BRUSSELS / EuroWire / – The European Union has approved a €115 million initiative aimed at boosting defence innovation across its member states. Known as the AGILE programme, it is designed to support small and medium-sized enterprises, including start-ups and scale-ups, in advancing defence technologies. The regulation received official approval from the Council of the European Union on October 12, following the completion of legislative procedures by lawmakers. The initiative emphasizes emerging and disruptive innovations that can transition swiftly from research and development to operational defence applications.
AGILE will fund the development and testing phases of innovative defence solutions, which include civilian technologies tailored for military use. The programme aims to award grants within four months of the application process. EU officials project that the supported technologies will be ready for deployment within one to three years. Funding amounts will range from €1 million to €5 million, granting smaller firms direct financial support for projects aligned with the programme’s criteria.
The European Commission anticipates that during its initial phase, AGILE will back approximately 20 to 30 projects. Selected initiatives may receive funding covering up to 100% of eligible costs. Companies are also permitted to claim expenses incurred up to three months prior to the call’s closing date. The work plan will encompass activities focused on developing mission-critical products and bringing them to market, facilitating their progression toward operational deployment and integration into existing procurement channels.
Accelerated grants aim to support smaller defence businesses
Through AGILE, smaller defence firms will gain quicker access to testing and experimentation facilities located across Europe. The framework further facilitates matchmaking between innovative SMEs and major defence contractors. EU member states will collaborate on defining programme challenges to ensure funded projects address actual capability requirements. The rules also incorporate simplified procurement procedures for supported products, establishing an additional pathway for successful projects to enter defence supply chains and be operationally utilized within participating European markets.
The initial proposal call is expected to open in early 2027, coinciding with the programme’s official launch. Eligible participants will include companies from EU member states and associated nations. Ukraine and countries belonging to the European Economic Area and the European Free Trade Association are also eligible to participate. The programme allows individual companies to apply, with consortium participation still available for eligible projects under the funding scheme.
Implementation scheduled for early 2027
Following the agreement reached in July, the European Parliament approved the final text through a plenary vote on October 6. First introduced in March 2026 as a dedicated instrument to accelerate defence technology development, AGILE’s formal adoption now clears the last legal steps before it becomes operational. The regulation must be signed by the Presidents of the Parliament and the Council before its publication in the EU Official Journal, with it entering into force 20 days afterward.
This initiative will supplement existing European programmes that promote defence research, industry growth, and technological adoption. With a budget of €115 million, it is integrated within the current EU financial framework and mainly targets smaller and newer defence suppliers. The funding approach involves rapid grant decisions, access to testing facilities, and pathways into procurement for selected projects. The goal of AGILE is to shorten the timeline from technological innovation to operational testing and deployment by European defence users across participating nations.