The European Parliament and the Council of the European Union have reached a provisional political agreement on a new €115 million defence innovation programme aimed at accelerating the development of emerging military technologies by small and medium-sized enterprises (SMEs), including startups and scaleups.
The programme, known as AGILE, is designed to respond to Europe’s changing security environment following Russia’s invasion of Ukraine, where rapid, low-cost innovation has become increasingly important on the battlefield.
Lawmakers said the initiative would provide targeted financial support to companies developing emerging and disruptive defence technologies while helping bridge the gap between research, testing and deployment.
Under the agreement reached Wednesday between Members of the European Parliament and the Irish Presidency of the Council, AGILE will offer fast-track grants, quicker access to testing and certification facilities, and simplified procurement procedures for products supported by the programme.
The initiative is intended to accelerate defence innovation across the European Union while reducing the bloc’s dependence on non-EU suppliers in strategically important technologies.
Support for startups and emerging technologies
The agreement maintains the European Commission’s proposed four-month time-to-grant process, allowing companies to receive funding more quickly than under existing EU programmes.
The programme will focus on SMEs, startups and scaleups developing disruptive technologies, including artificial intelligence, quantum computing, robotics, cyber capabilities and space systems. It also allows for the adaptation of civilian technologies for defence purposes.
Lawmakers said AGILE would also strengthen links between smaller companies and major European defence contractors through dedicated matchmaking initiatives aimed at bringing new technologies to market more quickly.
Another key feature of the programme is streamlined access to testing and experimentation facilities, which lawmakers identified as one of the biggest obstacles facing smaller defence companies.
Lead negotiator Tonino Picula, a Croatian member of the Socialists and Democrats group serving on Parliament’s Security and Defence Committee, said the agreement would help accelerate the transition from innovation to deployment while strengthening Europe’s defence industrial base and supporting Ukraine.
Ivars Ijabs of Latvia, the lead negotiator from Parliament’s Industry, Research and Energy Committee, said Europe could not afford slow decision-making in the face of rapidly evolving security threats, describing AGILE as a mechanism to reduce bureaucracy while delivering funding more quickly.
Security and Defence Committee Chair Marie-Agnes Strack-Zimmermann said the agreement demonstrated that EU institutions could move quickly on defence policy, noting that the political deal was reached just four months after the Commission presented its proposal.
Industry Committee Chair Borys Budka said Russia’s war against Ukraine had shown that military success increasingly depends on the ability to innovate rapidly. He said the programme would help SMEs move technologies from prototype to operational capability and could serve as a model for future EU defence funding.
The provisional agreement must still receive formal approval from both the European Parliament and the Council before becoming law. Once adopted, the regulation will enter into force 20 days after publication in the Official Journal of the European Union, with the programme expected to become operational in early 2027.
AGILE will complement existing EU defence funding programmes by focusing on shorter innovation cycles and the rapid development of technologies considered critical for Europe’s future military capabilities.
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