The European Commission today unveiled a new €115 million financial instrument aimed at developing cutting-edge defence technologies “in record time.”

The pilot instrument, called “AGILE,” is primarily targeted at SMEs, start-ups, and fast-growing companies (scale-ups) operating in the “new defence” sector. It will support advanced technologies such as artificial intelligence, quantum technologies, and drones.

According to the Commission, the war in Ukraine has highlighted the need for significantly faster innovation cycles, enabling new defence technologies to be developed, tested, and deployed within weeks or months rather than years.

“The war in Ukraine has shown that, to make the European defence industry more competitive, we must accelerate innovation,” said Commission Vice-President for Technology Henna Virkunen. “AGILE is our new €115 million funding instrument designed to take cutting-edge defence technologies from the laboratory to the field at record speed.”

AGILE will provide flexible, fast-track funding to businesses, with the goal of reducing the time from application to grant approval to just four months. The program also aims to shorten the timeline—from funding to development, testing, and operational use by European armed forces—to between one and three years.

It is expected to support 20 to 30 projects, covering up to 100% of eligible costs. The scheme also allows for the retroactive inclusion of costs incurred up to three months prior to the application deadline.

Defence Commissioner Andrius Kubilius noted that “around 70–80% of defence procurement in EU countries—particularly those with the highest spending—is directed to the ten largest contractors in the industry.” He stressed the need for “more disruptive and cost-effective solutions for our armed forces,” emphasizing that alongside high-tech projects, “we also need solutions that are ‘good enough’ to enable mass production.”

He added that, under the AGILE program, “the Commission will be able to approve grants ranging from €1 million to €5 million within four months—a speed almost unimaginable for EU bureaucracy.”

The initiative forms part of the EU’s broader effort to strengthen defence readiness, complementing existing instruments such as the European Defence Fund (EDF) and innovation programs like EUDIS and HEDI.

The European Commission will now submit a legislative proposal to the European Parliament and the Council, with the aim of making AGILE operational by early 2027.