BRUSSELS / EuroWire / – A funding initiative worth €115 million has been approved by the European Union to accelerate the development of defense technologies. Known as AGILE, this programme emphasizes support for smaller enterprises engaged in emerging and disruptive innovations. The European Union’s Council finalized the formal approval on October 12. The initiative provides startups, scale-ups, and other qualifying companies with a dedicated pathway to finance defense-related products, enabling shorter cycles for development and funding.
AGILE aims to fund both innovative military technologies and civilian products that could be adapted for defense applications. The programme sets a target of four months for the completion of grant awards once the application process opens. Technologies supported are expected to advance toward deployment within one to three years for defense users. Grant amounts will vary from €1 million to €5 million. Funding regulations permit selected projects to receive support covering up to 100% of their eligible expenses.
The European Commission anticipates that approximately 20 to 30 projects will be financed during the initial phase of the programme. Eligible companies can claim certain project costs incurred up to three months before the closure of a funding call, allowing ongoing development during the application period. AGILE will support mission-oriented technology development and activities that facilitate the transition of finished products to defense markets. Additionally, the programme promotes faster collaboration between innovative suppliers, testing facilities, and established defense firms.
AGILE broadens access to testing and procurement opportunities in defense
Participants chosen through AGILE will gain enhanced access to testing and experimental infrastructure across European nations involved. The framework also encourages stronger links between smaller tech developers and larger defense manufacturers. Member states will contribute to defining the programme’s challenges based on identified defense capability needs. The initiative also introduces streamlined procurement procedures for products developed under its scope, providing an additional route for funded innovations to transition from testing phases into supply chains and operational deployment.
Eligible participants include companies from EU member states and associated nations. Ukraine’s participation is also permitted, along with eligible countries within the European Economic Area and European Free Trade Association. Companies may submit individual applications where allowed, with consortium proposals remaining an option as well. The first call for proposals is anticipated in early 2027. Once the regulation completes the remaining legal and publication steps, AGILE is expected to become operational.
Legal finalization set for 2027 launch of funding
The European Parliament approved the legislation on October 6 following a political agreement reached by negotiators in July. The proposal for AGILE was initially introduced in March 2026. Now that the formal adoption has been completed, the next steps involve signing and publishing the regulation. It must be signed by the Presidents of the Parliament and the Council. The regulation will then be published in the EU Official Journal and will come into force 20 days after publication.
AGILE will operate alongside existing European defence research and industrial programmes. Its €115 million budget is aimed primarily at smaller suppliers and tech firms seeking quicker access to defense funding. The programme integrates grants, testing opportunities, and procurement pathways into a single funding structure. The design emphasizes shorter award timelines and rapid movement from development stages to operational deployment. The first funding cycle, scheduled for 2027, will mark the beginning of the programme’s active engagement across European markets.