EU approves €115 million programme to accelerate defence innovation

The Council of the European Union has formally adopted a €115 million programme to help small and medium-sized enterprises (SMEs), including startups and scale-ups, develop and test new defence technologies.

The programme, known as the Programme for Agile and Rapid Defence Innovation (AGILE), is designed to shorten the time between developing a technology and putting it into operational use. The Council adopted the regulation on Oct 12, following a vote by the European Parliament on Oct 6.

AGILE will support emerging defence products and technologies, including the adaptation of technologies originally developed for civilian use to military applications.

Grants targeted within four months

Under the programme, the EU aims to reduce the time required to award grants to four months. Supported products and technologies are expected to reach defence forces within one to three years.

The initiative will focus on developing and testing innovative defence solutions that address capability requirements identified with EU member states. It will also provide participating businesses with faster access to testing and experimentation facilities, which can be difficult for smaller companies to secure.

The programme will facilitate connections between smaller innovators and major defence companies to help bring supported technologies into wider use. It will also simplify procurement procedures for products receiving AGILE support.

Programme targets smaller defence innovators

AGILE is intended to give smaller companies a more direct route to developing defence products and bringing them to market. Startups and scale-ups can face challenges in financing research, testing prototypes and navigating procurement processes before their technologies can be adopted by defence forces.

The programme will support both the development of new defence technologies and efforts to bring defence solutions to market. It is intended to help address the gap between producing a working prototype and deploying it operationally.

The European Commission proposed the programme in March 2026. The Council and European Parliament reached a provisional political agreement on the initiative on July 15 before completing the legislative approval process.

EU links faster innovation to defence preparedness

The EU has cited Russia’s war against Ukraine as evidence of the importance of developing and deploying defence technologies rapidly. Drones, autonomous systems and other emerging technologies have increased the need for faster innovation and testing.

AGILE forms part of the EU’s broader efforts to strengthen its defence industrial and technological capabilities. Unlike larger funding instruments, it is specifically designed to provide rapid and targeted support to smaller businesses developing disruptive defence products.

First funding call expected in early 2027

The regulation will be signed by the presidents of the European Parliament and the Council and published in the Official Journal of the European Union. It will enter into force 20 days after publication.

The first call for proposals is expected in early 2027. The programme will provide a new funding route for smaller businesses seeking to develop and test technologies for European defence needs.