BRUSSELS / EuroWire / – The European Union has approved a €115 million funding scheme aimed at boosting defence innovation throughout its member states. The initiative, named the AGILE, is designed to foster small and medium-sized enterprises, including startups and scale-ups, in the defence sector. The Council of the European Union formally approved the regulation on October 12, following the completion of the final legislative procedures by lawmakers. This programme focuses on emerging and disruptive technologies, aiming to facilitate their transition from development to practical defence applications more rapidly.
Funding from AGILE will support the development and testing of innovative defence technologies, including civilian innovations adapted for military needs. The programme aims to award grants within four months after applications are submitted. EU officials anticipate that supported technologies will reach defence forces within one to three years. Grant amounts will range from €1 million to €5 million, providing smaller firms direct funding opportunities for qualifying projects.
The European Commission expects AGILE to fund approximately 20 to 30 projects during its initial phase. Selected initiatives could receive funding covering up to 100% of eligible costs. Companies can also claim expenses incurred up to three months before the closing date of a call. The work programme encompasses mission-driven product development and market activities that help bring defence solutions closer to operational customers and procurement channels.
Rapid funding supports smaller defence companies in testing and collaboration
Participating companies supported by AGILE will gain quicker access to testing and experimentation facilities across Europe. The framework also promotes matchmaking between smaller innovators and larger defence manufacturers. EU member states will assist in defining programme challenges to ensure that funded work aligns with identified capability needs. Simplified procurement rules are also included for supported products, creating additional pathways for successful projects to integrate into defence supply chains and be used operationally across participating European markets.
The initial call for proposals is anticipated to be launched at the start of 2027, coinciding with the programme’s operational start. Eligible participants will include companies from EU member states and associated countries. Ukraine, along with nations in the European Economic Area and European Free Trade Association, will also be eligible to participate. While individual companies can apply independently, consortium participation remains an option under the funding framework for eligible projects.
Implementation set for early 2027 after EU approval
The European Parliament gave its approval to the final text in a plenary vote on October 6, following a political agreement reached in July. EU officials first introduced AGILE in March 2026 as a dedicated mechanism for accelerating defence technology development. The formal adoption now clears the remaining legal steps before the programme can be launched. The Presidents of the Parliament and the Council must sign the regulation before it is published in the EU Official Journal, after which it will enter into force 20 days later.
AGILE will complement existing European programmes aimed at supporting defence research, industrial growth, and technology adoption. Its €115 million budget is part of the current EU financial framework and emphasizes support for smaller and newer defence suppliers. The funding approach combines rapid grant decision-making, testing access, and pathways into procurement for selected projects. The initiative seeks to shorten the timeline from promising technology development to operational testing and deployment by European defence customers across participating countries.