BRUSSELS / EuroWire / – The European Union has sanctioned a €115 million funding scheme aimed at accelerating the advancement of defence technologies. Known as AGILE, this initiative targets smaller firms engaged in emerging and disruptive technological innovations. The formal approval by the Council of the European Union was completed on October 12. This programme provides startups, scale-ups, and other qualifying companies with a dedicated pathway to finance the development of defence-related products through faster timelines and streamlined funding processes.
AGILE aims to bolster both novel military technologies and civilian products that can be repurposed for defence applications. The programme targets a four-month timeframe for awarding grants once the application process opens. Technologies receiving support are expected to advance toward deployment with defence users within one to three years. Grant amounts will vary from €1 million to €5 million, with regulations allowing projects to receive support covering up to 100% of their eligible costs.
The European Commission projects that approximately 20 to 30 initiatives will be financed in the programme’s initial phase. Eligible entities can claim certain project expenses incurred up to three months before the closing of a funding call, enabling ongoing development work during the application period. AGILE will focus on funding technology development tailored to specific missions, as well as activities that facilitate the transition of finished products to defence procurement. Additionally, the initiative aims to foster quicker collaboration between innovative suppliers, testing facilities, and established defence contractors.
AGILE broadens access to testing facilities and procurement channels
Participating companies under AGILE will benefit from enhanced opportunities to utilize testing and experimentation infrastructure available across the participating European countries. The framework also promotes stronger connections between smaller tech developers and larger defence industry players. EU member states will help shape the programme’s challenges based on identified defence capability needs. The scheme also introduces simplified procurement procedures for products developed within its scope, providing an additional route for funded innovations to transition from testing to operational deployment within defence supply chains.
Eligible participants include companies from EU member states, associated countries, Ukraine, and other eligible nations within the European Economic Area and European Free Trade Association. While individual applications are permitted where rules allow, consortium submissions will also remain an option. The first call for proposals is anticipated in early 2027, with AGILE expected to become fully operational once the legal and publication steps are completed.
Legal finalization set to precede 2027 funding commencement
Following a political agreement reached in July, the European Parliament ratified the legislation on October 6. The proposal for AGILE was initially introduced in March 2026. With the formal adoption now completed, the next steps include signatures and official publication before the regulation takes effect. Both the Presidents of the Parliament and the Council must sign the document, after which it will be published in the EU Official Journal. The regulation will then come into force 20 days post-publication.
AGILE will operate alongside existing European defence research and industrial programmes. Its €115 million budget will prioritize smaller suppliers and tech firms seeking expedited access to defence funding. The initiative combines grants, testing opportunities, and procurement pathways into a unified funding structure designed to enable quicker award processes and faster transition from development to operational deployment. The first funding cycle in 2027 will mark the launch of the scheme across participating European markets.