The European Union has reached a political agreement to launch 'Agile', a €115 million fund that will allow SMEs and startups to access military facilities and accelerate innovation in defence.
The European Union has greenlit a pioneering fund to expedite innovation in defence. The 'Agile' programme, endowed with €115 million, will enable small and medium-sized enterprises and startups to access military test fields and receive aid in a record time of four months. The political agreement, concluded between the European Parliament and member states, aims to break the oligopoly of large defence contractors.
An express fund to break barriers
The 'Agile' programme is born with a clear premise: to accelerate military innovation in Europe. Aid will be granted within a maximum of four months, a record time for community bureaucratic standards. Additionally, companies will be able to claim expenses incurred up to three months before the closing of calls, thanks to a retroactive clause.
To prevent SMEs from drowning in paperwork, grants will be awarded in a simplified manner through lump-sum payments and global sums. The fund will support between 20 and 30 projects, providing up to 100% of the funding. A relief for smaller companies, which are often excluded from large defence contracts.
Access to military facilities and channels with giants
One of the most notable innovations of the agreement is the expedited access for SMEs to military testing and experimentation facilities. The European Commission considers this to be "a key barrier" for smaller companies to launch their products in the market. Until now, many startups with disruptive ideas have crashed against the high costs and bureaucracy to access these testing fields.
Moreover, the programme includes an intermediation mechanism that will facilitate the integration of SME developments into the supply chains of large defence contractors. Direct intermediation channels with industry giants will be created, a key step to democratise the market.
According to Defence Commissioner Andrius Kubilius, up to 80% of defence contracts in the EU end up in the hands of the top ten companies in the sector. In the United States, that percentage drops to 40%. An imbalance that 'Agile' aims to correct.
Deadlines and next steps
The provisional political agreement must be formally endorsed by the Twenty-Seven and by the full European Parliament in the coming months. Once this procedure and its corresponding legal review are completed, the regulation will come into force with its publication in the Official Journal of the EU. The goal is for the fund to be fully operational by early 2027.
The Defence Minister of Ireland, Helen McEntee, who has led the negotiations, has celebrated the speed of the process. "In the current security context, Europe must accelerate innovation and transform technological excellence into operational capability," she asserted after sealing the agreement.
For SMEs and startups in the defence sector, this fund represents a real opportunity to access a traditionally closed market. Interested companies should stay alert for upcoming calls, which will be published on the EU's tender portal. The deadline for submitting applications will be four months from the opening of each call, and aid will be granted on a first-come, first-served basis until the budget is exhausted.
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