BRUSSELS / EuroWire / – The European Union has launched a €115 million initiative aimed at accelerating innovation in defence technology across member states. Known as the AGILE programme, it will support small and medium-sized enterprises, including start-ups and scale-ups, in advancing defence solutions. The Council of the European Union formally approved the regulation on October 12, following the completion of legislative procedures by lawmakers. The initiative emphasizes emerging and disruptive technologies with the potential to transition rapidly from development phases into practical defence applications.
Funding will be allocated by AGILE for the creation and testing of innovative defence technologies, which include civilian innovations adapted for military use. The programme aims to award grants within four months of application submission. EU officials anticipate that supported technologies will reach defence forces within a timeframe of one to three years. Grant amounts will range from €1 million to €5 million, providing smaller firms direct funding access for projects aligned with the programme’s criteria.
The European Commission projects that AGILE will back around 20 to 30 initiatives during its initial phase. Selected projects could receive funding covering up to 100% of eligible costs. Additionally, companies will be permitted to claim qualifying expenses incurred up to three months before the closing date of the call. The work programme will facilitate the development of mission-oriented products and their market delivery, aiming to streamline the transition of defence solutions from testing phases to operational deployment through established procurement channels.
Accelerated grants to support small defence companies
Participating firms funded through AGILE will benefit from quicker access to testing and experimentation facilities across Europe. The framework also enables matchmaking opportunities between smaller innovators and leading defence manufacturers. Member states will assist in defining programme challenges, ensuring funded projects address actual capability needs. Simplified procurement rules are included for supported products, offering an additional pathway for successful projects to integrate into defence supply chains and operational use within participating European markets.
The first call for proposals is anticipated early in 2027, aligning with the programme’s operational start. Eligible applicants will include companies from EU member states and associated countries. Ukraine and nations within the European Economic Area and European Free Trade Association are also eligible to participate. The initiative allows for individual company applications, as well as consortium-based submissions under the funding framework for qualifying projects.
Expected launch early next year
Following a political agreement reached in July, the European Parliament approved the final text in a plenary vote on October 6. The European Commission initially introduced AGILE in March 2026 as a dedicated mechanism to speed up defence technology development. The formal approval now enables the remaining legal steps for implementation. Before coming into force, the regulation must be signed by the Presidents of the Parliament and the Council and then published in the EU Official Journal, with entry into force scheduled 20 days afterward.
AGILE is designed to complement existing European programmes that focus on defence research, industrial growth, and technology adoption. Its €115 million budget is embedded within the current EU financial framework, with a particular emphasis on supporting smaller and newer defence suppliers. The funding approach combines swift grant allocations, access to testing facilities, and pathways into procurement for selected initiatives. The goal is to reduce the timeline from innovative technology development to operational testing and deployment by European defence customers across participating countries.