New AGILE defence innovation programme approved by Parliament

Quick and targeted support for disruptive innovation in defence technologies

Focus on SMEs, start-ups and scale-ups

A nimble complement to the EU’s existing defence industrial toolbox

The programme aims to respond to the new security environment shaped by Russia's war of aggression against Ukraine, where fast and low-cost defence innovation cycles are critical.

On Tuesday, MEPs approved the creation of a programme for agile and rapid defence innovation (AGILE), a new €115 million instrument designed to provide rapid, agile and targeted financial support to small and medium-sized enterprises (SMEs) – including start-ups and scale-ups – developing emerging and disruptive defence technologies. Parliament and Council negotiators provisionally agreed on establishing the programme in July 2026.

The programme is designed to stimulate innovation with fast-track grants and access to testing and certification. It provides a way for member states to be involved in setting challenges to ensure the products developed meet their capability needs.

The programme will focus on SMEs, start-ups and scale-ups working on emerging and disruptive defence products, including the adaptation of civil technologies for defence applications, to help bridge the gap between development and deployment. It will provide a fast-track, four-month time-to-grant, reinforcing AGILE's role as a nimble complement to the EU's existing defence industrial toolbox.

AGILE will also facilitate the connection between SMEs and so-called defence industrial “primes”, the major defence industry companies that dominate the sector, including through dedicated matchmaking to increase the uptake of AGILE supported products.

Quotes

“With AGILE, we are accelerating the path from innovation to deployment while strengthening our 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” Tonino Picula (S&D, Croatia), lead MEP for the Security and Defence Committee, said.

“Europe cannot afford to be slow when the threat is fast. AGILE is our answer: getting funding out quickly, bureaucracy stripped away, and the door firmly shut to those who do not share our values. Innovation is Europe's strength. Let us finally use it” Ivars Ijabs (Renew, Latvia), lead MEP for the Industry, Research and Energy Committee, said.

“AGILE will help turn Europe’s innovative potential into practical capabilities for our armed forces. By supporting SMEs and start-ups as they develop emerging technologies, the programme will bring new ideas into the defence ecosystem and strengthen Europe’s ability to deliver the solutions its forces need” Marie-Agnes Strack-Zimmermann (Renew, Germany), chair of the Security and Defence Committee, said.

Borys Budka (EPP, Poland), chair of the Committee on Industry, Research and Energy, said: “As Ukraine is relying on European support, our SMEs need targeted programs to accelerate the transition from prototype to operational capability. AGILE is designed to close that gap. The Russian aggression has rewritten the rules of engagement: the side that innovates faster, wins. Europe cannot afford to let its most promising defence innovators be slowed down by bureaucracy. Our job now is to prove this model works in practice, so it can serve as the blueprint for the upcoming European Competitiveness Fund and the next generation of defence programmes. Europe’s security depends on backing innovators who can turn promises into reality the fastest.”

Next steps

The legislation was adopted by 536 votes to 101, with 16 abstentions. It now needs to be formally endorsed by Council before publication on the Official Journal. The programme will enter into operation in the beginning of 2027.

Background

While the EU has already developed a substantial defence innovation framework, mostly aiming at long-term and large-scale projects, AGILE aims to address the fact that emerging and disruptive technologies (including AI, quantum computing, robotics, cyber capabilities, and space systems) are increasingly decisive for military effectiveness.

The AGILE programme will support the rapid innovation capacity of SMEs, including innovative startups and scaleups, in delivering emerging and disruptive defence products and technologies that address the most urgent challenges faced by member state armed forces, with a focus on cost-efficiency and reducing strategic dependencies on non-associated third countries.