BRUSSELS / EuroWire / – The European Union has announced a €115 million initiative aimed at fostering innovation in defence technology across member states. Named the AGILE, this programme intends to support small and medium-sized enterprises, including start-ups and scale-ups. The European Council officially approved the regulation on October 12, following the completion of legislative procedures by lawmakers. Its focus is on emerging and disruptive technologies, enabling quicker transition from development to operational defence applications.
Funding will be allocated for the creation and testing of pioneering defence solutions, including civilian technologies repurposed for military use. The programme aims to issue grants within four months after applications are received. EU officials anticipate that the supported innovations could reach defence units within one to three years. Grant amounts will vary between €1 million and €5 million, directly assisting smaller firms with projects aligned with programme goals.
According to the European Commission, AGILE is expected to support approximately 20 to 30 projects during its initial phase. Selected initiatives may be awarded funding covering up to 100% of eligible expenses. Furthermore, companies are permitted to claim eligible costs incurred up to three months prior to the closing date of a call. The work plan will include the development of mission-critical products and their introduction into markets, facilitating the progression of defence solutions toward operational deployment and procurement channels.
Rapid funding aims to benefit smaller defence companies
Participating firms supported by AGILE will experience expedited access to testing and experimentation infrastructure across Europe. The framework also facilitates matchmaking between smaller innovators and major defence contractors. Member states will contribute to defining programme challenges, ensuring the funded projects address real capability gaps. Simplified procurement procedures are part of the rules, creating additional pathways for successful projects to transition from testing phases into defence supply chains and operational environments across participating nations.
The first call for proposals is projected to occur at the start of 2027, coinciding with the programme’s operational launch. Eligible participants will include companies from EU member states and associated countries, with Ukraine and nations within the European Economic Area and European Free Trade Association also eligible. Single companies can apply independently, while consortia may also submit joint proposals under the existing funding framework.
Implementation scheduled for early 2027
The European Parliament gave its approval to the final text during a plenary vote on October 6, following a political agreement reached in July. The EU initially introduced AGILE in March 2026 as a specialized mechanism to speed up defence technology development. The formal approval now paves the way for the remaining legal procedures to be completed prior to launch. After signatures from the Presidents of the Parliament and the Council, the regulation will be published in the EU Official Journal and will become effective 20 days afterward.
AGILE complements existing European initiatives that promote defence research, industrial growth, and technology adoption. Its €115 million budget aligns with current EU financial plans, emphasizing support for smaller and newer defence suppliers. The funding approach combines swift grant decisions, testing opportunities, and pathways into procurement for selected projects. The goal is to reduce the time lag between promising technological innovations, operational testing, and deployment by European defence agencies across participating countries.