Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Programme for agile and rapid defence innovation (AGILE)
Date: 2026-03-25
Institutions: Directorate-General for Defence Industry and Space, European Commission
Subjects: EU programme, European arms policy, European defence policy, common security and defence policy, defence industry, innovation, scale-up company, small and medium-sized enterprises, start-up, technology

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   EUROPEAN COMMISSION  Brussels, 25.3.2026  COM(2026) 135 final 2026/0078 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Programme for agile and rapid defence innovation (AGILE)  (Text with EEA relevance)  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Defence innovation cycles are accelerating at unprecedented speed. Emerging and disruptive 
technologies in fields such as Artificial Intelligence (AI), quantum, robotics, cyber and space 
are  becoming  decisive  for  military  effectiveness.  At  the  same  time,  New  Defence  players 
(particularly  Small  and  Medium  Enterprises  (SMEs)  and  start-ups,  including  those  coming 
from the civilian sector), are becoming a significant driving force for the transformation of the 
EU  defence  industry.  By  enabling  faster  innovation  cycles,  greater  agility,  cost-efficient 
solutions and novel operational concepts, these actors are reshaping how innovative defence 
technologies and products are developed and delivered. 

In recent years, the European Union has made substantial progress in strengthening defence 
research  and  development.  The  European  Defence  Fund  (EDF)  is  the  Union’s  flagship 
defence  R&D  programme  and  plays  a  central  role  in  fostering  structured,  long-term  and 
cooperative defence R&D across Europe. By supporting large-scale projects involving several 
Member  States,  the  EDF  enables  the  development  of  complex,  costly  and  technologically 
sophisticated  defence  systems  that  no  single  Member  State  could  develop  alone.  It  is 
instrumental  in  strengthening  cross-border  industrial  cooperation1,  reducing  fragmentation 
and  reinforcing  the  technological  and  industrial  base  underpinning  Europe’s  long-term 
defence capabilities.  

Within  this  framework,  targeted  initiatives  have  been  launched  at  EU  level  to  provide 
enhanced  support  to  innovation  and  non-traditional  defence  actors.  Within  the  EDF 
framework, the EU Defence  Innovation Scheme  (EUDIS) provides targeted support to non-
traditional defence actors, including SMEs and innovative startups and scaleups. In addition, 
the  Hub  for  EU  Defence  Innovation  (HEDI),  launched  by  the  European  Defence  Agency 
(EDA) in 2022, acts as a platform fostering close collaboration among Member States and EU 
stakeholders  on  defence  innovation  matters.  The  NATO’s  DIANA  programme,  the  NATO 
Innovation Fund and the Rapid Adoption Action Plan also aim to accelerate the adoption of 
new defence technologies and support new defence actors. 

Together,  these  instruments  form  a  robust  backbone  for  sustained,  cooperative  and 
strategically  oriented  defence  research  and  technology  development  in  Europe.  At  the  same 
time,  the  rapidly  evolving  security  environment  highlights  the  need  to  complement  these 
instruments  with  additional  mechanisms  tailored  to  different  innovation  dynamics.  The 
Preserving Peace – Defence Readiness Roadmap 20302 and the White Paper for the Future of 
European Defence – Readiness 20303 stressed the need to accelerate innovation, shorten time-
to-market  and  ensure  the  rapid  uptake  of  disruptive  technologies  to  support  EU  defence 
readiness.  

The  EU  Defence  Industry  Transformation  Roadmap4,  adopted  on  19  November  2025,  calls 
for  a  fundamental  shift  in  mindset  and  processes  across  the  European  defence  ecosystem 
towards greater speed, agility and risk-taking. It explicitly identifies the need to develop new, 

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Without prejudice to Union competition rules, in particular Article 101 TFEU 
Preserving Peace – Defence Readiness Roadmap 2030 
White Paper for European Defence – Readiness 2030 
EU Defence Industry Transformation Roadmap 

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more  responsive  approaches  to  support  disruptive  defence  innovation  and  the  emergence  of 
New Defence players.   

Against this background, there is a need to enhance the EU's capacity to support rapid, high 
technology-readiness-level defence innovation that responds directly to the urgent capability 
development needs of Member States. By design, the EDF is particularly well suited to long-
term,  complex,  and  capital-intensive  programmes  that  benefit  from  cross-border  industrial 
cooperation  and  strategic  alignment  among  Member  States.  At  the  same  time,  the  EDF’s 
primary  objectives  and  standard  procedural  architecture  naturally  prioritise  robustness, 
inclusiveness, and scale over speed.  

Yet  promising  defence  innovations,  especially  those  emerging  from  civilian  technologies  or 
small  companies,  often  struggle  to  bridge  the  gap  between  development  and  operational 
deployment. This can slow the scaling of breakthrough solutions, limit the emergence of new 
defence players, and delay the translation of innovation into capabilities for armed forces. 

To address this specific gap, the EU Defence Industry Transformation Roadmap proposed the 
establishment  of  a  programme  for  rapid  and  agile  defence  innovation  (AGILE).  AGILE  is 
conceived  as  a  complementary  instrument  to  the  EDF  and  EUDIS,  as  well  as  other  EU 
defence programmes, fulfilling a distinct but reinforcing role. EUDIS represents an umbrella 
of actions embedded within the EDF, including targeted R&D grants, hackathons, a business 
accelerator  and  matchmaking  activities.  For  companies  that  have  already  engaged  in  EU 
defence  actions  such  as  EUDIS  Hackathons  or  the  Business  Accelerator,  AGILE  would 
represent a natural next step, providing rapid and streamlined support to bring their solutions 
to  market  quickly.  EDF,  in  turn,  offers  a  longer-term  pathway,  integrating  these  companies 
into broader defence industrial collaboration, pan-European supply chains and sustained R&D 
partnerships. The two instruments are thus complementary by design, addressing different but 
mutually reinforcing stages of a company's defence innovation journey. 

It  is  designed  as  a  fast,  flexible  and  mission-driven  programme  capable  of  supporting  rapid 
innovation  cycles,  higher  risk-taking  and  swift  delivery  of  operationally  relevant  solutions 
under the  current Multiannual  Financial Framework (MFF)  until  similar  conditions  come to 
life in the 2028-2034 MFF.). In this sense, the AGILE Programme could also act as a testbed 
for some of the provisions enshrined in the proposal for the forthcoming ECF.  

• 

Consistency with existing policy provisions in the policy area 

This  Regulation  establishing  the  AGILE  Programme  is  fully  consistent  and  complementary 
with the progress that has been achieved so far to support defence innovation in the Union’s 
ongoing EU programmes and initiatives. 

Defence  innovation  is  a  strategic  priority  at  EU  level.  The  European  Defence  Industrial 
Strategy,  the  White  Paper  for  the  Future  of  European  Defence  –  Readiness  2030,  the 
Preserving Peace – Readiness Roadmap 2030, and the EU Defence Industry Transformation 
Roadmap  adopted  on  19  November  2025  all  underline  the  need  to  accelerate  innovation, 
shorten time-to-market,  and ensure the rapid uptake of disruptive technologies in support of 
EU defence readiness.  

The Defence Industry Transformation Roadmap calls for a fundamental shift in mindset and 
processes  across  the  European  defence  ecosystem  towards  greater  speed,  agility  and  risk-
taking,  and  identifies  the  need  to  develop  new,  more  responsive  approaches  to  support 
disruptive defence innovation and the emergence of new defence players. 

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This strategic direction reflects a rapidly evolving threat environment. New technologies are 
playing an increasingly important role in modern conflict, including technologies originating 
in  the  civilian  sector.  Russia’s  war  of  aggression  against  Ukraine  has  demonstrated  the 
operational  relevance,  low-cost  solutions  that  can  be  iterated  quickly,  including  software-
based  and  dual-use  technologies,  and  has  underscored  the  importance  of  shortening 
innovation  cycles.  The  ability  to  identify,  adapt  and  field  such  technologies  at  pace  has 
become a key operational requirement for armed forces. 

The EU has developed a substantial framework to support defence innovation in response to 
these challenges by successfully launching programmes and initiatives aimed at fostering the 
competitiveness and the innovation capacity of the EDTIB, including with reference to SMEs, 
including start-ups, mid-caps, research organisations and non-traditional defence actors. The 
European Defence Fund (EDF) is the Union's flagship programme for collaborative defence 
research and development, providing significant support across the full R&D cycle, including 
with  references  to  disruptive  technologies.  In  particular,  within  the  EDF,  the  EU  Defence 
Innovation  Scheme  (EUDIS),  representing  approximately  20%  of  the  EDF's  annual  budget, 
provides  specific  dedicated  support  to  non-traditional  defence  actors,  including  startups, 
SMEs and other innovative companies and organisations.  

Building  on  this,  the  Commission  has  taken  further  steps  to  increase  the  speed  and 
accessibility of EU defence innovation support. The mini omnibus Regulation5 to incentivise 
defence-related  investments  in  the  EU  budget  extended  the  EIC  Accelerator’s  scope  to 
innovations  with  dual-use  potential  and  the  EIC  STEP  Scale-Up  Scheme,  both  within  the 
Horizon Europe Framework Programme for research and innovation, to support innovation in 
critical  defence  technologies.  This  is  currently  the  only  EU  instrument  able  to  support 
innovative defence companies with direct equity investments, thereby creating significant new 
pathways for them to access EU support.  

Both  the  Defence  Readiness  Omnibus6  and  the  mini  omnibus  Regulation  introduced 
procedural  simplifications  for  the  EDF's  SME  and  disruptive  technology  calls,  reducing 
administrative  burden  and  shortening  evaluation  timelines  for  these  categories.  These 
measures  represent  meaningful  progress  towards  more  agile  and  responsive  EU  support  for 
defence innovation.  

Together,  these  instruments  have  established  a  strong  foundation  for  supporting  European 
defence  innovation.  However,  structural  gaps  remain  that  existing  instruments  are  not 
designed to fully address. The baseline EDF's consortia requirements reflect its collaborative, 
system-level  focus,  contributing  to  cross-border  projects  and  creation  of  new  EU  supply 
chains.  The  EIC  Accelerator,  which  provides  grants  and  equity  support  to  individual 
companies, has seen its scope expanded to cover dual-use innovation; however, its remit does 
not  extend  to  purely  defence-oriented  applications.  Moreover,  support  to  defence  under  the 
EIC is currently limited to equity financing under the STEP Scale-Up Scheme, leaving a gap 
for other types of EU support targeted at defence-specific development, including grants.  

AGILE  is  therefore  designed  in  complementarity  and  consistency  with  the  progresses  and 
results  obtained  by  the  EU  programmes  and  initiatives  in  the  sector.  It  will  target  single 
entities  (in  particular  SMEs,  including  innovative  startups  and  scaleups)  and  structured  to 
significantly reduce time-to-award. The programme thus occupies a complementary position 
within  the  broader  EU  defence  innovation  support  landscape,  supporting  the  EDTIB,  by 

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Regulation - EU - 2025/2653 - EN - EUR-Lex 
Defence Readiness Omnibus - Defence Industry and Space 

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focusing primarily on SMEs, including start-ups, and the overall defence readiness of the EU 
and its Member States.  

• 

Consistency with other Union policies 

The  Regulation  is  fully  consistent  with,  and  contributes  to,  a  broad  range  of  Union  policy 
objectives  and  strategic  priorities,  notably  security  and  defence,  competitiveness  and 
innovation, and simplification. 

The  EU  Strategic  Agenda  2024-2029  places  security  and  defence  at  the  centre  of  the  EU’s 
political priorities, committing to reduce strategic dependencies, scale up defence capacities, 
and  advance  the  building  of  a  European  Defence  Union.  The  Political  Guidelines  for  the 
European  Commission  2024-2029  reinforce  this  direction.  The  proposed  Regulation 
contributes directly to these objectives. 

The AGILE Programme is also  consistent with the Joint Communication of 26 March 2025 
on  the  European  Preparedness  Union  Strategy.  This  calls  for  enhanced  civil-military 
cooperation, with improved interaction between civilian and military actors. This approach is 
crucial to this Regulation, which also aims to foster synergies with civilian technologies. The 
AGILE  Programme  will  have  a  strong  emphasis  on  leveraging  civilian  technologies  for 
defence, enhancing synergies between defence and civilian research and innovation. 

