration within the Armed Forces.
In Portugal, the ongoing Military transformation process was forced to accelerate in
order to guarantee sustainability. A defense reform program, called «Defense 2020»,
proposes to establish a new model for the Armed Forces, which is sustainable, realistic
and seeks to balance the political objectives with the available resources and the
accepted risks. In «Defense 2020», the Military is a fundamental State security
2
Presidency of the Council of Ministers, 2013. Defense 2020, Lisbon: Official Journal of the Portuguese Republic
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component and a source of prestige to Portugal, allowing it to contribute to the
international stability and security.
The «Defense 2020», whose center of gravity is sustainability, seeks efficiency and to
eliminate functional redundancies. It also intends to reduce operating costs and to
standardize the working methods, while enforcing internal coordination and external
cooperation.
In the years to come, whether the national production capability increases or not, it is
expected that the available defense budget will vary between 1.0% and 1.2% of the
GDP, which requires a tight management and keeps the focus on efficiency.
Since the spending with personnel currently represents about 80% of the defense
budget, in order to keep performing the assigned missions and tasks, it is imperative to
reduce this value. In this sense, the reform aims to allocate 60% of the defense budget
to the personnel, 25% for operation and 15% for investment.
The «Defense 2020» foresees having between 30,000 and 32,000 military personnel
and expects a 30% overall reduction in infrastructures, and another 30% reduction in
the civilian personnel by the end of 2015.
It includes a restructuring of the Defense Department and the Armed Forces as well,
through a greater integration of command, administrative and logistical services.
Similar reforms will affect the military education, recruitment and procurement.
A new level of ambition for the Portuguese Armed Forces 3
The «Defense 2020» aims for modular, flexible, deployable and interoperable forces, in
the form of an Immediate Reaction Force (IRF), Standing Defense Forces (SDF) and
Deployable Modular Forces.
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Presidency of the Council of Ministers, 2013. Defense 2020, Lisbon: Official Journal of the Portuguese Republic
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The Immediate Reaction Force (IRF), a high readiness force, is ready to evacuate
Portuguese citizens from crisis or conflict areas, in case of need, and also to respond as
a first aid to complex emergency situations such as natural or manmade catastrophes;
The Standing Defense Forces (SDF) are mainly responsible "to ensure the sovereignty,
independence and territorial integrity of the state.” Additionally they execute other
public interest missions, "associated with the sustainable development and well-being
of the people", autonomously or in coordination with the national civil authorities.
The Deployable Modular Forces are trained, prepared and equipped to be sent abroad,
under a UN, NATO or EU mandate, to support solving crises that threaten peace,
stability and the international security. Whether they are in Kosovo, Mali, Lebanon,
Afghanistan, Gulf of Aden or Uganda, they represent a part of the Portuguese
contribution to a stable and secure environment, leading conditions for peace and a
sustainable development.
In the new level of ambition, Portugal expects to participate, if necessary, for periods
of six months, in three small joint operations or one major joint operation.
In a nutshell, the Armed Forces intervene in three inseparable areas: Defense, whether
it refers to national defense of a NATO member defense, under the Alliance Article 5;
Cooperative Security within NATO, EU or UN mandates and Human Security in a
national perspective or in support of an UN mandate, for those cases of natural or
manmade disasters.
Final Thoughts
Although the security environment has not changed significantly since the last NSDC,
and the Portuguese commitments, both domestic and international, remain essentially
the same, the public deficit, which is structural, not cyclical, is forcing the Military to
balance the expense ratios between personnel, operation and investment. For that
purpose, and in order to maintain a strong operational capability, there is a deep and
thorough reform on the way.
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The challenge in hands, we all face, is how to increase efficiency without breaking the
Armed Forces apart and making them irrelevant or not functional. The line between
efficiency and disassembling is tenuous. To prevent this, it is necessary to preserve
certain basic principles, such as the individuality of the Navy, the Army and the Air
Force. The path is to concentrate, reduce, and organize while preserving the “genetic”
differences of the Service Branches. The goal is to grasp their uniqueness’s and
organize, train and equip them, from the beginning, so they become a true joint
combat force.
While the Reform «Defense 2020» moves forward, the Portuguese Armed Forces,
aware of their inalienable duties, will continue to recruit the best Men and Women for
the Service, provide them with the best education and training, so when necessary
they will be able to live up to the expectations of the Portuguese people.
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Bibliography
Chief of General Staff Portuguese Armed Forces, 2013. Military Strategic Concept
Review Guidelines: Lisbon
Presidency of the Council of Ministers, 2013. Defense 2020, Lisbon: Official Journal of
the Portuguese Republic
Presidency of the Council of Ministers, 2013. National Strategic Defense Concept,
Lisbon: Official Journal of the Portuguese Republic
Presidency of the Council of Ministers, 2003. National Strategic Defense Concept,
Lisbon: Official Journal of the Portuguese Republic
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