EU Strikes Deal on €115 Million AGILE Defence Innovation Programme for SMEs
European Parliament negotiators and the Irish Presidency of the Council reached a provisional political agreement on Wednesday on the creation of a new programme for agile and rapid defence innovation, known as AGILE. The instrument, endowed with €115 million, is designed to provide rapid, agile and targeted financial support to small and medium-sized enterprises (SMEs) — including start-ups and scale-ups — that are developing emerging and disruptive defence technologies.
The draft law is framed as a direct response to the new security environment shaped by Russia's war of aggression against Ukraine, where fast and low-cost defence innovation cycles are described as critical. The co-legislators said they worked constructively and pragmatically together to ensure the pioneering programme can be implemented and become operational within months.
What the Programme Does
AGILE is designed to stimulate innovation through fast-track grants and access to testing and certification facilities. It provides a mechanism for member states to be involved in setting challenges, so that the products developed meet their specific capability needs, and it simplifies procurement of products supported under the programme.
The programme also aims to accelerate defence innovation among SMEs across the EU and to demonstrate that SMEs and start-ups can provide the technological solutions to Europe's capability needs. A further stated goal is to play a role in reducing Europe's strategic dependencies. Backers of the scheme say this will help make the case for increased support to be directed towards SME innovation in the next Multiannual Financial Framework (MFF).
While the EU has already developed a substantial defence innovation framework, mostly aimed at long-term and large-scale projects, AGILE addresses the fact that emerging and disruptive technologies — including artificial intelligence, quantum computing, robotics, cyber capabilities, and space systems — are increasingly decisive for military effectiveness. The programme will focus specifically on cost-efficiency and on reducing strategic dependencies on non-associated third countries.
Key Elements of the Agreement
The provisional deal contains four main pillars:
Focus on SMEs and Disruptive Innovation
The agreement confirms the programme's focus on SMEs, start-ups and scale-ups working on emerging and disruptive defence products, including the adaptation of civil technologies for defence applications. The objective is to help bridge the gap between development and deployment of such technologies.
Speed and Scope
The agreement maintains the fast-track, four-month time-to-grant envisaged by the European Commission, reinforcing AGILE's role as a nimble complement to the EU's existing defence industrial toolbox.
Connection with Defence Industrial "Primes"
The new programme will facilitate connections between SMEs and the major defence industry companies that dominate the sector — referred to as defence industrial "primes" — including through dedicated matchmaking arrangements intended to increase the uptake of AGILE-supported products.
Access to Testing
The deal confirms fast-track access to testing and experimentation facilities, addressing what negotiators identified as a key barrier for SMEs in bringing products to market.
Voices from the Parliament
Tonino Picula (S&D, Croatia), the lead MEP for the Security and Defence Committee (SEDE), said the swift agreement would accelerate the path from innovation to deployment while strengthening SMEs, ensuring support for Ukraine, reinforcing safeguards against strategic dependencies, enhancing security of supply, and providing robust oversight to help shape future EU defence initiatives.
Ivars Ijabs (Renew, Latvia), the lead MEP for the Industry, Research and Energy Committee (ITRE), argued that Europe could not afford to be slow when the threat is quick. He characterised AGILE as the EU's answer: funding deployed quickly, bureaucracy stripped away, and the door firmly shut to those who do not share European values. Innovation, he said, is Europe's strength, and it was time to use it.
Marie-Agnes Strack-Zimmermann (Renew, Germany), chair of the SEDE committee, said AGILE creates the conditions for new defence technologies to be developed, tested and deployed more quickly, so that innovation reaches Europe's armed forces faster. She described the agreement as a strong signal that Europe can act with speed and determination when it comes to strengthening its security, noting that Parliament, Council and Commission had delivered a political agreement through swift, constructive and highly productive cooperation — just four months after the Commission presented its proposal.
ITRE Chair Borys Budka (EPP, Poland) said that, with Ukraine relying on European support, SMEs need targeted programmes to accelerate the transition from prototype to operational capability. He argued that Russian aggression has rewritten the rules of engagement, and that the side that innovates faster wins. Europe, he said, cannot afford to let its most promising defence innovators be slowed down by bureaucracy. He added that the task now is to prove the model works in practice, so it can serve as the blueprint for the upcoming European Competitiveness Fund and the next generation of defence programmes.
Next Steps and Timeline
The provisional agreement must still be formally endorsed by both Parliament and Council. Once adopted, the regulation will enter into force 20 days after its publication in the EU Official Journal. The new programme is on track to become operational from early 2027.
Several verified sources, together with artificial intelligence, were used in the preparation of this article. The content was reviewed by our editorial team prior to publication. Disclosure provided in accordance with Article 50 of the EU Artificial Intelligence Act (AI Act).