The proposed Regulation is also in line with  EU’s policy priorities on competitiveness. The 
Competitiveness  Compass,  adopted  in  February  2025  and  building  on  the  Draghi  Report, 
identifies  closing  the  innovation  gap  and  translating  research  into  market-ready,  scalable 
products as one of the EU’s most urgent structural priorities, with particular emphasis on deep 
tech, dual-use technologies, and sectors where European sovereignty is at stake.  

The Regulation contributes to this objective by accelerating the cycle between innovation and 
delivery  in  the  defence  sector  and  by  providing  targeted  support  to  new  defence  players 
(particularly  SMEs,  including  innovative  startups  and  scaleups)  that  are  increasingly  the 
primary  drivers  of  disruptive  technological  development  in  Europe,  therefore  directly 
supporting  the  Union's  goal  of  strengthening  its  technological  sovereignty  and  reducing 
strategic dependencies in critical sectors. 

The Political Guidelines for the European Commission 2024-2029 identify simplification as a 
key,  cross-cutting  political  priority.  This  is  of  particular  importance  for  the  non-traditional 
defence  actors  targeted  by  the  AGILE  Programme,  which  often  possess  highly  relevant 
technological capabilities but lack the resources to engage with complex and lengthy funding 
processes. 

The  Regulation  proposal  is  also  in  line  with  the  key,  cross-cutting  political  priority  of 
simplification under the objectives related to Europe’s sustainable prosperity, competitiveness 
and  innovation.  The  Competitiveness  Compass  and  subsequent  Omnibus  simplification 
packages give concrete expression to this commitment, calling for a significant reduction in 
administrative burden, particularly for SMEs, and for funding instruments that are accessible, 
fast  and  proportionate.  The  AGILE  Programme  complements  the  Defence  Readiness 
Omnibus, with the specific objectives of urgency and agility. 

The  Regulation  is  designed  in  full  alignment  with  these  objectives,  since  the  AGILE 
Programme  will  include  simplified  evaluation  and  award  procedures,  making  it  easier  for 

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recipients to access funding and support, reducing administrative burden and shortening time-
to-award. 

The proposed programme is also fully consistent with the Commission proposals for the next 
Multiannual Financial Framework, in particular the European Competitiveness Fund (ECF). It 
includes  provisions  such  as  the  inducement  intervention  or  the  possibility  to  use  a  more 
flexible and accessible  approach to identifying,  selecting and supporting  innovative projects 
and  ideas,  including  through  instrument-neutral  award  procedures.  Finally,  the  proposal  is 
without prejudice to the application EU competition rules.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  AGILE  Programme  it  is  based  on  Article  173  of  the  Treaty  on  the  Functioning  of  the 
European Union (TFEU) (competitiveness of the EU defence industry) 

• 

Subsidiarity (for non-exclusive competence)  

Member  States’  action  alone  cannot  sufficiently  address  the  rapidly  evolving  security  and 
defence  challenges  that  the  EU  faces  at  the  required  scale  and  speed.  Coordinated  action  at 
EU level is necessary to ensure credible deterrence and to maintain technological leadership 
in the field of defence.  

Existing  national  mechanisms  supporting  defence  innovation  vary  significantly  across 
Member States. Not all Member States have mechanisms to support rapid defence innovation, 
leaving  innovative  companies  in  some  countries  without  access  to  funding  opportunities. 
Where  such  mechanisms  exist,  they  tend  to  prioritise  domestic  ecosystems,  limiting  cross-
border  cooperation  and  reinforcing  national  silos.    This  fragmented  landscape  hampers  the 
emergence  of  EU-wide  innovation  pathways  and  prevents  innovative  solutions  from  being 
rapidly tested, scaled and deployed across the Union.  

In  this  context,  an  EU-level  programme  accessible  to  all  Member  States  is  necessary  to 
establish a consistent, inclusive approach to defence innovation. Such an EU-level programme 
would  directly  address  these  challenges.  It  would  be  accessible  to  entities  from  all  Member 
States  and  focus  on  developing  solutions  for  urgent  defence  needs  identified  and  shared  by 
several of them, thereby fostering cooperation and facilitating joint procurement.  

Moreover, it would support the enlargement of the EDTIB by enabling the emergence of new 
defence actors across the EU. At the same time, it would contribute to reducing reliance on 
third-country  defence  systems  and  solutions.  By  placing  a  specific  emphasis  on  the  swift 
deployment  of  defence  solutions,  including  through  iterative  testing  with  the  direct 
engagement  and  feedback  of  Member  States,  the  programme  would  also  enhance 
interoperability,  an  outcome  that  is  considerably  less  likely  to  be  achieved  through  purely 
nationally managed mechanisms.  

• 

Proportionality 

The measures set out in the AGILE Programme do not go beyond what is strictly necessary to 
achieve their objectives, are proportionate to the scale and urgency of the problems that have 
been identified to those objectives. 

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The Regulation establishing the programme aims to create a fast, flexible and mission-driven 
EU instrument  to  accelerate disruptive defence innovation and rapidly deliver solutions  that 
respond to urgent defence and security needs identified by Member States.  It will serve to test 
innovative  approaches  and  gather  operational  lessons  for  the  next  MFF.  To  achieve  this 
objective, the proposed measures are carefully calibrated to be proportionate to the needs of 
the Regulation. 

The  Regulation  follows  a  targeted  and  narrow  approach  in  time,  scope  and  budget.  The 
impact  of  the  programme  will  be  primarily  limited  to  a  targeted  group  of  defence  industry 
stakeholders,  with  particular  focus  on  innovative  SME’s,  including  innovative  startups  and 
scaleups. This targeted approach minimises the impact on the civilian sector. Furthermore, the 
Programme  would  create  opportunities  for  the  civilian  sector  to  contribute  to  enhancing 
defence  innovation  across  the  EU,  strengthening  synergies  and  fostering  a  collaborative 
environment.  

• 

Choice of the instrument 

The Commission proposes a Regulation of the European Parliament and of the Council. This 
is the most suitable legal instrument as only a Regulation, with its uniform application, nature 
and direct applicability, can provide the necessary degree of uniformity needed to accelerate 
disruptive  defence  innovation  and  rapidly  deliver  solutions  that  respond  to  EU’s  Member 
States urgent defence needs.  

3. 

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RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

The  Commission  published  a  Call  for  Evidence  in  the  Have  Your  Say  portal  on  17th 
February, which was open for four weeks. The Call for Evidence received 6 responses from a 
range  of  stakeholders,  including  EU  citizens  (4  responses)  and  companies/businesses  (2 
responses),  with  respondents  coming  from  Belgium,  Italy,  Slovakia,  Spain,  and  Germany. 
Submissions covered a broad range of topics, including support and specific proposals for the 
design  of  more  agile  and  startup-friendly  funding  mechanisms,  recommendations  on 
transparency  and  anti-profiteering  frameworks  for  defence  procurement,  and  suggestions  on 
how  to  design  and  implement  the  programme  to  better  integrate  innovative  SMEs  and  new 
entrants. 

Additionally, the Regulation builds on an extensive consultation process carried out with all 
the relevant stakeholders, including Member States and industry, both established players and 
new entrants,  for the preparation of the EU Defence  Industry Transformation Roadmap and 
other defence-related initiatives. The consultation process has included events and exchanges, 
such as Roundtables with New Defence players and defence industry, respectively in June and 
November  2025,  a  Strategic  Dialogue  with  Industry  in  May  2025  and  consultations  with 
EUDIS Business Accelerator startups and scaleups. 

The AGILE Instrument also builds on the stakeholder's feedback included in the EDF Interim 
Evaluation  Report,  published  in  June  2025,  which  examines  the  Fund’s  first  years  of 
implementation.  It  highlighted  several  key  issues,  particularly  the  need  for  reducing  the 
administrative  burdens  for  applicants,  especially  with  reference  to  SMEs,  and  the  time-to-
grant. 

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• 

Collection and use of expertise 

The Commission has relied on the input received from stakeholders in response to the Call for 
Evidence published on 17 February 2026. 

In addition, the Commission drew on input gathered during a dedicated discussion with think 
tanks  and  experts,  aimed  at  collecting  insights  and  exchanging  ideas  to  support  the 
preparation  of  the  EU  Defence  Transformation  Roadmap.  This  discussion  brought  together 
experts  from  across  the  EU  covering  a  range  of  domains,  including  defence,  innovation, 
geopolitics, and disruptive technologies.  

• 

Impact assessment 

An impact assessment has not been carried out for this initiative.  

The  initiative  is  highly  targeted  and  proportionate  in  nature.  It  is  designed  as  a  pilot 
programme to be implemented exclusively within the current MFF. The primary objective is 
to  test  innovative  approaches  in  view  of  the  next  MFF  period.  Conducting  a  full  impact 
assessment  for  such  a  time-limited  pilot  would  be  disproportionate  and  create  delays 
incompatible with its fundamental purpose. 

Additionally, the initiative is limited in terms of scope and impact. It has a limited budget of 
EUR 115 million,  sourced entirely  from  internal  reallocations within the current  EU budget 
allocated  to  programmes  related  to  defence  industry  and  space.  It  creates  no  additional 
financial burden on Member States or the EU budget, and its impact is confined to a specific 
segment  of  defence  stakeholders,  primarily  innovative  SMEs,  including  innovative  startups 
and scaleups.  

The  objectives  of  the  Programme  focus  on  needs  identified  through  extensive  stakeholder 
engagement  and  analysis.  The  need  for  faster  support  mechanisms,  reduced  administrative 
burden, and greater risk tolerance has been consistently documented in policy evaluations and 
stakeholder consultations, providing a solid evidence base for the proposed approach.  

• 

Regulatory fitness and simplification 

The Regulation is not expected to increase the administrative burden.  

Fundamental rights 

• 

N/A 

4. 

BUDGETARY IMPLICATIONS 

The  initiative  has  a  budget  of  EUR  115  million,  financed  entirely  through  internal 
reallocations within the current MFF. The resources will be drawn from existing programmes 
related  to  defence  industry  and  space,  specifically  the  European  Defence  Fund  (EDF),  the 
European  Defence  Industry  Programme  (EDIP)  and  the  EU  Space  Programme.    This 
budgetary  envelope  aims  to  strike  a  balance  between  minimising  the  impact  on  existing 
programmes  and  ensuring  that  the  resources  can  be  fully  absorbed  within  the  one-year 
timeframe  for  implementation  to  drive  defence  innovation.  It  is  calibrated  to  meet  the 
observed  financing  needs  of  SMEs,  including  innovative  startups  and  scaleups,  developing 
emerging  and  disruptive  products  and  technologies  for  defence,  enabling  the  programme  to 
achieve a tangible impact and support the growth these companies in the defence sector and 
the uptake of innovative defence solutions by Member States.  

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These reallocations will not have a negative impact on the objectives and implementation of 
existing programmes, ensuring that ongoing commitments and planned activities under these 
programmes  can  continue  as  planned.  The  reallocation  has  been  designed  to  maintain  the 
effectiveness of current  programmes while enabling this targeted initiative to address urgent 
defence innovation needs. Union support provided under the Programme, in most cases, will 
benefit  the  same  entities  that  are  targeted  by  other  defence  and  space  programmes,  but  in  a 
more  targeted  and  faster  manner.  This  is  particularly  relevant  for  EDF,  which  will  see  its 
objectives  complemented  by  this  initiative..  Moreover,  for  EDIP,  the  budget  reallocation 
comes  from  the  part  of  the  budget  initially  allocated  to  support  actions,  mostly  targeting 
SMEs,  so  channelling  this  funding  through  AGILE  will  ensure  an  effective  and  impactful 
Union support to the same group of target beneficiaries. Finally, the programme's support for 
emerging  and disruptive defence solutions  for defence in  the space domain  will also  have a 
positive  spill-over  effect  on  the  EU  Space  Programme  and  the  Secure  Connectivity 
Programme, ultimately contributing to the Union's space policy objectives.  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The implementation of AGILE will be closely monitored throughout 2027, with a focus on its 
ability  to  deliver  rapid,  high-impact  defence  innovation.  Monitoring  will  track  key  aspects 
such  as  speed  of  decision-making  and  time-to-grant,  participation  of  new  defence  players, 
including SMEs, including innovative startups and scaleups, involvement of associated third 
countries’ entities, in particular Ukrainian ones, and the transition from innovation to testing 
or deployment.   

