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Exclusive Report: Portugal unveils expansive modernization plan for its Army to reinforce key land combat capabilities by 2034.
On May 2025, Portugal officially expanded on its long-term ambition to comprehensively modernize the Exército Português (Portuguese Army), to strengthen core operational domains including medium-weight maneuver forces, command and control systems, survivability, and digital connectivity. Rooted in the Military Programming Law 2023-2034, approved in July 2023, this transformation marks a strategic shift in Portugal’s defense policy, underscoring its intent to align more closely with European standards and NATO interoperability goals. Despite historically limited resources and modest troop levels, Portugal is now committing EUR 1.236 billion to Army modernization under a broader EUR 5.57 billion military budget, with possibilities of acceleration through EU instruments such as the ReArm Europe plan. This effort is timely and relevant amid growing security concerns across the European continent and reflects Portugal's determination to address capability gaps with a pragmatic and focused investment strategy.
The Portuguese Army's prioritization of mobility, protection, and C2 reveals an operational concept focused on resilient, flexible, and fast-reacting land forces, capable of participating in high-intensity missions abroad and responding to national emergencies (Picture Source: Portuguese MoD)
Portugal's military modernization strategy is centered on enhancing its medium ground forces, with a clear emphasis on mobility, firepower, protection, and logistical resilience. A total of EUR 405 million has been allocated to improve these capabilities, including a substantial EUR 297.7 million mid-life upgrade for the Pandur II 8×8 fleet and the EUR 13.6 million launch of the VCI-L tracked infantry fighting vehicle programme. These efforts mark a shift toward versatile, modular ground units designed for rapid deployment and multinational interoperability. In parallel, the Portuguese Army is acquiring additional VAMTAC ST5 light armored tactical vehicles and self-propelled mortars, further boosting tactical mobility and firepower. The Pandur II fleet is being equipped with remote weapon stations, modern battlefield management systems, and enhanced communication capabilities, reinforcing its role in networked operations. Upgrades also extend to the heavy vehicle segment, where Leopard 2A6 main battle tanks are being fitted with fire extinguishing systems, auxiliary power units, and digital stabilization.
Portugal is advancing a broad modernization of its land forces with a focus on command, control, firepower, and air defense. EUR 119 million is being invested to upgrade the SIC-T command architecture, tactical radios, and integrate EyeCommand software across platforms. The artillery and air defense domains are seeing renewed emphasis, notably through a EUR 270 million contract for 36 CAESAR MkII 155 mm self-propelled howitzers and the introduction of Thales’ ForceShield Compact VSHORAD system to replace the legacy Chaparral launchers. The VSHORAD package, worth EUR 39 million, includes RAPIDRanger mobile launchers with STARStreak and Martlet missiles, Thales GM200 radar, and the ControlView C2 system, enhancing short-range aerial threat response. Portugal has also joined the European Sky Shield Initiative (ESSI) to acquire a medium-range air defense system, while the SICCA3 C2 system ensures full integration and interoperability across new and legacy GBAD assets. Complementary upgrades include EUR 55.4 million for Leopard 2A6 tanks, EUR 6 million for micro- and mini-UAVs, and EUR 8.2 million for counter-UAS technologies.
In parallel, the Army is enhancing special operations and dismounted capabilities under the Plan for the Implementation of the Special Operations Force (PIFOE) and a EUR 42 million Dismounted Soldier Systems program. Firepower has been expanded with new individual and crew-served weapons such as HK416A5 and HK417A2 rifles, M107A1 and AXMC precision rifles, SCAR-L/H platforms, grenade launchers, ATGMs, and recoilless rifles. Tactical mobility is supported by all-terrain vehicles like the Sportsman MV850 and MRZR series, while situational awareness is improved through target acquisition devices, secure tactical radios, Android-based ATAK systems, and battlefield management tools. Survivability has been strengthened with ballistic gear, night vision, tactical simulators, and locally-supplied counter-UAS systems. These integrated measures collectively enhance the Portuguese Army’s multidomain readiness and operational flexibility.
Based on a detailed analysis of the available data and the provenance of the systems and equipment involved, it is estimated that approximately 70% of Portugal’s current land forces modernization budget is allocated to defense products manufactured within Europe. This reflects a strong alignment with European industrial capabilities and procurement frameworks, reinforcing Portugal’s commitment to strategic autonomy and interoperability within the EU and NATO defense ecosystems.
Portugal’s modernization strategy shows marked similarities to other mid-sized European forces such as Denmark or the Czech Republic, who are also investing in medium-weight rapid deployment capabilities, unmanned systems, and digitized C4ISTAR architectures. However, Portugal’s plan is uniquely constrained by its budget trajectory and its reliance on EU joint procurement and NATO support mechanisms like the NSPA (NATO Support and Procurement Agency) and EDIRPA (European Defence Industry Reinforcement through common Procurement Act).
The EUR 1.236 billion specifically earmarked for Army modernization covers 12 capability areas across 99 individual projects, with clear focus on medium-weight maneuver units, situational awareness, and network-centric warfare components. The Army's prioritization of mobility, protection, and C2 reveals an operational concept focused on resilient, flexible, and fast-reacting land forces, capable of participating in high-intensity missions abroad and responding to national emergencies.
Through this strategic modernization plan, Portugal signals a clear direction: to transform its land forces into a network-enabled, modular, and expeditionary-capable force fit for the future battlespace. Balancing ambition with budgetary realism, and leveraging European defense integration frameworks, Portugal is not only closing existing capability gaps but positioning itself to act as a reliable contributor to NATO and EU defense postures. In doing so, Lisbon underscores its intent to reinforce the credibility, interoperability, and strategic autonomy of its armed forces by 2034.