Defense gained prominence in this edition of AED Days. How do you view this issue?
There are positive aspects that have to do, in our particular case in Portugal, with a willingness to increase the investment in the defense and security sector. Therefore, this is an area and domain that gains prominence. We talk about consolidating a two percent investment in the defense sector, and this becomes a priority within priorities. This is noticeable. From a tool and institutional perspective, this is a policy that has been developed in this direction, with this objective. Now we are in the final stages of the military programming law, which has a medium/long-term investment program that defines the investments for the next four years and heavily focuses on reinforcing the capabilities of this sector in general, particularly in areas such as cybersecurity and aeronautics.
Wich areas will be favored by this reinforcement?
There are several areas covered by this investment plan, including all sectors of activity and all clusters of the defense sector in general. It is worth highlighting the reinforcement of the training, which is a priority. This priority involves investing in research and development and innovation. There is a significant portion of the investment oriented towards this domain. Not forgetting, of course, the effort to restore the most affected and needy capabilities. This is a need that cuts across all three branches of the armed forces – the Air Force, the Army, and the Navy.
Is the issue of human resources even more critical in the defense sector?
We do indeed have a problem of retaining value, on one hand, and on the other hand, of adequate training.
And also requalification?
Yes! Because this is a sector that relies heavily on qualified labor. And, therefore, this is a need that is not just ours. And of course, in a country like ours, small, this need is felt more intensely. IDD has been involved in some of these processes. We announced at AED Days the OGMA Academy, which will start its training process at the end of this year. We also have the academy of Arsenal do Alfeite, which is already operational, with the first training program – still experimental, but it is effectively investing in requalification and deepening in these areas. This is a fundamental and important first step.
However, it has been mentioned that retaining people is still complicated. Much because of the good training, as they become very attractive in the job market.
It is indeed a problem that must be taken seriously. And it is necessary to be aware that we need to retain the value that exists in addition to training new values. It is necessary to develop a policy to retain this value. And this is a problem that cuts across the entire economy, all sectors of economic activity, public and private. It is a problem that must be addressed in parallel with others. We need to develop actions to respond to and meet these needs.
We are going through two transformative moments. On one hand, we have the war, and on the other hand, we have Artificial Intelligence (AI), which suddenly is at the center of our concerns. What is planned regarding the integration of these AI systems, particularly Large Language Models, in the defense sector?
It is a concern. It is true that there is still much to do in this domain. AI and its potential to increase our capabilities is on the spotlight. It becomes necessary to develop a policy of reconciliation between our needs and the contribution of new mechanisms and new forms of action and digitalization. It will not be a problem; it will be a complement and should be seen as such. And this is something that is being done in parallel with the investment policy planned for the coming years.
Will this effect of the war in Ukraine continue to influence the definition of the public policies and research?
I believe so. Regardless of it being for a bad reason, this war between Ukraine and Russia has drawn the attention to the need to accelerate and go through stages, allowing us to reach the necessary development and progress to meet our present needs and economic growth. Because this is a real need. All the investment in this domain represents the fulfillment of an essential necessity that belongs to all. Whether we are close or distant from conflicts, we end up being involved through the international organizations we are part of, such as NATO and the European Union. It is also a way of looking at the defense sector not just as an expense, but as an investment. What we call in public finance a reproductive expenditure.
An expense that will bear fruit?
Exactly. That will have a positive impact in the future. And this is a different way of looking at defense, different from the way it has been seen traditionally. These types of events and initiatives allow for forums for more open and sensitive discussions. To show that this is an investment and business opportunity that allows us to grow and enhance our economy and GDP. In a way that is not new but reinforced. And it must reach all citizens, conveying the idea that we are creating jobs, contributing to GDP growth, education, exporting labor and products, achieving a real and effective participation in value chains.
Within defense, is there any sector in which Portugal, as a country, stands out?
We are beginning to emerge with products and active participation in the value-added chain. Aeronautics is one of them. The KC-390 was a pioneering and innovative project in this sector, confirming that we have the capacity at the national level to also participate. But we cannot yet do it alone. And this is an important sector in which we can have a very important response capacity. I cannot exclude the naval sector, which is a sector that is strongly reinforcing its capabilities. We have a naval shipyard in Portugal, we build ships in Portugal, we have this production capacity, we have the technology to equip these ships. We have the mold industry, which is essential for the design and execution of projects, we have digital monitoring and training capacity to ensure their operation and action in the field. Therefore, this is a domain in which we have several projects emerging, such as the ocean patrol ships involving the construction of six ships that could be made in Portugal. The tendering procedure has been launched, but obviously, our aim, like that of other countries, is for them to be built here, in Portugal. It would be a strong contribution to the national industry, and that is the only way we can grow. From my participation in events at the international level, I have become aware that for our companies, our industry, to conquer other markets and go beyond borders, to show their product and their value, they must show that at the national level they play an important role and are recognized by the entities with the competence to do so. Because if I am selling drones, they ask me, “Who buys drones from you?” If the Portuguese armed forces buy us drones, it is a quality assurance. The same thing happens in all countries and in all domains of the defense sector.