The Commission will carry out a targeted evaluation at the end of the implementation period 
to  assess  its  effectiveness,  efficiency  and  EU  added  value.  The  results  and  lessons  learned  
could  inform  thinking  on  future  EU  defence  innovation  programmes  whithin  the  context  of 
the  the  Commission’s  proposals  for  the  Multiannual  Financial  Framework  from  2028 
onwards,  

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2026/0078 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on establishing the Programme for agile and rapid defence innovation (AGILE) 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 173(3), thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee7,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

The  return  of  high-intensity  warfare  brought  about  by  Russia’s  unprovoked  and 
unjustified  war  of  aggression  against  Ukraine  constitutes  an  existential  challenge  for 
the Union, which requires a significant and lasting increase in the capacity of Member 
States to reinforce their defence capabilities and readiness. The long-term deterioration 
of  regional  and  global  security  requires  an  in-depth  transformation  of  the  European 
Defence  Technological  and  Industrial  Base  (EDTIB)  to  ensure  its  ability  to  deliver 
innovative  defence  products  required  by  Member  States’  armed  forces  in  scale  and 
time, in particular in times of war. 

The  Member  States,  in  the  Heads  of  State  or  Government  of  the  Union  meeting  in 
Versailles on 11 March 2022, committed to bolster European defence capabilities and 
to  increase  their  defence  expenditure,  step  up  cooperation  through  joint  projects  and 
common  procurement  of  defence  capabilities,  close  shortfalls,  boost  innovation  and 
strengthen and develop the European defence industry. 

Innovation is  critical  to  achieve  and support Europe’s defence readiness, particularly 
in today’s era of intensifying threats, systemic competition, and geopolitical rivalries. 
The  proliferation  of  threats  has  sparked  an  international  arms  race  and  a  global 
technological competition, with emerging and disruptive technologies in fields such as 
AI,  quantum,  robotics,  cyber  and  space,  playing  a  decisive  role  in  maintaining 
strategic  advantage  and  ensuring  credible  deterrence.  Achieving  this  requires  rapid 
testing,  validation  and  integration  of  these  technologies  into  defence  capabilities,  as 
well as continuous engagement with the technology and innovation ecosystem.  

(4) 

The war in Ukraine shows how rapidly defence technologies are evolving. Innovation 
cycles are becoming faster, which means defence products must adapt rapidly. These 

7 

OJ C , , p. . 

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changes are also reshaping battlefield dynamics.  SMEs, including innovative startups 
and  scaleups,  often  with  an  important  civilian  background,  play  a  key  role  in 
supporting Ukraine’s defence and armed forces. These new defence actors bring faster 
innovation,  greater flexibility, cost-efficient  solutions,  and new  operational  ideas and 
processes.  As  a  result,  they  are  becoming  a  major  driving  force  in  transforming  the 
EDTIB.  The  joint  White  Paper  European  Defence  –  Readiness  2030  highlights  the 
importance of a strong technological innovation ecosystem. This is essential to ensure 
that  Europe’s  defence  industry  can  keep  pace  with  the  rapidly  changing  nature  of 
modern warfare.  

To  provide  comprehensive  support  for  the  collaborative  research  and  development 
(R&D) of defence products and technologies, the Union has established the European 
Defence  Fund  (EDF).  With  a  budget  of  EUR  7.3  billion  under  the  2021-2027  MFF, 
the  EDF  aims  to  promote  the  competitiveness,  efficiency  and  innovation  capacity  of 
the EDTIB, as well as reducing fragmentation within the EDTIB. As one of the largest 
defence R&D programmes in Europe, the EDF supports the collaborative development 
of  the  most  complex  defence  systems  that  no  Member  State  could  afford  to  develop 
alone.  It  also  supports  the  development  of  new  European  defence  supply  chains.  As 
part  of  the  EDF,  the  EU  Defence  Innovation  Scheme  (EUDIS)  was  established  in 
2022, to provide targeted support to non-traditional defence actors, particularly SMEs 
and  start-ups,  and  to  lower  barriers  to  market  entry.  The  EUDIS  involves  several 
initiatives,  such  as  targeted  R&D  calls,  business  acceleration  and  matchmaking 
services,  hackathons,  and  equity  financing,  accounting  for  around  20%  of  the  EDF 
budget  committed  each  year.  These  actions  have  significantly  contributed  to 
expanding the EDTIB and fostering defence innovation capacity across the Union. In 
addition,  the  EDF  BraveTech  EU  initiative  provides  further  support  for  defence 
innovators, offering them gradual access to funding alongside technology testing and 
iterative  development  cycles.  It  focuses  on  developing  solutions  based  on  defence 
needs  identified  by  Ukraine,  giving  Ukrainian  industry  a  direct  opportunity  to 
collaborate with EU defence innovators. 
Regulations  (EU)  2021/6958  and  (EU)  2024/7959    enable  the  European  Innovation 
Council (EIC) Accelerator to support dual-use technologies and stimulate investment 
in defence technologies under the Strategic Technologies for Europe Platform (STEP). 
In  addition,  this  Regulation  allows  for  EIC  direct  support  to  defence  technologies  in 
the form of direct equity financing.   
Regulation (EU) 2025/265310 has also introduced targeted changes to Regulation (EU) 
2021/69711,  particularly  with  regards  to  the  actions  on  disruptive  technology  for 

(5) 

(6) 

(7) 

8 
Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing 
Horizon  Europe  –  the  Framework  Programme  for  Research  and  Innovation,  laying  down  its  rules  for 
participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 (OJ L 
170, 12.5.2021, pp. 1–68, ELI: http://data.europa.eu/eli/reg/2021/695/oj). 
9 
Regulation  (EU)  2024/795  of  the  European  Parliament  and  of  the  Council  of  29  February  2024 
establishing  the  Strategic  Technologies for  Europe  Platform  (STEP),  and  amending  Directive  2003/87/EC  and 
Regulations (EU) 2021/1058, (EU) 2021/1056, (EU) 2021/1057, (EU) No 1303/2013, (EU) No 223/2014, (EU) 
2021/1060,  (EU)  2021/523,  (EU)  2021/695,  (EU)  2021/697  and  (EU)  2021/241  (OJ  L,  2024/795,  29.2.2024, 
ELI: http://data.europa.eu/eli/reg/2024/795/oj). 
10 
Regulation  (EU)  2025/2653  of  the  European  Parliament  and  of  the  Council  of  19  December  2025 
amending Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153 and (EU) 2024/795, as 
regards incentivising defence-related investment in the EU budget to implement the ReArm Europe Plan (OJ L, 
2025/2653, 22.12.2025, ELI: http://data.europa.eu/eli/reg/2025/2653/oj). 

EN 

10 

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(8) 

(9) 

defence.  Specifically,  those  changes  provide  the  possibility  to  define  in  the  work 
programme the most appropriate forms of selection and award criteria and procedures 
for each call for project proposals. In addition, Regulation (EU) [reference of defence 
readiness omnibus], has introduced further amendments to Regulation (EU) 2021/697, 
expanding  this  possibility  to  cover  all  calls  launched  under  the  European  Defence 
Fund, particularly those aimed at SMEs.  

In  addition  to  those  substantial  efforts,  a  new  programme  should  be  established  (the 
AGILE Programme, ‘the Programme’) to provide rapid, agile and targeted support to 
SMEs,  including  innovative  start-ups  and  scaleups  insofar  as  they  meet  the 
requirements  of  the  SME  definition,  to  develop  innovative  defence  solutions.  The 
programme  should  focus  on  supporting  the  development  of  emerging  and  disruptive 
products  and  technologies  for  defence  up  to  a  high  technology  readiness  level, 
including the adaptation of civil technologies for defence  applications, to address the 
most  urgent  capability  development  needs  of  Members  States  and  associated  third 
countries, with a particular focus on low cost defence solutions. 

In  order  to  ensure  the  efficient  implementation  of  the  EU  budget,  the  AGILE 
Programme  will  be  fully  complementary  to  existing  EU  instruments  supporting 
defence innovation. EUDIS supports non-traditional defence actors within the broader 
EDF  framework,  including  R&D  grants  for  consortia  and  other  support  actions 
targeting single entities (Business Accelerator, Matchmaking). HEDI, managed by the 
European  Defence  Agency  (EDA),  fosters  cooperation  among  Member  States  on 
defence innovation. The EIC is a key EU innovation programme to identify, develop 
and  scale  up  breakthrough  technologies  and  disruptive  innovation.  Following  the 
adoption of Regulation (EU) 2025/2653, the EIC STEP Scale Up Scheme will provide 
direct  equity  financing  to  help  defence  and  dual  use  companies  to  scale  up  their 
innovations. AGILE fills a distinct gap, as it will offer streamlined, direct support to 
individual SMEs,  including innovative startups  and scaleups,  for the development  of 
innovative  solutions  and  its  uptake  by  Member  States  and  industry,  with  very  short 
award  timelines  and  a  clear  link  to  the  capability  needs  of  Member  States.  It  should 
therefore enable the Union to pilot new approaches to supporting defence innovation, 
while  complementing  existing  EU  instruments  across  various  maturity  levels, 
consortium  sizes,  timeframes  and  technological  domains.  The  rapid  evolution  of 
defence threats requires a shift towards a more flexible approach to enable innovative 
companies (particularly SMEs, including innovative startups and scaleups) to respond 
quickly to identified capability challenges. The Programme should therefore prioritise 
challenge-based  innovation  activities  with  rapid  iteration  cycles,  directly  linked  to 
Member States' priority operational requirements.  

(10) 

In  particular,  the  Programme  should  seek  to  significantly  accelerate  the  innovation 
cycles of defence products and technologies with high disruptive potential, expected to 
be fully exploitable within the next 1 to 3 years. It should offer innovators the greatest 
possible  flexibility  to  propose  novel  solutions,  including  from  single  legal  entities, 
while allowing for subcontracting of specific tasks or collaboration with other entities 
during implementation.  

(11)  However,  the  persistent  structural  challenge  for  European  defence  SMEs,  including 
innovative  startups  and  scaleups,  is  the  gap  between  successful  innovation  and 

11 
Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing 
the  European  Defence  Fund  and  repealing  Regulation  (EU)  2018/1092  (OJ  L  170,  12.5.2021,  pp.  149–177, 
ELI: http://data.europa.eu/eli/reg/2021/697/oj). 

EN 

11 

  EN 

 
 
operational  deployment  by  the  armed  forces  of  Member  States  and  associated  third 
countries.  To  address  that  gap,  the  Programme  should  align  with  the  genuine  and 
prioritised  defence  needs  of  Member  States  and  associated  third  countries.  By  doing 
so,  it  should  support  the  uptake  of  innovation  solutions  by  their  armed  forces  and 
defence  industry,  particularly  prime  contractors  and  first-tier  subcontractors.  The 
Programme  should  establish  a  fast-track  process  to  enable  the  Union  to  support  the 
testing and deployment of innovative support mechanisms that address the most urgent 
defence  readiness  requirements,  including  in  support  of  European  Readiness 
Flagships.  

(12)  To  this  end,  the  Programme  should  support  activities  involving  field  testing, 
experimentation and demonstrations. These activities should allow entities to validate 
innovative solutions in realistic operational  conditions, generating real-time feedback 
that can be used to refine and improve the solutions through an iterative process. The 
active  involvement  of  Member  States  is  crucial  at  every  stage  of  this  process,  from 
setting  up testing  requirements  to  assessing  demonstrated  capabilities.  This  will  help 
create  credible  demand  signals  and  facilitate  subsequent  procurement  decisions. 
Additionally, the Programme can support the uptake of new technologies and products 
by  aggregating  demand,  and  using  innovative  procurement  mechanisms,  such  as 
innovation  partnerships.  Shared  platforms  and  services  can  also  be  developed  to 
address the common operational needs of multiple end users. 

