BRUSSELS / EuroWire / – A new €115 million initiative aimed at boosting defence innovation across the European Union has been approved. The programme, called AGILE, aims to support small and medium enterprises, including start-ups and scale-ups, in advancing defence technology. On October 12, the Council of the European Union officially approved the regulation after legislative procedures were finalized. The focus of the programme is on disruptive and emerging technologies that can be transitioned swiftly from development to operational defence deployment.
Funding from AGILE will facilitate the development and testing of innovative defence solutions, such as civilian technologies adapted for military purposes. It aims to allocate grants within four months of application submission. EU officials project that technologies supported through the programme could be delivered to defence forces within one to three years. Grant amounts will vary from €1 million up to €5 million, providing smaller firms with direct financial support for qualifying projects.
European Commission anticipates AGILE will finance approximately 20 to 30 projects during its initial phase. Projects selected could be eligible to receive up to 100% of their costs. Companies are also able to claim expenses incurred up to three months before the application deadline. The programme’s work plan will encompass product development aligned with operational missions and market delivery activities, aiming to bring defence innovations closer to operational users and procurement channels.
Faster funding aims to assist smaller defence companies
Participating firms under AGILE will benefit from quicker access to testing and experimentation facilities across Europe. The scheme also facilitates matchmaking between smaller innovators and larger defence manufacturers. Member states will assist in defining programme challenges, ensuring funded projects address specific capability needs. Additionally, simplified procurement rules are included for supported products, providing an alternative pathway for projects to transition from testing phases into defence supply chains and operational deployment within European markets.
The initial call for proposals is scheduled for early 2027, coinciding with the programme’s operational launch. Eligible participants will include companies from EU member states and associated countries. Ukraine, along with nations in the European Economic Area and the European Free Trade Association, can also participate. The framework permits individual companies to submit applications, and consortium participation remains an option for eligible projects under the funding scheme.
Early 2027 marks the planned rollout of AGILE
Following a political agreement reached in July, the European Parliament ratified the programme’s text in a plenary vote on October 6. First introduced in March 2026 as a dedicated instrument to accelerate defence technology development, AGILE’s formal approval now paves the way for its legal implementation. Once signed by the Presidents of the Parliament and Council, the regulation will be published in the EU Official Journal and become effective 20 days later.
AGILE is designed to complement existing EU initiatives that support defence research, industrial growth, and technology adoption. Its €115 million budget fits within the current EU financial framework, with an emphasis on supporting smaller and newer defence providers. The funding approach involves rapid grant decisions, testing access, and pathways into procurement for selected projects. The goal is to reduce the timeline from innovative technology development to operational deployment by European defence entities across participating nations.