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REPORT (COM(2026)0135 – C100089/2026 – 2026/0078(COD))

On the proposal for a regulation of the European Parliament and of the Council establishing the Programme for agile and rapid defence innovation (AGILE)

A-10-2026-0188

Committee on Security and Defence Committee on Industry, Research and Energy · Rapporteur: Tonino Picula, Ivars Ijabs

✦ In short · AI summary of this text, generated 25 Sept 2026

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Parliament's amended version of the Commission proposal sets up the AGILE Programme for agile and rapid defence innovation, running from 1 January 2027 to 31 December 2027 with an indicative envelope of EUR 115 000 000. The Programme supports SMEs, including innovative start-ups and scaleups, developing emerging and disruptive defence products and technologies, and their uptake by Member States' armed forces. It introduces accelerated and simplified award procedures, lump-sum grants, up to 100% of eligible costs, and an inducement intervention to attract non-EU SMEs, capped at 20% of the financial envelope. Only entities established in the EU or an associated third country and not controlled by non-associated third countries are eligible; Ukraine may associate without a financial contribution. The Commission must publish an interim report by 1 July 2028 and a final report, and assess whether the Programme should continue under the 2028–2034 Multiannual Financial Framework.

Committee position. The committees adopt Parliament's position at first reading, amending the Commission proposal to establish the AGILE Programme with a one-year duration, a EUR 115 000 000 envelope, simplified award procedures, an inducement intervention for non-EU SMEs, and reporting obligations.

Key points

  1. The Programme runs from 1 January 2027 to 31 December 2027 with an indicative financial envelope of EUR 115 000 000 in current prices.
  2. Its general objective is to support the rapid innovation capacity of SMEs, including innovative start-ups and scaleups, delivering emerging and disruptive defence products and technologies.
  3. Specific objectives include accelerating innovation cycles, scaling up start-ups, matchmaking with defence prime contractors, and increasing uptake by Member States' armed forces.
  4. Eligible actions include fast development of defence products and components, market uptake through field testing and demonstrations, cooperation with prime contractors, relocation, and supporting activities such as certification and skills.
  5. Recipients must be SMEs, established in the EU or an associated third country with executive management there, not controlled by non-associated third countries, and their infrastructure must be located there.
  6. The work programme may set up accelerated and simplified award procedures, allowing award decisions based on self-declarations, with final evaluation completed within four months of the application deadline.
  7. An inducement intervention may temporarily waive establishment criteria for non-EU SMEs, capped at 20% of the total financial envelope, with no pre-financing and full recovery if conditions are not met.
  8. Union support may cover up to 100% of eligible costs and take the form of lump sums or financing not linked to costs; costs incurred up to three months before the call closing may be eligible.
  9. Results may not be subject to control or restriction by non-associated third countries; transfers of ownership to such countries within 3 years after final payment require prior notification and approval.
  10. Ukraine may associate to the Programme without a financial contribution, and defence products supported under AGILE are eligible for immediate support under the Ukraine Support Loan.
  11. The Commission must publish an interim report by 1 July 2028 and a final report, assessing distribution of support, geographic and thematic spread, and reduction of strategic dependencies.
  12. The Commission should assess whether the Programme should be continued, adapted and reinforced under the 2028–2034 Multiannual Financial Framework.

Who is affected

  • SMEs, including innovative start-ups and scaleups, in the defence sector, which may receive grants, lump sums or other support.
  • Member States and associated third countries, whose armed forces are to take up the supported products and which must provide early procurement guarantees.
  • Ukraine, which may associate to the Programme without a financial contribution and whose armed forces may procure supported products.
  • European defence industrial prime contractors, system integrators and first-tier subcontractors, which may cooperate with supported SMEs.
  • Non-EU SMEs, which may participate temporarily under the inducement intervention if they relocate or establish executive management in the EU or an associated country.

Figures and deadlines

  • EUR 115 000 000 — indicative financial envelope for the Programme between 1 January 2027 and 31 December 2027.
  • 1 January 2027 to 31 December 2027 — period of the Programme.
  • 20% — maximum share of the total financial envelope for inducement interventions.
  • 100% — maximum share of eligible costs the Programme may finance.
  • four months — deadline for the Commission to complete final evaluation after the application deadline.
  • three months — maximum period before the closing of the call for proposals for costs incurred prior to application to be eligible.
  • 3 years — period after final payment during which transfers of ownership to non-associated third countries require prior approval.
  • 1 July 2028 — deadline for the Commission to publish the interim report.

Legal basis: Article 173(3) of the Treaty on the Functioning of the European Union.