(13)  Space-based capabilities have become indispensable enablers of modern defence and 
security  operations,  providing  critical  functions  including  intelligence,  surveillance 
and  reconnaissance,  secure  communications,  positioning,  navigation  and  timing,  and 
early  warning.  Moreover,  the  increasing  reliance  of  armed  forces  on  space-based 
assets,  combined  with  the  growing  vulnerability  of  space  infrastructure  to  threats, 
make  the  resilience  and  responsiveness  of  the  European  space  sector  a  strategic 
priority.  Space  is  identified  in  the  White  Paper  for  European  Defence  –  Readiness 
2030 as a key strategic enabler within the priority capability areas established by the 
EU and its Member States, and the Defence Readiness Roadmap proposes a European 
Space  Shield  as  a  potential  flagship  initiative.  The  dual-use  nature  of  space 
technologies  and  services  means  that  innovation  in  the  space  sector  has  direct  and 
immediate implications  for defence capabilities, and that defence-driven demand can 
accelerate  the  development  and  commercialisation  of  European  space  technologies. 
The Programme should therefore support the development of innovative space-based 
and space-enabled defence capabilities, by including new entrants and non-traditional 
actors, to enhance the Union's strategic autonomy in space and strengthen the EDTIB. 
This  includes  contributing  to  the  development  of  a  future  Earth  Observation 
Governmental  Service  (EOGS)  with  autonomous,  resilient  and  defence-grade  earth 
observation  capabilities.  The  Programme  should  also  support  activities  in  the  space 
domain to accelerate the uptake of space-based defence capabilities by Member States, 
and,  by  the  EU,  in  line  with  the  Space  Programme,  the  Secure  Connectivity 
Programme  or  as  regards  the  activities  of  the  EU  Satellite  Centre  (SatCen),  while 
ensuring consistency with the relevant Union space-related initiatives.  

(14)  To ensure uniform conditions for implementing this Regulation, implementing powers 
should be conferred on the Commission for the adoption of work programmes. Those 
powers should be exercised in accordance with  Regulation (EU) No 182/201112 . To 

12 
Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying  down  the  rules  and  general  principles  concerning  mechanisms  for  control  by  Member  States  of  the 
Commission’s exercise of implementing powers 

EN 

12 

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the  swift  adoption  of 

ensure 
the 
implementation  of  the  Programme  for  the  benefit  of  the  European  defence  SME 
ecosystem,  the  Commission  should  be  able  to  use  the  advisory  procedure  set  out  in 
Article 4 of the aforementioned Regulation. 

these  work  programmes  and,  ultimately, 

(15)  The  work  programme  should  establish  challenges,  defined  as  calls  for  proposals 
addressing  specific  defence  needs  identified  in  coordination  with  Member  States, 
based  on  a  structured  process  involving  Member  States  so  that  supported  projects 
respond to genuine and prioritised defence needs of Member States. For this purpose, 
the work programme may also draw on input from major industries and the EDA with 
a  view  to  addressing  specific,  mission-driven  capability  needs.  In  all  cases,  priority 
should be given to challenges that attract the broadest possible support from Member 
States, reflecting genuine common demand and  strategic alignment, and  contributing 
to the defence readiness of the EU as a whole. To cover the full range of innovation, 
the  Programme  should  also  include  calls  that  address  broader  defence  innovation 
objectives.  In  the  selection  of  projects  under  such  calls  and  challenges,  the 
Commission  should  ensure  that  the  Programme  contributes  to  strengthening  defence 
industrial  capacity  across  the  Union  as  a  whole and  to  addressing  urgent  and  lasting 
threats. 

(16)  The  Programme  aims  to  support  the  innovation  efforts  of  non-traditional  defence 
players,  and  primarily  SMEs,  including  innovative  start-ups  and  scaleups.  By 
providing targeted support, the Programme seeks to accelerate the maturation and fine-
tuning  of  their  disruptive  technologies  and  products,  and  bring  them  closer  to  the 
market, ultimately enhancing their competitiveness and growth. 

(17)  As  the  AGILE  Programme  aims  to  support  the  innovation  capacity  of  the  Union’s 
defence industry, only legal entities which are established in the  EU or in associated 
third countries  and are not  subject  to  control  by  non-associated third countries  or by 
non-associated  third-country  entities  should  be  eligible  for  support.  Additionally,  to 
protect the essential security and defence interests of the Union and its Member States, 
the infrastructure,  facilities, assets  and resources  of the recipients  and subcontractors 
involved in an action supported by the Programme should be located on the territory of 
a Member State or of an associated third country for the entire duration of an action, 
and the recipients should have their executive management structures in the EU or in 
an associated third country. To safeguard these essential security and defence interests, 
those eligibility criteria should also apply to funding provided through procurement. 

(18)  The  interim  evaluation  of  the  European  Defence  Fund  (EDF)  has  shown  that  the 
administrative  burden  and  time  required  to  provide  guarantees  when  an  EU-
established  recipient  is  controlled  by  a  non-associated  third  country  or  entity  are 
incompatible  with  the  speed  and  flexibility  necessary  for  effective  programme 
implementation.  To  address  this  challenge  and  facilitate  the  swift  implementation  of 
the Programme, derogations from the principle that recipients must not be controlled 
by entities established outside the EU or associated countries should not be permitted. 
Practice from previous defence industry programmes also indicates that the provision 
of  guarantees  results  in  additional  procedural  complexity  and  longer  evaluation 
periods, while removing this exception is unlikely to significantly affect the number of 
eligible entities. 

(19)  To  ensure  Member  States’  armed  forces  can  benefit  from  cutting-edge  technologies 
and innovation, the Programme should be able to provide incentives to attract SMEs, 
including  innovative  start-ups and scaleups,  established outside the EU or associated 

EN 

13 

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third countries but have the potential to contribute significantly to the achievement of 
the  Programme’s  objectives.   To  this  end,  the  work  programme  should  be  able  to 
identify  certain  award  procedures  under  which  such  SMEs  may  participate  in  the 
AGILE programme even if they do not yet meet the eligibility requirementsrelating to 
their establishment or the establishment of their executive management structure in the 
EU  or  an  associated  third  country  (inducement  intervention).  Under  this  approach, 
recipients  would  be  granted  a  temporary  and  conditional  waiver  of  such  eligibility 
requirements, which they would have to comply with within the timeline specified in 
the  legal  commitment  to  receive  Union  support.  The  financial  interests  of  the  Union 
should  be  duly  protected,  and  payments  should  only  be  made  once  the  eligibility 
requirements have been fulfilled by the end of the waiver period. 

(20)  To  enable  the  inducement  intervention  to  achieve  its  intended  purpose,  it  should  be 
possible to derogate from the eligibility requirement that recipients be established and 
have their executive management structure in the EU or an associated third country to 
receive  Union  support,  provided  such  support  specifically  aims  to  facilitate 
compliance  with  those  eligibility  requirements,  including  by  covering   the  costs 
associated  with  the  relocation  of  the  company  or  the  establishment  of  its  executive 
management structure within the EU or an associated third country.  

(21)  Given  the  need  for  the  actions  supported  under  the  AGILE  Programme  to  be 
implemented within a short timeframe, while minimising the administrative burden on 
applicants,  financing  not  linked  to  cost,  or  simplified  cost  options,  including  single 
lump sums, should be used where the Union support is provided in the form of a grant. 
Union support should only be provided in the form of reimbursement of actual eligible 
costs where the objectives of a specific action cannot be achieved in any other way. 

(22)  The functioning of the defence industry sector does not follow the conventional rules 
and  business  models  that  govern  more  traditional  markets.  Demand  comes  almost 
exclusively from national governments, which also control all acquisition of defence-
related products and technologies, including exports. Therefore, the defence industry, 
in  particular  small  and  non-traditional  defence  innovators,  does  not  engage  in 
substantial  self-funded  innovation  projects,  and  Member  States  and  associated  third 
countries  often  fully  fund  all  related  costs.  Furthermore,  these  actors  face  persistent 
barriers in accessing finance, including co-financing, in particular private finance for 
investments, due to the risks market actors associate with such investments. Therefore, 
leveraging  public  investment  for  the  Union  defence  sector  is  vital,  given  the 
compelling need to boost investment in defence innovation. As these measures would 
not otherwise be undertaken, it appears justified that Union financial support can cover 
up to 100 % of the eligible costs for actions eligible under the AGILE Programme.  

(23)  To  further  simplify  and  accelerate  the  submission  and  evaluation  process,  the  Union 
support  should  be  provided  through  a  dedicated  evaluation  procedure,  involving 
certain checks after the award decision has been made. Applicants should be invited to 
submit proposals together with a short summary.  This summary should be evaluated 
before the  proposals are evaluated in full against the relevant award criteria set out in 
the work programme.  This approach is intended to reduce the administrative burden 
on applicants and provide financial certainty as quickly as possible, while accepting a 
reasonable level of financial or legal risk to the Union, proportionate to the objectives 
pursued. The financial interest of the Union should be duly protected, and no financing 
should be provided until the full evaluation has been completed. 

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(24)  For the same purpose, it should be possible to derogate from certain obligations under 
Regulation (EU, Euratom) 2024/2509 concerning the content of grant applications, the 
selection criteria, and the evaluation procedure. This would allow the award decision 
to  be  adopted  and  the  grant  agreement  to  be  signed  on  the  basis  of  a  preliminary 
assessment  of  eligibility  and  selection  criteria,  relying  in  particular  on  applicants’ 
declarations  on  honour,  including  with  regard  to  control  requirements.  The 
Commission  should  adopt  award  decisions  without  delay  and  complete  the  final 
evaluation of the relevant criteria within four months of the application deadline. The 
financial interests of the Union should be duly protected, and payments should only be 
provided once the final evaluation has been completed.    

(25)  As an alternative to this accelerated evaluation procedure, and in order for the Union 
to  support innovation solution  without initial artificial narrowing or limitation  linked 
to the specific form taken by the Union support, the AGILE Programme should allow 
for  a  more  flexible  and  accessible  approach  to  identifying,  selecting  and  supporting 
innovative projects and ideas, including through instrument-neutral award procedures. 
Under such an approach, ideas should be assessed and selected based on their merit in 
contribution  to  the  objectives  of  the  AGILE  Programme.  The  most  appropriate  and 
effective  budget  implementation  instrument  under  the  Programme,  whether  a  grant, 
procurement  or  another  form  of  support,  should  be  determined  only  after  selection, 
based on the specific characteristics, requirements and merits of the individual project. 

(26)  To  remain  attractive  to  a  broader  range  of  potential  applicants  and  to  address  an 
existing gap in the defence innovation cycle, it is necessary and proportionate to allow 
for costs incurred before the grant application is submitted to be eligible for funding, 
as provided for in Article 196(2) of Regulation (EU, Euratom) 2024/2509. The AGILE 
Programme  focuses  on  late-stage  development  activities  that  bridge  the  critical  gap 
between  commercialisation  and  procurement,  bringing  emerging  and  disruptive 
products  and  technologies  for  defence  closer  to  market  readiness  and  operational 
deployment.  Innovative  companies,  in  particular  SMEs,  often  initiate  and  self-fund 
development  work  before  formal  funding  opportunities  become  available.  This  will 
enable  the  Programme  to  support  critical  innovation  actions  that  started  up  to  three 
months  before  the  closing  of  the  call  for  proposals  to  receive  EU  support  and 
accelerate their completion, ensuring the timely delivery of results addressing the most 
urgent  challenges  faced  by  the  armed  forces  of  Members  States  and  associated  third 
countries. 

