Lisbon has been urged by the U.S. ambassador to Portugal to replace its aging fleet of F-16 fighter jets with Lockheed Martin’s F-35, citing interoperability with leading European air forces. Ambassador John Arrigo also discussed increasing Portugal’s defense spending and navigating relations with China.
F-35 Fighter Jet Recommendation
Ambassador John Arrigo told CNN Portugal late Sunday that he intends to leverage his business background to assist Portugal in increasing its defense expenditure to 5% of its gross domestic product by 2035, up from the current 2%.
“F-35 is the best fighter – it’s a fifth-generation stealth fighter, it’ll get them (the Portuguese Air Force) into the Champions League when it comes to the EU,” Arrigo said.
Portugal’s Defence Minister Nuno Melo stated in November that the process for selecting replacement fighters had not yet begun.
Arrigo noted that over 900 F-35s are currently in service or on order throughout Europe, and emphasized that 25% of the aircraft’s components are of European origin, stating that “for interoperability, the F-35 is definitely the way to go.”
U.S.-China Relations and Portugal
Regarding relations with China, Arrigo stated that the Trump administration did not pressure Portugal to sever ties with Beijing or decouple from the Chinese economy. He explained that the U.S. is focused on “de-risking,” which involves ensuring cybersecurity and investment screening.
Chinese companies have expanded their presence in Portugal following the 2011-14 bailout period, when lower asset prices attracted foreign investment.
Portugal received a 78 billion euro bailout from the EU, IMF, and ECB in May 2011, but was required to implement strict austerity measures that led to a significant recession.
Currently, China Three Gorges holds a 21.4% stake in utility EDP, China State Grid owns 25% of grid operator REN, and Hong Kong-listed Fosun controls 20% of bank Millennium BCP and 85% of insurer Fidelidade.
Arrigo affirmed that the U.S. views Portugal as a “best partner” but seeks to maintain distance from any potential adversaries.
He added that a partnership between Lisbon and the U.S. would “flourish” if Portugal were to withdraw from China’s Belt and Road Initiative, as Italy did in 2023.
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