BRUSSELS / EuroWire / – The European Union has sanctioned a €115 million initiative aimed at boosting innovation in the defence sector across member states. The Programme for Agile and Rapid Defence Innovation, known as AGILE, will facilitate support for small and medium-sized enterprises, including start-ups and scale-ups. The Council of the European Union formally endorsed the regulation on October 12 after the completion of the final legislative procedures. This programme aims to expedite the transition of emerging and disruptive technologies from the development phase directly into practical applications within defence systems.
Funding through AGILE will be allocated to both the development and testing of innovative defence-related products, which include civilian technologies adapted for military use. The initiative aims to distribute grants within four months from the submission of applications, with EU officials anticipating that technologies supported under this scheme will be operational within one to three years. Grant sizes will vary from €1 million to €5 million, providing smaller companies with direct financial support for projects aligned with programme criteria.
European Commission officials project that during its initial phase, AGILE will support approximately 20 to 30 projects. The projects selected could potentially receive funding covering up to 100% of eligible expenses. In addition, participating companies are permitted to claim costs incurred up to three months prior to the closing date of a call for proposals. The work programme will focus on mission-oriented product development and market delivery activities, facilitating the movement of defence solutions toward operational deployment and integration into procurement channels.
Rapid funding routes aim to assist smaller defence firms
Companies supported by AGILE will benefit from expedited access to testing and experimentation facilities across Europe, and the framework will also enable matchmaking opportunities between smaller innovative firms and major defence manufacturers. Member states will be involved in defining the programme’s challenges, ensuring that the funded work aligns with identified capability needs. The rules governing the initiative include simplified procurement procedures for the products supported, establishing an additional pathway for successful projects to transition from testing phases into defence supply chains and operational applications across participating European markets.
The first call for proposals is anticipated at the start of 2027, coinciding with the programme’s operational launch. Participation will be open to eligible companies from EU member states and associated countries, with Ukraine and nations within the European Economic Area and European Free Trade Association also eligible. The scheme allows individual companies to apply independently, although consortium participation remains available under the funding framework for suitable projects.
Implementation expected to begin in early 2027
Following a political agreement reached in July, the European Parliament approved the final text during a plenary vote on October 6. The European Commission initially introduced AGILE in March 2026 as a dedicated mechanism to accelerate defence technology development. With formal approval now obtained, the remaining legal steps are underway before the programme becomes fully operational. The regulation must be signed by the Presidents of the Parliament and the Council before it is published in the EU Official Journal, after which it will enter into force 20 days later.
AGILE is designed to complement existing European initiatives that support defence research, industrial growth, and technological adoption. Its €115 million budget is allocated within the current EU financial framework, with particular focus on supporting smaller and newer defence suppliers. The funding approach involves swift grant decisions, access to testing facilities, and pathways into procurement for selected projects. The overarching goal is to shorten the timeline between promising technological innovations, operational testing, and their deployment within European defence procurement, ensuring quicker integration into operational use across participating nations.