(27)  Directive 2009/81/EC of the European Parliament and of the Council13provides for a 
specific exclusion from the obligations it provides for contracts awarded under certain 
cooperative programmes based on research and development. Following the adoption 
of  Directive  XXX  [Omnibus  directive  2025/0177  (COD)],  the  defence  and  security 
procurement directive makes clear that research and development project managed by 
EU institutions or bodies and implemented in accordance with Union rules and funded 
from the Union budget,  constitutes a cooperative programme conducted jointly by at 
least  two  Member  States  and  can  be  continued  for  the  phases  after  the  research  and 
development  phase.  In  this  case,  contracts  awarded  under  the  follow-up  programme 

13 
Directive  2009/81/EC  of  the  European  Parliament  and  of  the  Council  of  13  July  2009  on  the 
coordination of procedures for the award of certain works contracts, supply contracts and service  contracts by 
contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 
2004/18/EC 

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may  also  be  excluded.  This  exemption  applies,  in  particular,  to  contracts  awarded 
within the framework of projects supported by the AGILE Programme. 

(28)  To ensure the security of classified information at the required level, it is essential to 
comply  with  the  minimum  standards  on  industrial  security  when  signing  classified 
funding  and  financing  agreements.    To  that  end,  and  in  accordance  with  applicable 
national  laws,  the  Member  States  and  associated  third  countries  on  the  territory  of 
which  the  recipients  are  established,  should  establish  a  security  framework  - 
comprising Project Security Instructions and a related Security Classification Guide – 
in  cases  where  the  implementation  of  the  AGILE  Programme  would  involve  or 
generate information that warrant a classification level. 

(29)  This Regulation should apply without prejudice to EU competition rules, in particular 
Articles 101 to 109 TFEU and the legal acts that give effect to those Articles. 

(30)  Given  the  urgent  need  to  support  crucial  investments  in  defence  capabilities  and 
particularly in defence innovation in the context of pressing geopolitical challenges it 
is  appropriate  to  provide  for  an  exception  to  the  eight-week  period  referred  to  in 
Article 4 of Protocol No 1 on the role of national Parliaments in the European Union, 
annexed to the TEU, to the Treaty on the Functioning of the European Union and to 
the Treaty establishing the European Atomic Energy Community.  On the same basis, 
this Regulation should enter into force on the day following that of its publication in 
the Official Journal of the European Union.  

(31) 

It  is  appropriate  to  lay  down  an  indicative  financial  envelope  for  the  AGILE 
Programme. 

(32)  Regulation  (EU,  Euratom)  2024/2509  14  applies  to  the  Programme.  It  lays  down  the 
rules on the establishment and the implementation of the general budget of the Union, 
including  the  rules  on  grants,  prizes,  non-financial  donations,  procurement,  indirect 
management, financial assistance, financial instruments and budgetary guarantees. 

(33) 

In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) 
No  883/2013  of  the  European  Parliament  and  of  the  Council15,  Council  Regulation 
(EC,  Euratom)  No  2988/9516,  Council  Regulation  (Euratom,  EC)  No  2185/9617  and 
Council  Regulation  (EU)  2017/193918,  the  financial  interests  of  the  Union  are  to  be 
protected  through  proportionate  measures,  including  the  prevention,  detection, 
correction  and  investigation  of  irregularities  and  fraud,  the  recovery  of  funds  lost, 

14 

15 

16 

17 

18 

No 

(Euratom) 

1074/1999 

Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 
2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, 
ELI: http://data.europa.eu/eli/reg/2024/2509/oj). 
Regulation  (EU,  Euratom)  No  883/2013  of  the  European  Parliament  and  of  the  Council  of  11 
September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and 
repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council 
1., 
Regulation 
ELI: http://data.europa.eu/eli/reg/2013/883/oj) 
Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European 
Communities 
1, 
(OJ 
financial 
ELI: http://data.europa.eu/eli/reg/1995/2988/oj). 
Council  Regulation  (Euratom,  EC)  No  2185/96 of  11  November  1996  concerning on-the-spot  checks 
and inspections carried out by the Commission in order to protect the European Communities' financial 
interests 
2, 
ELI: http://data.europa.eu/eli/reg/1996/2185/oj) 
Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 
establishment  of  the  European  Public  Prosecutor’s  Office  (‘the  EPPO’)  (OJ  L  283,  31.10.2017,  p.  1, 
ELI: http://data.europa.eu/eli/reg/2017/1939/oj). 

292,15.11.96, 

irregularities 

18.9.2013, 

23.12.95, 

interests 

against 

fraud 

other 

248, 

312, 

and 

(OJ 

(OJ 

p. 

p. 

p. 

L 

L 

L 

EN 

16 

  EN 

 
 
(34) 

wrongly  paid  or  incorrectly  used  and,  where  appropriate,  the  imposition  of 
administrative penalties.  

In  particular,  in  accordance  with  Regulations  (EU,  Euratom)  No  883/2013  and 
(Euratom,  EC)  No  2185/96,  the  European  Anti-Fraud  Office  (OLAF)  may  carry  out 
investigations,  including  on-the-spot  checks  and  inspections,  with  a  view  to 
establishing  whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity 
affecting  the  financial  interests  of  the  Union.  In  accordance  with  Regulation  (EU) 
2017/1939,  the  European  Public  Prosecutor's  Office  (EPPO)  may  investigate  and 
prosecute fraud and other illegal activities affecting the financial interests of the Union 
as provided for in Directive (EU) 2017/137119.  

(35) 

In  accordance  with  Regulation  (EU,  Euratom)  2024/2509,  any  person  or  entity 
receiving Union funds is to fully cooperate in the protection of the Union’s financial 
interests,  to  grant  the  necessary  rights  and  access  to  the  Commission,  OLAF,  EPPO 
and  the  European  Court  of  Auditors  and  to  ensure  that  any  third  parties  involved  in 
implementing  Union funds grant equivalent rights. 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Subject matter 

This  Regulation  establishes  the  Programme  for  agile  and  rapid  defence  innovation  (AGILE 
Programme)  for  the  period  from  1  January  2027  to  31  December  2027,  and  lays  down  its 
objectives and budget, the forms of funding under the Programme and the rules for providing 
such funding. 

Article 2 

Definitions 

For the purposes of this Regulation, the following definitions apply: 

(1) 

(2) 

(3) 

(4) 

19 

‘legal  entity’  means  a  legal  person  created  and  recognised  as  such  under  Union, 
national  or  international  law,  including  Structures  for  European  Armament 
Programme  (SEAP),  established  in  accordance  with  Regulation  (EU)  2025/2643, 
which has legal personality and the capacity to act in its own name, exercise rights 
and be subject  to  obligations,  or an entity  which does not  have legal  personality  as 
referred to in Article 200(2), point (c), of Regulation (EU, Euratom) No 2024/2509;  

‘control’ means the ability to exercise decisive influence over a legal entity directly, 
or indirectly through one or more intermediate legal entities;  

‘defence  product’  means  goods,  services  and  works  that  fall  within  the  scope  of 
Article 2 of Directive 2009/81/EC;  

'emerging and disruptive product or technology for defence’ means a defence product 
or  technology  that  brings  about  a  radical  change,  including  a  paradigm  shift  in  the 
concept  and  conduct  of  defence  affairs,  including  by  replacing  existing  defence 
technologies or rendering them obsolete, and that is expected to be fully exploitable 
at the end of the action; 

Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight 
against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29, 
ELI: http://data.europa.eu/eli/dir/2017/1371/oj). 

EN 

17 

  EN 

 
 
(5) 

(6) 

(7) 

1. 

‘small  and  medium-sized  enterprises’  or  ‘SMEs’  means  small  and  medium-sized 
enterprises  as  defined  in  Article  2  of  the  Annex  to  Commission  Recommendation 
2003/361/EC. 

‘background  information’  means  any  information  necessary  for,  or  useful  to  the 
implementation of the Programme, generated before or outside the framework of the 
Action and provided to and used for the purposes of the Action. 

‘foreground  information’  means  data,  know-how  or  information  generated  in  the 
operation of the Programme, whatever its form or nature. 

Article 3 

Objectives  

The general objective of the Programme is to support the rapid innovation capacity 
of  SMEs, including innovative start-ups and scaleups, with a view to supporting the 
rapid  delivery  of  emerging  and  disruptive  products  and  technologies  for  defence 
address the most recent and fast evolving challenges faced by Member States’ armed 
forces,  in  particular  those  stemming  from  Russia’s  war  of  aggression  against 
Ukraine,  with  a  focus  on  cost-efficiency.  The  Programme  shall  thereby  foster  the 
competitiveness  of  the  European  Defence  Technological  and  Industrial  Base 
(EDTIB)  and  contribute  to  strengthening  the  Union’s  defence  readiness,  while 
reducing strategic dependencies on non-associated third countries.  

2. 

The Programme has the following specific objectives: 

(a) 

(b) 

to  significantly  accelerate  innovation  cycles  of  emerging  and  disruptive 
products  and  technologies  for  defence  developed  across  the  Union  by  SMEs, 
including start-ups, taking into account the urgent needs of Member States and 
tapping into the innovation potential of the Union’s industry as a whole. 

to support the uptake by Member States' armed forces, and European defence 
industrial  prime  contractors  of  emerging  and  disruptive  products  and 
technologies  for  defence  developed  by  SMEs,  including  innovative  start-ups 
and  scaleups,  and  their  scaling  up  across  Europe,  thereby  reinforcing  the 
technological  edge  of  Member  States’  armed  forces  and  enhancing  the 
resilience  and  security  of  supply  for  such  defence  products  and  technologies 
across the EU. 

Article 4 

Budget 

1. 

2. 

3. 

4. 

The indicative financial envelope for the implementation of the Programme, between 
1 January 2027 and 31 December 2027, shall be EUR 115 000 000 in current prices. 

Budget commitments for activities extending over more than one financial year may 
be broken down over several years into annual instalments. 

Appropriations  may  be  entered  in  the  Union  budget  beyond  2027  to  cover  the 
expenses  necessary  and  to  enable  the  management  of  actions  not  completed  by  the 
end of the Programme, as well as expenses covering critical operational activities and 
services. 

The financial envelope referred to in paragraph 1 of this Article and the amounts of 
additional  resources  referred  to  in  Article  5  may  also  be  used  for  technical  and 

EN 

18 

  EN 

 
administrative  assistance  for  the  implementation  of  the  Programme  such  as 
preparatory, monitoring, control, audit and evaluation activities, including the design, 
set up, testing and certification, operation and maintenance of corporate information 
technology  systems  and  platforms,  as  well  as  information  and  communication 
activities, including corporate communication on the political priorities of the Union, 
and  all  other  technical  and  administrative  assistance  or  staff-related  expenses 
incurred by the Commission in  managing the Programme. 

Article 5 

Additional resources 

Member  States,  EU  institutions,  bodies  and  agencies,  third  countries,  international 
organisations,  international  financial  institutions,  or  other  third  parties,  may  make 
additional financial or non-financial contributions available to the Programme, or any 
of  its  specific  activities  or  objectives  referred  to  in  Article  3.  Additional  financial 
contributions shall constitute external assigned revenue within the meaning of Article 
21(2), points (a), (d), or (e) or Article 21(5) of Regulation (EU, Euratom) 2024/2509. 

Resources allocated to Member States under shared management may, at the request 
of  the  Member  State  concerned,  be  transferred  to  the  Programme  subject  to  the 
conditions  set  out  in  the  relevant  provisions  of  Regulation  (EU)  2021/1060.  The 
Commission  shall  implement  those  resources  directly  in  accordance  with  Article 
62(1),  first  subparagraph,  point  (a),  of  Regulation  (EU,  Euratom)  2024/2509  or 
indirectly in accordance with point (c) of that subparagraph. Those resources shall be 
used for the benefit of the Member State concerned. Where the Commission has not 
entered into a legal commitment under direct or indirect management for additional 
amounts  thus  made  available  to  the  Instrument,  the  corresponding  uncommitted 
amounts may, at the request of the Member State concerned, be transferred back to 
the source programmes, in accordance with the conditions set out in Regulation (EU) 
2021/1060. 

Article 6 

Alternative, combined and cumulative funding 

The Programme shall be implemented in synergy with other Union programmes. An 
action  that  has  received  a  Union  contribution  from  another  programme  may  also 
receive  a  contribution  under  the  Programme.  The  rules  of  the  relevant  Union 
programme shall apply to the corresponding contribution, or a single set of rules may 
be applied to all contributions, and a single legal commitment may be concluded. If 
the  Union  contribution  is  based  on  eligible  costs,  the  cumulative  support  from  the 
Union  budget  shall  not  exceed  the  total  eligible  costs  of  the  action  and  may  be 
calculated  on  a  pro-rata  basis  in  accordance  with  the  documents  setting  out  the 
conditions for support.  

