Right below us!!!

ATC: CS-AZG Lisboa MIL you have a contact in your direction at your 10 o'clock at 2500 feet less than 2 miles.

Me: Copy traffic information, loocking for traffic and we will maintain 2000 feet.

ATC: C-ZG copy 2000 feet

(later on)

ATC: CS-AZG Lisboa

ME: CS-AZG Go Ahead

ATC: C-ZG Traffic is at you 9 o'clock less than a mile in you direction, 2500 feet, do you have traffic in sight?

ME: Negative C-ZG

FInstructor: Where the hell is he?

ME: Passing right below us now!

FInstructor: S**t!

FInstructor: Lisboa MIL CS-AZG

ATC: ZG Go

FInstructor: Confirm traffic at 2500 feet?

ATC: Affirm!

FInstructor: Copy!

Now! with two altimeters on board, both set with Lisbon QNH 1015, and both showing 2000 feet, also with transponder set to mode C, how can this happend?

Simple as that, the other aircraft wasn't flying with mode C on the transponder, using only mode A, without altitude info on the radar, and with a 7000 code, general code for VFR flights, but despite all of that I think that in this type of airspace, G class, we pilots have to be more responsable when in flight.

I'm not an experienced pilot and I'm very far away of beeing a safety authority, but one thing is for sure; I sincerely don't feel to much comfortable sharing the sky with someone who doesn't pay the required attention to the job.