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EU Gives Final Approval to AGILE as Ukraine Gains Access to Defense Startup Funding
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The EU Council formally approved a new defense innovation program designed to accelerate emerging technologies from prototype to operational use, the European Council reported on October 12.
The Council formally adopted AGILE as a €115 million ($128.5 million) defense innovation instrument providing rapid financial support to SMEs, start-ups, and scale-ups developing emerging and disruptive military technologies. The program is designed to help companies move from prototype to operational capability more quickly.
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The program is intended to help companies move technologies from development into military use more quickly, including by adapting civilian technologies for defense applications.
“Ukraine has shown us that innovation and cutting-edge technology can be decisive for defence preparedness and resilience,” Irish Defense Minister Helen McEntee stated. “AGILE gives SMEs an additional key instrument to do what they do best, innovate, only faster and at greater scale.”
According to the Council, companies supported through AGILE will be eligible for fast-track grants with a target approval time of four months. Relevant products and technologies are expected to reach defense forces within one to three years.
EU member states will help define specific capability challenges under the program, while participating companies will receive accelerated access to testing and experimentation facilities.
AGILE will also provide matchmaking between smaller companies and major defense manufacturers, while introducing simplified procurement procedures for products developed through the program.
The Council noted that the initiative was designed as a complement to existing EU defense-industrial instruments and is intended to address barriers that smaller companies face when moving new technologies into production and military deployment.
The regulation will now be signed by the presidents of the European Parliament and the Council before publication in the EU’s Official Journal. It will enter into force 20 days after publication, with the first call for proposals expected in early 2027.
In July, Babel reported, citing its sources in the European Parliament, that Ukraine would be integrated into the AGILE program without paying an entry fee, allowing Ukrainian defense developers to access its funding and support mechanisms.
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The program also includes a dedicated RAZOM mechanism designed to give the Ukrainian Armed Forces access to weapons and technologies financed through AGILE and certified by the European Commission. Babel noted that some European Parliament officials considered the program’s limited budget its main weakness, while suggesting funding could be expanded if AGILE proves effective.
The EU’s new AGILE program forms part of a wider effort to close Europe’s defense production gap with Russia. In April, the European Commission proposed a $153.8 billion defense and space budget, with Commissioner Andrius Kubilius warning that Europe must “outproduce Russia” to strengthen deterrence.
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