Award  procedures  under  the  Programme  may  be  jointly  conducted  under  direct  or 
indirect management with Member States, EU institutions, bodies and agencies, third 
countries,  international  organisations,  international  financial  institutions,  or  other 
third  parties,  provided  the  financial  interests  of  the  Union  are  protected.  Such 
procedures shall be subject to a single set of rules and lead to the conclusion of single 
legal commitments. For that purpose, the partners to the joint award procedure may 
make  resources  available  to  the  Programme  in  accordance  with  Article  5  of  this 

1. 

2. 

1. 

2. 

EN 

19 

  EN 

 
Regulation,  or the partners may be  entrusted with the implementation  of the award 
procedure,  where  applicable  in  accordance  with  Article  62(1),  point  (c),  of 
Regulation  (EU,  Euratom)  2024/2509.  For  the  purposes  of  Article  153(3)  of 
Regulation  (EU,  Euratom)  2024/2509,  in  joint  award  procedures  the  evaluation 
committee  may  be  partially  composed  by  members  that  are  representatives  of  the 
partners in that procedure. 

Article 7 

Third countries associated to the Programme 

1. 

The Programme may be opened to the participation of the following third countries 
through  full  or  partial  association  to  the  Programme,  in  accordance  with  the 
objectives  laid  down  in  Article  3  and  in  accordance  with  the  relevant  international 
agreements or any decisions adopted under those agreements and applicable to:  

(a)  members  of  the  European  Free  Trade  Association,  who  are  members  of  the 

European Economic Area; 

(b)  Ukraine,  in  accordance  with  the  conditions  laid  down  in  the  EU-Ukraine 

Association Agreement. 

2. 

The  association  agreements  for  participation  in  the  Programmes  with  the  countries 
referred to in Article 7 (1) shall: 

(a) 

(b) 

ensure  a  fair  balance  as  regards  the  contributions  and  benefits  of  the  third 
country participating in the Programme; 

lay  down  the  conditions  of  participation  in  the  Programme,  including  the 
calculation of financial contributions, consisting of an operational contribution 
and a participation fee, to a programme and its general administrative costs; 

(c) 

not confer on the third country any decision-making power in the Programme; 

(d)  guarantee the rights of the Union to ensure sound financial management and to 

protect its financial interests; 

(e)  where relevant,  ensure the protection of security and public order interests  of 

the Union. 

3. 

For the purposes of point (d), the  associated third country shall grant the necessary 
rights  and  access  required  under  Regulations  (EU,  Euratom)  2024/2509  and  (EU, 
Euratom)  No  883/2013,  and  guarantee  that  enforcement  decisions  imposing  a 
pecuniary  obligation  on  the  basis  of  Article  299  TFEU,  as  well  as  judgements  and 
orders of the Court of Justice of the European Union, are enforceable and ensure that 
its  competent  authorities  cooperate  with  the  European  Public  Prosecutor’s  Office 
(EPPO)  in  the  investigations  and  prosecutions  of  criminal  offences  affecting  the 
Union’s financial interests in accordance with applicable international agreements or 
other applicable rules. 

Article 8 

Implementation and forms of Union funding 

1. 

The Programme shall be implemented in accordance with Regulation (EU, Euratom) 
2024/2509,  under  direct  management  or  under  indirect  management  with  entities 
referred to in Article 62(1), point (c), of that Regulation. 

EN 

20 

  EN 

 
2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

Union  funding  may  be  provided  in  any  form  in  accordance  with  Regulation  (EU, 
Euratom) 2024/2509. 

In  accordance  with  point  (a)  of  Article  196(2)  of  Regulation  (EU,  Euratom) 
2024/2509,  financial  contributions  may,  where  relevant  and  necessary  for  the 
implementation of an action, cover actions started and costs incurred prior to the date 
of the submission  of the proposal  for those actions,  provided that those  actions did 
not start more than three months before the closing of the call for proposals and have 
not been completed before the signature of the grant agreement.  

Where Union funding is provided in the form of a grant, funding shall be provided as 
financing  not  linked  to  costs  or  simplified  cost  options,  in  accordance  with 
Regulation  (EU,  Euratom)  2024/2509.  Funding  may  be  provided  in  the  form  of 
actual eligible cost reimbursement only where the objectives of an action cannot be 
achieved otherwise. 

In  accordance  with  Article  153(3)  of  Regulation  (EU,  Euratom)  2024/2509,  the 
evaluation  committee  may  be  composed  partially  or  fully  of  independent  external 
experts. 

Article 9 

Eligibility 

Eligibility criteria shall be set to support achievement of the objectives laid down in 
Article 3, in  accordance with Regulation (EU, Euratom) 2024/2509 and shall apply 
to all award procedures under the Programme. 

In  award  procedures  under  direct  and  indirect  management,  one  or  more  of  the 
following legal entities may be eligible to receive Union funding:  

(a) 

entities established in a Member State; 

(b) 

entities established in an associated third country; 

(c) 

international organisations;  

For  actions  supported  under  the  Programme  as  listed  in  Article  10,  with  the 
exception  of  actions  referred  to  in  point  (d)  of  Article  10  (1),  recipients  of  Union 
funding shall be SMEs, including innovative startups and scaleups, and shall comply 
with the eligibility requirements set out in this Article.  

Except  for  actions  referred  to  in  point  (c)  of  Article  10  (1),  recipients  shall  be 
established  in  the  EU  or  in  an  associated  third  country,  have  their  executive 
management structures in the EU or an associated third country. 

Recipients  shall not  be subject  to  control by a non-associated third country or by a 
non-associated third-country entity. 

The infrastructure, facilities, assets and resources of the recipients of Union funding 
which are used for the purposes of the funded action shall be located on the territory 
of  a  Member  State  or  of  an  associated  third  country  for  the  entire  duration  of  the 
action. 

Where  recipients  of  Union  funding  involved  in  an  action  have  no  readily  available 
alternatives or relevant infrastructure, facilities, assets and resources in the Union or 
in an associated third country, they may use their infrastructure, facilities, assets or 
resources which are located or held outside the territory of the Member States or of 

EN 

21 

  EN 

 
8. 

the associated third countries, provided that this use does not contravene the security 
and  defence  interests  of  the  EU  and  its  Member  States,  including  respect  for  the 
principle of good neighbourly relations, and is consistent with the objectives set out 
in Article 3. The costs related to activities using such infrastructure, facilities, assets 
or resources shall not be eligible for support from the Programme. 

Legal  entities  may  be  deemed  to  fulfil  the  eligibility  conditions  referred  to  in  this 
paragraph  where  they  have  fulfilled  equivalent  conditions  under  Regulations  (EU) 
2018/109220,  (EU)  2021/69721,  (EU)  2023/152522,  or  (EU)  2023/241823  of  the 
European Parliament and of the Council or under Regulation (EU) 2025/110624 and 
provided  that  no  subsequent  changes  call  into  question  the  fulfilment  of  those 
conditions. 

9. 

In award procedures, the following actions shall not be eligible for funding: 

(a) 

actions  or  parts  thereof,  that  are  already  fully  financed  from  other  public  or 
private sources, except contributions from the Union in the context of synergy 
actions referred to in Article 6; 

(b) 

actions for the development of products and technologies the use, development 
or production of which is prohibited by applicable international law. 

Article 10 

AGILE actions 

1. 

Actions eligible for funding under the Programme shall implement the objectives set 
out  in  Article  3  of  this  Regulation  and  may  take  one  of  the  following  forms,  or  a 
combination thereof: 

20 
Regulation (EU) 2018/1092 of the European Parliament and of the Council of 18 July 
2018  establishing  the  European  Defence  Industrial  Development  Programme  aiming  at 
supporting the competitiveness and innovation capacity of the Union's defence industry (OJ L 
200, 7.8.2018, p. 30, ELI: http://data.europa.eu/eli/reg/2018/1092/oj). 
21 
Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 
2021 establishing the European Defence Fund and repealing Regulation (EU) 2018/1092 (OJ 
L 170, 12.5.2021, p. 149, ELI: http://data.europa.eu/eli/reg/2021/697/oj). 
22 
Regulation (EU) 2023/1525 of the European Parliament and of the Council of 20 July 
2023  on  supporting  ammunition  production  (ASAP)  (OJ  L  185,  24.7.2023,  p.  7,  ELI: 
http://data.europa.eu/eli/reg/2023/1525/oj). 
23 
Regulation  (EU)  2023/2418  of  the  European  Parliament  and  of  the  Council  of  18 
October  2023  on  establishing  an  instrument  for  the  reinforcement  of  the  European  defence 
industry  through  common  procurement  (EDIRPA)  (OJ  L,  2023/2418,  26.10.2023,  ELI: 
http://data.europa.eu/eli/reg/2023/2418/oj). 
24 
Council Regulation (EU) 2025/1106 of 27 May 2025 establishing the Security Action 
for Europe (SAFE) through the Reinforcement of the European Defence Industry Instrument, 
OJ L, 2025/1106, 28.5.2025, ELI: http://data.europa.eu/eli/reg/2025/1106/oj 

EN 

22 

  EN 

 
 
 
 
(a) 

(b) 

(c) 

(d) 

support  for  the  fast  development  of  emerging  and  disruptive  products  and 
technologies  for  defence,  including  where  it  is  based  on  integration  and 
adaptation  of  civilian  technologies  with  dual  use  potential  for  defence 
purposes; 

support  for  the  market  uptake  of  emerging  and  disruptive  products  and 
technologies for defence, including through dedicated and iterative field testing 
and demonstrations and including through support to aggregation of demand; 

support  for  the  establishment  of  an  entity  or  of  its  executive  management 
structure  in  the  EU  or  in  an  associated  third  country  for  the  effective 
implementation of actions under points (a) and (b); 

supporting action necessary for the effective implementation  of  actions under 
points  (a)  and  (b),  including  but  not  limited  to  qualification,  certification, 
access  to  infrastructure,  access  to  innovative  manufacturing  capacities  and 
processes, skills development, procurement of studies and ecosystem building 
and strengthening activities. 

The  Programme  may  provide  support  for  actions  covering  the  swift  upgrade  of 
existing products and technologies provided that the use of pre-existing information, 
intellectual property, or other rights necessary to carry out the action are not subject 
to  a  restriction  by  a  non-associated  third  country  or  a  non-associated  third-country 
entity  directly,  or  indirectly  through  one  or  more  intermediary  legal  entities,  which 
would prevent the effective implementation of the action. 

Recipients  of  the  Programme  shall  benefit,  where  possible  and  appropriate,  from 
fast-track  access  to  EU  testing  and  experimentation  facilities  and  to  the  EUDIS 
Business Accelerator. 

Article 11 

Award criteria 

Where relevant and appropriate depending on the nature of the award procedure, and 
in accordance with Regulation (EU, Euratom) 2024/2509, award criteria shall be set 
out in the work programmes referred to in Article 16 and shall take into account the 
following principles:  

(a) 

disruptiveness potential;  

(b) 

the quality of the proposal and ability to implement the action; 

(c) 

the impact in the defence domain, considering the needs of Member States and 
associated  third  countries,  including  with  regard  to  cost-efficiency,  speed  of 
delivery, and readiness for operational use. 

The  work  programme  referred  to  in  Article  16  shall  lay  down  additional  details 
concerning the application of the award criteria laid down in paragraph 1, taking into 
consideration  the  objectives  of  the  call  for  proposals,  as  well  as  the  selection  and 
evaluation procedure. 

Article 12 

Selection and award procedure 

2. 

3. 

1. 

2. 

EN 

23 

  EN 

 
1. 

2. 

3. 

4. 

In  order  to  ensure  that  actions  listed  in  Article  10  can  be  effectively  implemented 
without  undue  delay,  the  work  programme  may  identify  award  procedures,  under 
direct or indirect management, that benefit from an accelerated and simplified award 
procedure. 

