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EU approves €115M AGILE programme to back defence startups

What's the deal? The Council of the European Union approved a €115 million programme, called AGILE, to help defence startups and small and medium-sized enterprises (SMEs) develop technologies in AI, drones, and quantum computing. The European Parliament approved the plan last week.

What's the endgame? AGILE will fund 20 to 30 projects from SMEs in the EU, Ukraine, Iceland, Norway, and Liechtenstein, with each receiving between €1 million and €5 million. The goal is to move products from prototype to operational capability, reaching armed forces within one to three years.

Why now? Helen McEntee, Ireland's defence minister — Ireland currently holds the rotating Council presidency — said Ukraine showed that "innovation and cutting-edge technology can be decisive for defence resilience." (translated from Portuguese) The programme targets grant decisions within four months of application.

Beyond AI and quantum, AGILE can finance robotics, cyber capabilities, and space systems, including adapting civilian technologies for defence use. It is designed as a complement to the EU's existing defence industry instruments.

The signal: When presenting the plan in March, defence commissioner Andrius Kubilius noted that roughly 70% to 80% of EU defence spending goes to the sector's 10 largest companies, against under 40% in the US. "We need more innovative SMEs and startups," he said, arguing the bloc needs cheaper, more disruptive solutions to adapt quickly to new threats.

The plan still needs signatures from both institutions' presidents and publication in the EU's Official Journal before it takes effect.

Read more: jornaleconomico.sapo.pt

Image credit: ines s.

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