By Sergio Goncalves

    LISBON, Feb 23 (Reuters) – The U.S. ambassador to Portugal has urged Lisbon to replace its ageing F-16 fighter jets with Lockheed Martin’s ‌F-35, saying the stealth jet would ensure interoperability with Europe’s top-tier air ‌forces.

    Ambassador John Arrigo told CNN Portugal late on Sunday that he aimed to draw on his business ​experience to help Portugal ramp up defence spending to NATO’s target of 5% of gross domestic product by 2035 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.

    Portuguese Defence Minister Nuno Melo said in November that the selection process for the replacement fighters had not yet started.

    Arrigo said more ⁠than 900 of the F-35s were in service or on order across Europe and that for “interoperability, the F-35 is definitely the way to go,” noting also that 25% of the ​plane was ​made with European parts.

    On relations with China, ​the ambassador said the Trump administration ‌was not pushing Portugal to choose between Washington and Beijing or decouple from China, The U.S. was promoting “de-risking”, he said, ensuring cybersecurity and investment screening.

    Chinese companies expanded in Portugal following the 2011-14 bailout, when lower asset prices attracted foreign investors.

    Portugal secured a 78 billion euro bailout in May 2011 from the EU, IMF and ECB after ‌soaring borrowing costs during the eurozone debt crisis ​cut it off from markets, but had to agree ​to harsh austerity that sparked ​a deep recession.

    China Three Gorges holds 21.4% of 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 said the U.S. sees itself as Portugal’s “best partner but wants to keep any ​adversary… at arm’s length.”

    Portugal joined ‌China’s Belt and Road Initiative in December 2018. Arrigo said Lisbon’s partnership ​with the U.S. would “flourish” if Lisbon exited, as Italy did in 2023.

    (Reporting ​by Sergio Goncalves; Editing by Kate Mayberry)

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