By way of derogation from Articles 199, 201 and 203 of Regulation (EU, Euratom) 
2024/2509 regarding grants, and Article 170(1), points (b) and (c), and (2) regarding 
procurement  for  award  procedures  identified  in  the  work  programme  the  following 
conditions may apply:  

(a)  Limitation  of  the  requirements  for  the  award  decision  and  signature  of 
legal  commitments  to  a  preliminary  evaluation  of  award  and  exclusion 
criteria;  the  award  decision  may  be  taken  based  solely  on  a  self-
declaration  of  applicants  and  tenderers  on  selection  and  eligibility 
criteria,  especially  regarding  control,  without  request  for  corresponding 
supporting  documents  during 
the  preliminary  evaluation.  The 
Commission shall finalise the final evaluation without undue delay. 

(b)  Notification of the results of the preliminary evaluation to the applicants 
and  tenderers  shall  be  completed  within  a  period  specified  in  the  work 
programme;  the award decision shall be taken within a period specified 
in the work programme. 

Where  the  final  evaluation  referred  to  in  paragraph  2  point  (a)  concludes  that  the 
recipient does not meet all the eligibility and selection criteria, the legal commitment 
shall be terminated. 

The work programme may set up targeted two-stage bottom-up award procedures in 
accordance with the following rules: 

(a) 

during the first stage, a call for expression of interest may be launched without 
specifying  the kind of activities or the instrument of budget implementation to 
be used, to enable applicants and tenderers to submit project proposals or offers 
for  goods,  works  or  services  that  might  contribute  to  the  objectives  of  this 
Regulation, as set out in the Work Programme referred to in Article 16. 

Proposals  and  offers  shall  be  evaluated  and  ranked  based  on  common  award 
criteria, set out in the Work Programme, such as their comparative contribution 
to  the  objectives.  The  evaluation  committee  shall  determine  the  most 
appropriate  instrument  of  budget  implementation  under  direct  or  indirect 
management, as well as propose the maximum amount and form of the Union 
contribution. 

(b)  during  the  second  stage,  within  the  available  budget,  successfully  evaluated 
projects or offers shall be invited to adjust and complete their proposal or offer 
in accordance with the conclusions of the evaluation committee.  

The award procedure shall otherwise proceed in accordance with the rules as set out 
in  Regulation  (EU,  Euratom)  2024/2509  applicable  to  the  respective  instrument  of 
budget implementation. 

Article 13 

Inducement intervention 

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1. 

2. 

3. 

By way of derogation from  Article 9 of this Regulation,  the  work programme  may 
specify  that  an  award  procedure  takes  the  form  of  an  inducement  intervention  to 
allow  for  a  temporary  and  conditional  waiver  of  compliance  with  the  eligibility 
requirementsrelating to the place of establishment or the executive management. 

Compliance  with  the  eligibility  criteria  that  have  been  temporarily  waived  in 
accordance with paragraph 1 of this article shall be achieved and evaluated within a 
timeframe specified in  the  legal  commitment.  The Union support shall be  provided 
once all the requirements have been met. 

If  the  eligibility  criteria  that  have  been  temporarily  waived  in  accordance  with 
paragraph 1 of this article are not complied within the specific timeframe specified in 
the  legal  commitment,  the  action  shall  be  considered  ineligible  and  any  Union 
funding shall be fully recovered. 

4. 

For the purpose of this article, no pre-financing shall be paid. 

Article 14 

Funding rates 

Without  prejudice  to  Article  193  of  Regulation  (EU,  Euratom)  2024/2509,  the  Programme 
may finance up to 100 % of the eligible costs. 

Article 15 

Ownership of results 

1. 

2. 

3. 

4. 

5. 

The results of actions supported by the Programme shall not be subject to any control 
or  restriction  by  non-associated  third  countries  or  by  non-associated  third-country 
entities,  directly,  or  indirectly  through  one  or  more  intermediate  legal  entities, 
including in terms of technology transfer.  

This Regulation shall not affect the Member States’ discretion as regards their policy 
on the export of military technology and equipment. 

Technology transfers shall be carried out in full compliance with the  provisions set 
out  in  Directive  2009/43/EC  on  simplifying  terms  and  conditions  of  transfers  of 
defence-related  products  within  the  Community  and,  where  relevant,  in  Regulation 
(EU) 2021/821 setting up a Union regime for control of exports, brokering, technical 
assistance, transit and transfer of dual-use items. 

Without prejudice to paragraph 2 of this article, any transfer of ownership or granting 
of exclusive licences to  a non-associated third country or to a non-associated third-
country entity for results generated through the Programme, which takes place within 
3 years after the final payment of the action, shall be subject to prior notification and 
approval  by  the  Commission  or  the  relevant  Member  State  or  associated  third 
country authorities under conditions ensuring the protection of the Union’s security 
and  defence  interests.  Where  such  a  transfer  of  ownership  contravenes  the  security 
and  defence  interests  of  the  EU  and  its  Member  States  or  the  objectives  set  out  in 
Article 3, the support provided from the Programme shall be reimbursed. 

Where Union support is provided in the form of the public procurement of a study, 
results shall be owned by the EU and all Member States or associated third countries 
shall have the right, free of charge, to a non-exclusive licence for the use of the study 
upon written request. 

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6. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

Where  Union  support  is  provided  in  the  form  of  a  grant,  EU  institutions,  bodies, 
offices  or agencies as  well as granting authorities shall enjoy  upon request  royalty-
free  access  rights  to  results,  without  impacting  the  ownership  of  results,  including 
IPRs on background information, for the only purpose of developing, implementing 
and  monitoring  existing  Union  policies  or  programmes  in  the  fields  of  its 
competence and the right to grant. 

Article 16 

Work Programme 

The Programme shall be implemented by a work programme as referred to in Article 
110(2) of Regulation (EU, Euratom) 2024/2509.  

The work programme shall set out in detail the categories of actions to be supported 
by the Programme. Those categories shall be in line with the objectives referred to in 
Article 3.  

With  the  exception  of  the  award  procedure  defined  in  Article  12(5),  the  work 
programme shall contain functional requirements where appropriate and shall specify 
the form of Union funding under Article 8, while not preventing competition among 
the calls for proposals. 

The Commission shall adopt the work programme by means of an implementing act. 
This  implementing  act  shall  be  adopted  in  accordance  with  the  advisory  procedure 
referred to in Article 17(3). 

Article 17 

Committee Procedure 

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 
committee within the meaning of Regulation (EU) No 182/2011. 

The  European  Defence  Agency  (EDA)  shall  be  invited  to  provide  its  views  and 
expertise  to  the  committee  as  an  observer.  The  European  External  Action  Service 
shall also be invited to assist in the work of the committee. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply. 

Article 18 

Relationship with Directive 2009/81/EC 

The procurement contract of a Member State concerning any defence product resulting from 
an  action  supported  under  the  Programme  shall  be  considered  as  a  contract  awarded  in  the 
framework of a cooperative programme based on research and development as referred to in 
Article  13  (c)  of  Directive  2009/81/EC  [following  the  adoption  of  Omnibus  directive 
2025/0177 (COD)]. 

Article 19 

Application of the rules on classified information 

1. 

Within the scope of this Regulation: 

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(a)  Member States and associated third countries on whose territory recipients are 
established shall assess the sensitive nature of the background and foreground 
information handled during the implementation of the funded actions. 

(b) 

If such information bears a national classification level, the Member States and 
associated  third  countries  referred  to  in  point  (a)  shall  establish  the  adequate 
security framework, in accordance with national laws and regulations.  

(c)  Each  Member  State  shall  ensure  that  it  offers  a  degree  of  protection  of  EU 
classified  information  equivalent  to  that  provided  by  the  security  rules  of  the 
Council set out in Decision 2013/488/EU; 

(d)  The Commission shall protect classified information received in relation to the 
Programme  in  accordance  with  the  security  rules  set  out  in  Decision  (EU, 
Euratom) 2015/444. 

2. 

The  Commission  shall  make  available  an  accredited  secured  exchange  system  in 
order  to  facilitate  the  exchange  of  classified  and  sensitive  information  between  the 
Commission  and  the  Member  States  and  associated  third  countries  and,  where 
appropriate,  with  the  applicants  and  the  recipients.  That  system  shall  take  into 
account Member States’ national security regulations. 

Article 20 

Audits 

Audits on the use of the Union contribution  carried out  by persons or entities, including  by 
persons  or  entities  other  than  those  mandated  by  the  EU  institutions,  bodies,  offices  or 
agencies, shall form the basis of the overall assurance pursuant to Article 127 of Regulation 
(EU, Euratom) 2024/2509. The European Court of Auditors shall examine the accounts of all 
revenue and expenditure of the Union in accordance with Article 287 TFEU. 

Article 21 

Information, communication and publicity 

1. 

2. 

3. 

Recipients of Union funding shall acknowledge the origin of the funds and ensure the 
visibility of that funding, including when promoting the actions and their results, by 
providing  coherent,  effective  and  proportionate  targeted  information  to  multiple 
audiences, including the media and the public. 

The Commission shall implement information and communication actions relating to 
this  Regulation,  to  actions  taken  pursuant  to  this  Regulation,  and  to  the  results 
obtained. 

Financial resources allocated to the Programme may contribute to the organisation of 
dissemination  activities,  match-making  events  and  awareness-raising  activities, 
including to open supply chains to foster the cross-border participation of SMEs. 

Article 22 

Entry into force and application 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

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This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area(s) concerned .............................................................................................. 3 

Objective(s) .................................................................................................................. 3 

1.3.1.  General objective(s) ..................................................................................................... 3 

1.3.2.  Specific objective(s) ..................................................................................................... 3 

1.3.3.  Expected result(s) and impact ...................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 3 

1.4. 

1.5. 

The proposal/initiative relates to: ................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 4 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 4 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 4 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES................................................................................... 8 

Monitoring and reporting rules .................................................................................... 8 

Management and control system(s) ............................................................................. 8 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 8 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 

the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 8 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities ................................................................ 9 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 10 

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3.2. 

Estimated financial impact of the proposal on appropriations ................................... 12 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 12 

3.2.1.1.  Appropriations from voted budget ............................................................................. 12 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 17 

3.2.2.  Estimated output funded from operational appropriations......................................... 22 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 24 

3.2.3.1.Appropriations from voted budget ............................................................................... 24 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 24 

3.2.3.3.  Total appropriations ................................................................................................... 24 

3.2.4.  Estimated requirements of human resources.............................................................. 25 

3.2.4.1.  Financed from voted budget....................................................................................... 25 

3.2.4.2.  Financed from external assigned revenues ................................................................ 26 

3.2.4.3.  Total requirements of human resources ..................................................................... 26 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 28 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 28 

3.2.7.  Third-party contributions ........................................................................................... 28 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 29 

DIGITAL DIMENSIONS .......................................................................................... 29 

Requirements of digital relevance .............................................................................. 30 

Data ............................................................................................................................ 30 

Digital solutions ......................................................................................................... 31 

Interoperability assessment ........................................................................................ 31 

Measures to support digital implementation .............................................................. 32 

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1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Regulation of the European Parliament and of the Council Establishing the 

Programme for Agile and Rapid Defence Innovation (AGILE) 

1.2. 

Policy area(s) concerned  

Defence Industry, Research and Innovation, Competitiveness. 

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

The general objective of the Programme is to support the rapid delivery of emerging 
and disruptive products and technologies for defence addressing the most recent and 
fast  evolving  challenges  faced  by  Member  States’  armed  forces,  in  particular  those 
stemming  from  Russia’s  war  of  aggression  against  Ukraine.  It  aims  to  enhance  the 
rapid innovation capacity and responsiveness of the European defence technological 
and  industrial  base  (EDTIB),  fostering  its  competitiveness  and  contributing  to 
strengthening  the  Union’s  defence  readiness,  as  well  as  reducing  strategic 
dependencies on non-associated third countries.    

1.3.2. 

