BRUSSELS / EuroWire / – The European Union has authorized a €115 million funding scheme aimed at fast-tracking the development of defence technologies. The Programme for Agile and Rapid Defence Innovation, known as AGILE, prioritizes small enterprises working on emerging and potentially disruptive technological solutions. The European Union Council completed the official approval process on October 12. This initiative provides start-ups, scale-ups, and other qualifying firms with a dedicated funding pathway to support the development of defence products through shorter cycles for both development and funding.
Support from AGILE will extend to both cutting-edge military technologies and civilian innovations that can be adapted for defence applications. The programme aims to process grant applications and issue awards within four months of the application submission. Technologies supported are expected to be ready for defence use within one to three years. Grants will typically range from €1 million to €5 million, with funding rules allowing selected projects to receive support covering up to 100% of their eligible costs.
The European Commission anticipates that the programme will fund approximately 20 to 30 projects during its initial phase. Eligible companies are permitted to claim certain expenses related to their projects incurred up to three months before the closing date of a funding call. This provision ensures development activities can continue seamlessly during the application process. AGILE will fund technology development focused on specific missions and activities that facilitate the transition of completed products into defence procurement channels. Additionally, the programme fosters quicker collaboration between innovative suppliers, testing facilities, and established defence firms.
AGILE broadens opportunities for defence testing and procurement
Participants chosen through AGILE will gain enhanced access to testing and experimentation infrastructure across participating European nations. The framework also promotes connections between smaller tech developers and major defence manufacturers. EU member states will play a role in defining programme challenges based on their identified defence capability needs. The initiative also introduces streamlined procurement procedures for products developed under the scheme, providing an additional route for funded technologies to enter defence supply chains and operational environments.
Eligible participants will include companies from EU member states and associated countries, with Ukraine also eligible to participate. Countries within the European Economic Area and European Free Trade Association can join as well. Companies may apply individually if the rules allow, and consortium applications will also be accepted. The first call for proposals is expected to open in early 2027. AGILE is set to become fully operational once the regulation completes the final legal and publication procedures.
Legal finalization paves the way for 2027 funding launch
The European Parliament approved the legislation on October 6 after a political agreement was reached in July. The proposal for AGILE was initially presented by EU institutions in March 2026. Now, formal adoption awaits signatures and publication, which will enable the regulation to take effect. The signatures of the Presidents of the Parliament and the Council are required, followed by publication in the EU Official Journal. The regulation will become enforceable 20 days after publication.
AGILE will operate in conjunction with existing European defence research and industrial initiatives. Its €115 million budget will primarily target smaller suppliers and innovative technology companies seeking quicker access to defence funding. The programme integrates grants, testing opportunities, and procurement channels into a unified funding approach. Designed with shorter award timelines and faster transition from development to operational deployment, the initiative’s first funding round in 2027 will mark its active deployment across participating European markets.