BRUSSELS / EuroWire / – The European Union has authorized a funding scheme worth €115 million aimed at accelerating the development of defense technologies. Known as AGILE, this program will prioritize smaller enterprises working on innovative and disruptive technological solutions. The Council of the European Union finalized the formal approval process on October 12. The initiative offers start-ups, scale-ups, and other qualifying companies a streamlined pathway for financing defense-related products, featuring shorter development timelines and funding cycles.
Supporting both cutting-edge military innovations and civilian products adaptable for defense, AGILE aims for a four-month period to complete grant awards once the application phase begins. Technologies receiving support are expected to progress toward deployment with defense users within one to three years. Grants will vary from €1 million to €5 million, with rules permitting projects to receive up to 100% support for eligible expenses.
The European Commission anticipates that approximately 20 to 30 projects will be financed during the initial phase of the program. Eligible firms can include expenses incurred up to three months prior to the closing date of a funding call, enabling continuous development during the application process. AGILE will fund activities related to mission-specific technology development and efforts to transition completed products into defense markets. Additionally, the program aims to enhance collaboration between innovative suppliers, testing facilities, and established defense industry players.
AGILE broadens opportunities for defense testing and procurement
Participants chosen through AGILE will benefit from increased access to testing and experimentation infrastructure across the involved European nations. The framework also fosters stronger links between smaller tech developers and major defense contractors. Member states will help shape the program’s challenges based on identified defense capability needs. AGILE also features simplified procurement procedures for products created through the initiative, providing a new avenue for funded technologies to progress from testing phases to deployment within defense supply chains and operational environments.
Eligible applicants will include companies from EU member states and associated countries, with Ukraine also permitted to participate. Countries within the European Economic Area and European Free Trade Association are eligible as well. Applicants can submit proposals individually where permitted under the rules, though consortium applications will continue to be an option. The first call for proposals is projected for early 2027. Once the legal and publication formalities are completed, AGILE will officially become operational.
Legal approvals set the stage for 2027 funding initiation
On October 6, the European Parliament approved the finalized legislation following a political agreement reached in July. The proposal for AGILE was initially introduced by EU institutions in March 2026. Now that formal adoption has been secured, the next steps involve signatures and publication, after which the regulation will become effective. The signatures of the Presidents of Parliament and the Council are required, followed by publication in the EU Official Journal. The regulation will enter into force 20 days after it is published.
AGILE will operate alongside existing European programs focused on defense research and industry. Its €115 million budget aims to support smaller suppliers and tech firms seeking faster access to defense funding. The program integrates grants, testing opportunities, and procurement channels within a single structure designed around shorter award timelines and quicker transitions from development to operational deployment. The first funding cycle in 2027 will mark the beginning of the scheme’s active deployment across the participating European markets.