BRUSSELS / EuroWire / – The European Union has endorsed a €115 million scheme designed to fast-track innovation in the defense sector across member states. The initiative, known as AGILE, aims to bolster small and medium-sized enterprises, including startups and scale-ups. Following the final legislative steps, the Council of the European Union formally approved the regulation on October 12. The program emphasizes emerging and disruptive technologies that can swiftly transition from research and development into operational defense applications.
Funding will support the creation and testing of innovative defense solutions, including civilian technologies that are adaptable for military use. The initiative aims to award grants within four months of receiving applications, with EU officials anticipating that the supported technologies will be delivered to defense forces within one to three years. Grant amounts will vary from €1 million to €5 million, providing smaller companies with direct financial support to develop projects aligned with program criteria.
European Commission forecasts that AGILE will fund approximately 20 to 30 projects during its initial phase. Funding may cover up to 100% of eligible costs for selected initiatives. Companies can also claim expenses incurred up to three months prior to the closing date of a call. The work plan will focus on mission-oriented product development and market deployment activities, facilitating the transition of defense solutions toward operational customers and procurement channels.
Rapid grants aimed at smaller defense firms
Supported companies will benefit from expedited access to testing and experimentation facilities across Europe. The framework also facilitates matchmaking between smaller innovators and leading defense manufacturers. Member states will assist in defining the program’s challenges to ensure funded work addresses the specific capability needs identified. Additionally, the rules include simplified procurement procedures for supported products, enabling successful projects to integrate into defense supply chains and operational deployment across participating European markets.
The first call for proposals is scheduled for early 2027, coinciding with the program’s operational start. Eligible applicants include companies from EU member states and associated countries, with Ukraine, as well as nations in the European Economic Area and the European Free Trade Association, permitted to participate. Both individual companies and consortiums can apply under the funding framework, depending on project scope.
Scheduled launch in early 2027
Following the approval by the European Parliament through a plenary vote on October 6 and a political agreement reached in July, AGILE was first introduced to EU officials in March 2026 as a dedicated tool for accelerating defense technology development. Its formal adoption now clears the remaining legal processes before it becomes operational. The regulation must be signed by the presidents of the Parliament and Council before being published in the EU Official Journal, with enforcement beginning 20 days afterward.
AGILE will serve as a complementary measure to existing European programs that support defense research, industrial growth, and technology adoption. Its €115 million budget is embedded within the current EU financial framework, prioritizing smaller and newer defense suppliers. The funding approach combines rapid grant approvals, testing access, and pathways into procurement for selected projects. The goal is to shorten the cycle from innovative technology development to operational deployment, enabling European defense clients across participating nations to adopt promising solutions more efficiently.