BRUSSELS / EuroWire / – The European Union has sanctioned a €115 million funding scheme aimed at accelerating the development of defence technologies. Known as AGILE, this programme targets smaller enterprises focusing on innovative and disruptive technologies. The formal approval process was finalized by the Council of the European Union on October 12. This initiative offers start-ups, scale-ups, and other qualified firms a specialized pathway to finance defence-related products with reduced development timelines and funding cycles.
AGILE aims to back both pioneering military innovations and civilian products that can be adapted for defence purposes. The programme aspires to award grants within a four-month window after the application phase begins. Technologies supported are expected to advance toward defence users within one to three years. Funding per project will range from €1 million to €5 million, with rules allowing selected initiatives to receive support covering up to 100% of their eligible costs.
The European Commission anticipates that roughly 20 to 30 projects will be financed during the initial phase. Eligible companies can include expenses incurred up to three months before the funding call closes, enabling ongoing development work during the application period. AGILE will fund technology development focused on missions and activities that facilitate the transition of completed products to defence markets. Additionally, the programme fosters quicker connections 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 experimental infrastructure across participating European nations. The framework also promotes collaboration between smaller tech developers and larger defence manufacturers. Member states will play a role in defining programme challenges based on identified defence capability needs. The scheme also simplifies procurement processes for products developed under its scope, offering an alternative route for funded technologies to transition from testing phases into defence supply chains and operational deployment.
Eligible participants will include entities from EU member states and associated nations, with Ukraine permitted to participate. Countries within the European Economic Area and European Free Trade Association are also eligible. Companies may apply individually where permitted by the programme rules, while consortium applications will continue to be accepted. The first call for proposals is expected to open in early 2027. Once the regulation completes the remaining legal and publication procedures, AGILE is slated to become fully operational.
Legal formalities set stage for 2027 funding implementation
The European Parliament approved the legislation on October 6 after a political agreement was reached in July. The initial proposal for AGILE was introduced in March 2026. Now, formal adoption requires signatures and publication before the regulation becomes effective. The Presidents of both the Parliament and the Council must endorse the document. Following publication in the EU Official Journal, the regulation will enter into force 20 days later.
AGILE will function alongside existing European initiatives in defence research and industry. Its €115 million budget aims to support smaller suppliers and technology firms seeking quicker access to defence funding. The programme integrates grants, testing opportunities, and procurement options within a streamlined funding structure. Policy officials have emphasized shorter award timelines and faster progression from development to operational use. The initial funding round in 2027 will mark the programme’s operational debut across participating European markets.