BRUSSELS / EuroWire / – The European Union has approved a €115 million funding scheme aimed at accelerating the development of defence technologies. Known as AGILE, the programme targets smaller enterprises working on emerging and disruptive innovations. The European Union Council completed the formal adoption process on October 12. This initiative offers start-ups, scale-ups, and other qualifying firms a dedicated route for financing defence-related products with faster development timelines and shorter funding cycles.
AGILE aims to support both new military innovations and civilian products adaptable for defence purposes. The scheme targets a four-month timeframe for awarding grants after application submission. Technologies supported should move toward defence users within one to three years. Grants will range from €1 million to €5 million. The rules allow projects to receive up to 100% support covering their eligible costs.
The European Commission anticipates funding around 20 to 30 projects in the initial phase. Eligible companies can claim certain expenses incurred up to three months prior to the closing of a funding call. This provision ensures ongoing development during the application period. AGILE will finance mission-oriented technology development and activities that help products reach defence customers. The programme will also promote faster collaboration between innovative suppliers, testing facilities, and established defence firms.
AGILE broadens access to defence testing and procurement channels
Participating companies under AGILE will gain better access to testing and experimentation infrastructure across European nations. The framework supports connections between smaller tech developers and larger defence manufacturers. EU member states will help define challenges based on specific defence capability needs. The scheme also introduces simplified procurement measures for products developed under AGILE. These rules enable funded technologies to transition from testing phases into defence supply chains and operational deployment.
Eligible participants include companies from EU member states and associated nations. Ukraine is also permitted to participate. Countries within the European Economic Area and European Free Trade Association are included as well. Companies may apply individually if allowed by the programme rules. Consortium applications will remain an option. The first call for proposals is expected in early 2027. AGILE will become operational once the regulatory and legal steps are finalized.
Legal procedures near completion ahead of 2027 funding start
The European Parliament approved the legislation on October 6 after reaching a political agreement in July. The proposal for AGILE was first introduced in March 2026. Now, formal adoption awaits signatures and publication before the regulation takes effect. The Presidents of Parliament and the Council must sign the document. It will be published in the EU Official Journal. The regulation will come into force 20 days after publication.
AGILE will run alongside existing European defence research and industrial programmes. Its €115 million budget will focus on smaller suppliers and tech firms seeking faster access to defence funding. The scheme combines grants, testing opportunities, and procurement pathways within one structure. The process is designed for shorter award timelines and quicker transition from development to operational deployment. The first round of funding in 2027 will mark its full activation across participating European markets.