EU Unveils €115m AGILE Fund to Fast‑Track Disruptive Defence Innovation

New EU programme aims to speed defence tech from lab to battlefield, backing startups and SMEs with rapid funding to deliver AI, quantum and drone capabilities.

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The European Commission presented on Wednesday a new €115 million funding tool, AGILE, to bring disruptive defence technology from the lab to the field at record speed. The pilot instrument is set to accelerate the development and testing of disruptive defence innovations and their market uptake, such as artificial intelligence, quantum or drones, focusing on supporting small and medium-sized enterprises (SMEs), including start-ups and scale-ups.

In a press release, the Commission said: “Russia's war of aggression against Ukraine has shown that success on the battlefield now depends on short innovation cycles; the ability to develop, test, and deploy new technologies and cost-efficient solutions in weeks or months rather than years.

“With modern warfare going through a rapid digital and technological transformation, AGILE is designed for the ‘New Defence' players, the startups and tech innovators who move at high speed.”

The Commission noted that to support these innovators, AGILE will provide faster, more flexible funding for individual companies, and allow innovations to be deployed as quickly as possible. The goal is to operate with an unprecedented time-to-grant of just four months and for technologies to reach defence forces between 1-3 years.

AGILE will support between 20 and 30 projects, providing up to 100% funding for all eligible costs. It will also include a retroactive clause for companies to claim expenses incurred up to three months prior to the closing of the call for applications, to facilitate quick innovation, said the Commission.

The work programme will cover two main types of activities: mission-driven development of disruptive defence products and technologies, and market delivery by helping defence solutions reach the actual markets.

The programme aims to be fully aligned with the most pressing needs of EU Member States, and to ensure that European defence is ready to respond to any threat at a moment's notice.

Reshaping battlefield dynamics

With AGILE, we are breaking down the barriers that have kept our most creative tech companies out of defence. We want to create a culture of rapid doing, making sure that Europe´s SMEs and start-ups can foster European deterrence and safety by delivering innovative solutions,” said Henna Virkkunen, Commission Executive Vice-President for Tech Sovereignty, Security and Democracy.

Andrius Kubilius, Commissioner for Defence and Space, said: “These changes are reshaping battlefield dynamics, where the added value of small players is clear. They can bring innovation, flexibility, and cost-efficient solutions, along with new operational ideas.

“It is therefore key that we rapidly test, validate, and integrate these technologies into our defence capabilities, ensuring that Europe's defence industry can keep pace with the rapidly changing nature of modern warfare.” 

Next steps

The Commission will present a proposal for a new Regulation establishing AGILE to the European Parliament and the Council for adoption under the ordinary legislative procedure.

The instrument is expected to be operational from early 2027 to ensure the fast deployment of new technologies to European armed forces.

Background

In recent years, the European Union has stepped up efforts to strengthen defence research and development, notably through the European Defence Fund (EDF), which promotes cooperative, cross-border projects. Within this framework, the EU Defence Innovation Scheme (EUDIS) supports start-ups and SMEs, while the Hub for EU Defence Innovation (HEDI), launched by the European Defence Agency, strengthens cooperation among Member States and stakeholders. Together, these instruments provide a solid basis for collaborative defence innovation in Europe.

At the same time, additional efforts are needed to complement existing tools with more agile mechanisms. Recent initiatives, including the Preserving Peace – Readiness Roadmap 2030 and the White Paper for the Future of European Defence – Readiness 2030, stress the need to accelerate innovation and uptake of new technologies.

In this context, the EU Defence Industry Transformation Roadmap calls for a more speed, agility and risk-taking across the European defence ecosystem, and highlights the need for new, more responsive support instruments, paving the way for the AGILE programme.

 

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