BRUSSELS / EuroWire / – European Union has sanctioned a funding initiative worth €115 million aimed at accelerating advancements in defence technology. Known as the Programme for Agile and Rapid Defence Innovation, or AGILE, concentrates on supporting smaller firms developing disruptive and emerging technologies. The European Union Council finalized the formal approval process on October 12. This initiative provides startups, scale-ups, and other qualified companies with a dedicated pathway to fund defence-related products through shorter development cycles and streamlined funding procedures.
The AGILE scheme will fund both innovative military solutions and civilian products that can be adapted for defence purposes. The programme aims to deliver grant decisions within four months of the application process starting. Technologies supported are expected to reach defence users within one to three years. Grants will range from €1 million to €5 million, with rules permitting projects to receive up to 100% support for their eligible costs.
The European Commission anticipates initial funding for approximately 20 to 30 projects during the programme’s first phase. Eligible participants can claim certain expenses incurred up to three months before the closing date of a funding call. This provision enables ongoing development work during the application window. AGILE will finance mission-oriented technology development and activities that facilitate the deployment of finished products to defence markets. Additionally, the programme fosters quicker collaboration between innovative suppliers, testing facilities, and established defence industry players.
AGILE broadens access to defence testing and procurement channels
Participants chosen through AGILE will benefit from enhanced access to testing and experimentation infrastructure across various European nations. The scheme also promotes connections between small-scale technology developers and major defence contractors. Member states will help shape the programme’s challenges based on specific defence capability needs. Furthermore, AGILE introduces simplified procurement procedures for products developed under its framework. These rules offer an alternative route for funded technologies to transition from testing phases into defence supply chains and operational deployment.
Eligible entities from EU member states and associated countries can participate. Ukraine is included, along with eligible nations within the European Economic Area and European Free Trade Association. Companies may apply individually where allowed by programme rules, with consortium applications also remaining an option. The first call for proposals is anticipated in early 2027. The programme is expected to be operational once the remaining legal and publication steps are completed.
Legal finalization set to precede 2027 funding launch
The European Parliament approved the legislation on October 6 following a political agreement reached in July. The EU institutions initially introduced the AGILE proposal in March 2026. With formal adoption now secured, the regulation must be signed and published before becoming effective. The signatures of the Parliament and Council presidents are required, followed by publication in the EU Official Journal. The regulation will come into force 20 days after publication.
AGILE will operate alongside existing European defence research and industry initiatives. Its €115 million budget will primarily target smaller suppliers and tech firms seeking quicker access to defence funding. The programme combines grants, testing opportunities, and procurement pathways under a unified funding framework. Authorities designed the process to enable shorter award timelines and faster progression from development to operational deployment. The initial funding round in 2027 will mark the start of active implementation across participating European markets.