MEPs back new EU defence innovation programme 

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• New programme to focus on quick and disruptive defence innovation 
• MEPs propose to simplify the scheme for SMEs and start-ups 
• Any product should be eligible for procurement by Ukraine 

The draft law 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 Thursday, the Committee on Industry, Research and Energy and the Committee on Security and Defence adopted their position on creation of the Programme for Agile and Rapid Defence Innovation (AGILE). The new proposal aims to accelerate innovation cycles, and support the uptake of new technologies by member state armed forces and European defence contractors, in order to facilitate their scaling-up across Europe. Technologies include AI, quantum computing, robotics, cyber capabilities, space systems, and unmanned autonomous systems (UAS).

In their amendments to the draft regulation, MEPs highlight the need for a swift, accessible and results‑oriented support for SMEs, including innovative start‑ups and scale‑ups. They propose that whenever possible, grants under the programme shall take the form of lump sums, to allow SMEs to focus on the achievement of agreed production.

MEPs also propose to tighten controls over the transfer and ownership of the results of AGILE support, emphasising that any export of exclusive licences to non-associated third countries must be notified and approved.

Furthermore, MEPs want to strengthen rules on inducement interventions by ensuring that no EU funding can be granted to entities from third countries that contravene the security and defence interests of the EU and its member states.

MEPs also say that due to the urgent need to support Ukraine with the most innovative and disruptive products from Europe’s defence industrial base, any product supported by AGILE should be considered eligible for procurement by Ukraine through the Ukraine support loan.

A blueprint for defence innovation under the next MFF

AGILE will be a time-limited pilot programme running during 2027 under the current 2021-2027 Multiannual Financial Framework (MFF), with a €115 million financial envelope. The experience gained will provide lessons and insights on the approach to defence innovation for the next MFF. MEPs say the Commission should assess whether the programme, if successful, should be continued, adapted and reinforced.

Quotes

“Europe cannot afford to be slow when the threat is fast. AGILE is our answer: 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,” lead MEP for the Industry, Research and Energy Committee (ITRE) Ivars Ijabs (Renew, Latvia) said.

“With the adoption of AGILE, we are creating a faster and more effective pathway from defence innovation to operational deployment. By supporting SMEs and start-ups, strengthening resilience against dependencies on third countries, facilitating procurement, including for Ukraine’s needs, and ensuring robust oversight, we are turning promising technologies into real capabilities for our own security,” said lead MEP for the Security and Defence Committee (SEDE) Tonino Picula (S&D, Croatia)

ITRE Chair Borys Budka (EPP, Poland) said: “the Russian aggression has rewritten the rules of engagement: the side that innovates faster, wins. AGILE delivers a four-month time-to-grant, ensuring real capital reaches agile start-ups rather than getting choked by years of paperwork. As ITRE chair, I insisted on keeping lump-sum financing the default, because Europe’s most innovative SMEs don’t have a grants department. Our focus now is proving this model works, so it becomes the blueprint for the upcoming European Competitiveness Fund and the next generation of defence programmes.”

“With its strong mandate for AGILE, Parliament is sending a clear signal: European defence innovation must be driven by operational needs and deliver the capabilities needed to close Europe’s most pressing capability gaps” said SEDE chair Marie-Agnes Strack-Zimmermann (Renew, Germany). “AGILE will accelerate the development, testing and deployment of emerging technologies so that Europe’s armed forces can benefit from innovation as quickly as possible.”

Next steps

The set of amendments to the legislative proposal was adopted jointly by the two committees with 76 votes in favour, 8 against and 7 abstentions. MEPs also voted to open negotiations with Council with 83 votes to 8, with no abstentions. Interinstitutional negotiations will start under the Irish Presidency of the Council, following the Council’s adoption of its own position on the file.

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 States’ armed forces, with a focus on cost-efficiency and reducing strategic dependencies on non-associated third countries. It is designed to accelerate the transition from innovation to deployment, with a targeted time-to-grant of four months.