BRUSSELS / EuroWire / – European Union has approved a €115 million funding scheme aimed at boosting defence innovation across member states. The initiative, known as AGILE, is designed to aid small and medium-sized enterprises, including start-ups and scale-ups. Following the European Council’s formal approval on October 12, after completing the legislative process, the programme aims to fast-track the transition of innovative and disruptive technologies from development stages into operational defence applications.
Funding through AGILE will support the creation and testing of advanced defence solutions, including civilian technologies adapted for military use. The plan stipulates a four-month period for grant award decisions after applications are submitted. EU officials anticipate that technologies supported by the programme will be deployed to defence forces within a timeframe of one to three years. Grant amounts will vary from €1 million to €5 million, providing smaller companies with direct access to financial support for qualifying projects.
European Commission expects AGILE to back approximately 20 to 30 projects during its initial phase. Selected initiatives may receive funding covering up to 100% of eligible costs. Companies will also be able to claim expenses incurred up to three months prior to the application deadline. The work programme emphasizes mission-driven product development and market entry activities, facilitating the movement of defence solutions toward operational deployment and procurement channels.
Streamlined grants aim to support smaller defence firms
Beneficiaries of AGILE will benefit from expedited access to testing and experimentation facilities across Europe. The framework additionally facilitates matchmaking between smaller innovators and major defence manufacturers. Member states will contribute to shaping the programme challenges, ensuring that supported projects address actual capability requirements. Moreover, the rules incorporate simplified procurement procedures for funded products, creating additional pathways for successful projects to integrate into defence supply chains and operational systems across participating European markets.
The first call for proposals is anticipated to be launched early in 2027, coinciding with the programme’s operational start. Eligible participants include companies from EU member states and associated countries. Ukraine, along with nations in the European Economic Area and European Free Trade Association, are also eligible to participate. While individual companies can apply directly, consortium participation remains an option within the funding framework for eligible projects.
Implementation set for early 2027
Following approval by the European Parliament in a plenary vote on October 6, after negotiations reached a political agreement in July, AGILE’s formal adoption now advances through the final legal steps. The European Parliament and Council Presidents must sign the regulation before it is published in the EU Official Journal, after which it will officially come into force 20 days later. The initiative was first introduced by EU officials in March 2026 as a dedicated tool to accelerate defence technology development. Its approval signifies the completion of the remaining legal procedures necessary for launch.
AGILE will supplement existing European programmes that support defence research, industrial development, and technology adoption. With a €115 million budget within the current EU financial framework, the initiative emphasizes support for smaller and emerging defence suppliers. Its funding approach combines swift grant decisions, testing access, and pathways into procurement for selected projects. The goal is to reduce the time lag between promising technological advances, operational testing, and deployment across European defence markets involved in the programme.