Specific objective(s) 

The Programme has two specific objectives: 

To  significantly  accelerate  innovation  cycles  of  emerging  and  disruptive  products 
and  technologies  for  defence  developed  across  the  Union  by  SMEs,  including 
innovative  startups  and  scaleups,  taking  into  account  the  urgent  needs  of  Member 
States and tapping into the innovation potential of the EU’s industry as a whole.   

To  support  the  uptake  by  Member  States'  armed  forces  and  European  defence 
industrial prime contractors of emerging and disruptive products and technologies for 
defence  developed  by  SMEs,  including  innovative  startups  and  scaleups,  and  their 
scaling  up  across  Europe,  thereby  reinforcing  the  technological  edge  of  Member 
States’ armed forces and enhancing the resilience and security of supply for defence 
products and technologies across the Union. 

1.3.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

AGILE  is  expected  to  demonstrate  new  pathways  for  more  efficient  defence 
innovation support that could could inform thinking on future EU defence innovation 
programmes  whithin  the  context  of  the  the  Commission’s  proposals  for  the 
Multiannual Financial Framework from 2028 onwards. 

It  will  test  streamlined  funding  mechanisms  for  innovative  start-ups,  scale-ups  and 
SMEs  in  the  defence  sector,  demonstrating  faster  routes  to  market  for  defence 
innovation. It will boost defence readiness by delivering innovative defence solutions 
aligned  with  the  needs  of  armed  forces  in  the  EU  Member  States  and  associated 
countries.  

It  will  contribute  to  improved  protection  of  people  in  the  EU,  by  improving  the 
technological edge of armed forces and by strengthening deterrence.  

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It  will  demonstrate  the  feasibility  of  a  lower  administrative  burden  and  accelerated 
procedures  for  supported  companies  (particularly  SMEs,  including  innovative 
startups and scaleups) which are currently disproportionately affected by the lengthy 
timelines  of  existing  defence  R&D  programmes,  providing  valuable  lessons  for 
future programmes. 

1.3.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

Progress towards SO1 will be monitored through the number of applications received 
and  proposals  awarded  per  call,  including  participation  of  first-time  defence 
innovators; average time to award/signature of grant agreement, measured from call 
closure  to  Union  funding  award  signature  and  disbursement  of  relevant  funds.  The 
target is to keep time to  award to 4 months, with a baseline of 8 months (based on 
EDF experience).  

Progress towards SO 2 will be monitored through the number of proposals awarded 
per call, particularly for  the actions related to  cross-border uptake of emerging and 
disruptive products and technologies for defence, tracking progress of participants in 
the Programme and the  extent to  which funded  projects  lead to  uptake by Member 
States'  armed  forces  or  prime  contractors.  Baselines  and  targets  will  be  set  at 
programme  launch  and  reviewed  at  the  end  of  the  programming  period  (1  year 
duration).  

1.4. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project / preparatory action25  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

Given that the Programme is limited to the current MFF, all requirements are short to 
medium  term.  The  immediate  priority  is  to  establish  the  Programme's  governance 
and  operational  structures  and  publish  calls  for  proposals  as  early  as  possible  to 
maximise  the  time  available  for  project  implementation  and  budget  absorption, 
allowing  funded  projects  to  deliver  tangible  results  before  the  end  of  the 
programming period. 

Indicative timeline for rollout: adoption of the Regulation by end 2026, publication 
of the first  Work Programme and calls  for proposals  at  the beginning of  2027, and 
signature of grant agreements by Q2-Q3 2027. 

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 

25 

As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. 

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the  purposes  of  this  section  'added  value  of  EU  involvement'  is  the  value  resulting 
from  EU  action,  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

Coordinated EU-level action is crucial for swiftly achieving credible deterrence and 
technological  leadership  in  defence.  The  rapid  innovation  cycles  seen  in  modern 
warfare,  as  highlighted by the war in  Ukraine,  require the EU to  be able to  swiftly 
develop  and  deploy  innovative  defence  solutions.  Member  States’  action  alone 
cannot sufficiently address the challenges identified at the required scale and speed 
in  line  with  EU  strategic  interests.  Not  all  Member  States  have  mechanisms  to 
support  rapid  defence  innovation,  leaving  innovative  companies  in  some  countries 
without access to funding opportunities. Even where national instruments exist, they 
typically  have  a  domestic  focus  and  lack  the  scale  needed  to  support  cross-border 
deployment  of  solutions  meeting  EU-wide  operational  needs.  This  results  in 
fragmented  efforts,  duplicated 
for 
collaboration across the EU’s Defence Technological and Industrial Base (EDTIB).  

investments,  and  missed  opportunities 

An  EU-level  action  such  as  AGILE  provides  clear  added  value  by  ensuring  all 
companies  across  Member  States  have  equal  access  to  fast,  streamlined  funding 
regardless  of  national  policy  in  their  home  country.  By  operating  at  EU  scale  with 
simplified  procedures  and  short  award  times,  AGILE  can  respond  to  the  pace  of 
modern  warfare  more  effectively  than  fragmented  national  approaches.  It  tackles 
cross-border  challenges  by  supporting  solutions  that  meet  EU  Member  States’ 
operational  requirements,  tapping  into  the  innovative  potential  of  the  EU  industrial 
ecosystem  as  a  whole  and  enabling  new  defence  players  to  emerge  across  the  EU. 
This  coordinated  approach  reduces  duplication,  maximises  the  impact  of  EU 
investments,  and  decreases  collective  reliance  on  non-EU  systems  in  ways  that 
individual Member States’ actions cannot achieve. 

1.5.3.  Lessons learned from similar experiences in the past 

The  design  of  the  Programme  draws  on  lessons  learned  from  existing  defence 
programmes,  including the European Defence Fund (EDF) and its interim evaluation 
report.  Building  on  these  experiences  and  in  full  complementarity,  AGILE  aims  to 
introduce  a  more  agile  and  responsive  approach  to  defence  innovation  support, 
tailored  to  the  rapidly  evolving  needs  of  the  EU's  defence  sector.  It  also  builds  on 
extensive  defence  stakeholder  consultations  (including  through  the  2025  Strategic 
Dialogue  with  the  European  Defence  Industry  and  the  Implementation  Dialogue  to 
prepare the Defence Readiness Omnibus package).   

AGILE will adopt simplified methodologies and processes, including on governance, 
selection, evaluation and award procedure, and eligibility assessment, to enable faster 
decision-making  and  reduce  administrative  burden  (both  for  applicants  and  for  the 
Commission). This streamlined approach will facilitate swift support for innovative 
defence solutions. 

AGILE will focus on providing targeted support to single entities, particularly SMEs, 
including  innovative  startups  and  scaleups,  which  are  often  at  the  forefront  of 
innovation. This approach will not only simplify the application and funding process 
but also enable more direct and effective support for these key players in the defence 
innovation ecosystem. 

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1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

The proposed Programme is fully compatible with the current MFF 2021-2027, as it 
does  not  require  any  new  budget  or  alteration  to  the  overall  budget  allocation  for 
existing programmes. Instead, it involves the redeployment of existing envelopes for 
space and defence to support rapid defence innovation.  

The  Programme  will  operate  within  the  existing  financial  framework,  leveraging 
synergies with other EU instruments, such as the European Defence Fund (EDF) and 
the  European  Innovation  Council  (EIC).  By  building  on  the  strengths  of  these 
programmes, addressing specific gaps and working in full complementarity, AGILE 
will enhance the overall effectiveness and efficiency of EU funding in this area. 

The  implementation  of  AGILE  in  2027  will  provide  lessons  and  insights  that  can 
serve to inform the approach to defence innovation in the next MFF.  

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

Given  the  current  stage  of  the  MFF  2021-2027,  the  availability  of  new  funding 
sources is  limited. Consequently, the financing  of the  Programme relies on internal 
reallocations within the existing MFF.  

The total funding allocated to the Programme is €115 million, which will be financed 
entirely  through  redeployment  of  resources  from  existing  programmes  under  the 
Directorate-General for Defence Industry and Space (DG DEFIS). The breakdown of 
the funding sources is as follows: 

€35 million from the European Defence Industrial Programme (EDIP) 

€35 million from the European Defence Fund (EDF) 

€22.5 million from the EU Space Programme 

€22.5 million from secured connectivity Programme 

This  approach  allows  for  the  optimal  use  of  available  resources  in  support  of 
defence,  ensuring  that  the  Programme  can  be  implemented  without  requiring 
additional funding from the EU budget.  

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1.6. 

Duration of the proposal/initiative and of its financial impact 

 limited duration  

–    in effect from XX/XX/XX to XX/XX/XX  

–    financial impact  from  2027 for commitment appropriations and from  2027 to 

2029 for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned  

Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank and the European Investment Fund 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation 

–   public law bodies 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees 

–   bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–  bodies  established  in  a  Member  State,  governed  by  the  private  law  of  a 
Member  State  or  Union  law  and  eligible  to  be  entrusted,  in  accordance  with 
sector-specific  rules,  with  the  implementation  of  Union  funds  or  budgetary 
guarantees,  to  the extent that such bodies are controlled by public law bodies or 
by bodies governed by private law with a public service mission, and are provided 
with adequate financial guarantees in the form of joint and several liability by the 
controlling bodies or equivalent financial guarantees and which may be, for each 
action, limited to the maximum amount of the Union support. 

Comments  

The AGILE Regulation  ensures that several implementation methods can be selected: direct 
management, indirect management, or a combination of both. The choice of implementation 
method  will  be  made  on  a  case-by-case  basis  to  maximise  impact,  efficiency,  and 
effectiveness of the resources allocated to the Programme. For example, indirect management 

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may  be  used  for  certain  activities,  such  as  testing  and  validation  campaigns,  where  existing 
expertise and capabilities can be leveraged, including e.g. for the European Defence Agency. 
This flexible approach will allow for the optimal use of resources and ensure the Programme's 
manner. 
objectives 

achieved 

effective 

timely 

and 

are 

in 

a 

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  EN 

 
 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Given  the  limited  duration  of  the  instrument,  the  Commission  will  prepare  an 
implementation  report  at  the  end  of  the  implementation  period  to  present  the  key 
achievements  and  lessons  learned.  This  will  inform  decisions  on  the  design  of 
support to defence innovation under the next MFF from 2028.  

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

The  Programme  will  utilize  all  forms  of  EU  funding  available  under  the  Financial 
Regulation,  including  grants,  prizes,  and  procurements.  This  will  enable  the 
Programme  to  respond  to  the  diverse  needs  of  the  companies,  from  prototype 
development to testing and validation, with a focus on technologies and products at 
high TRL levels.  

By using a range of funding instruments, the Programme can provide support that is 
tailored to the specific needs of each project, and can help to bridge the gap between 
research  and  market  deployment.  The  Programme  will  aim  to  pay  on  the  basis  of 
milestones  achieved,  ensuring  that  funding  is  tied  to  concrete  results.  The 
Programme  will  be  designed  to  balance  the  need  for  speed  and  flexibility  with  the 
need  for  effective  control  and  risk  management.  The  Programme  will  also  have  a 
mechanism  in  place  for  recovering  funding  if  applicants  are  found  not  to  fulfil 
eligibility  and selection  criteria,  and will strive to  have  a quick time-to-grant  while 
place. 
ensuring 

necessary 

controls 

that 

the 

are 

in 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

The Programme has identified a risk that some applicants may be finally found not to 
fully  comply  with  the  eligibility  criteria.  To  mitigate  this  risk,  the  Programme  will 
conduct  a  preliminary  evaluation  of  selection  and  eligibility  criteria  based  on 
declarations of honour by applicants.  To provide an additional layer  of control, the 
Programme  will  also  conduct  random  sampling  of  applicants  for  fully  fledged 
ownership and control assessments (OCAs) by REA.  

This approach is considered balanced and justified, given the Programme's focus on 
supporting SMEs in the defence sector. Internal data from EU defence programmes 
suggests  that  the  vast  majority  of  defence  SMEs  in  the  European  Union  are  EU-
controlled,  and  the  risk  of  non-compliance  is  therefore  considered  to  be  relatively 
low.  If  the  applicant  is  finally  considered  to  not  fulfil  eligibility  criteria,  the 
Programme foresees that any paid Union funds shall be recovered.  

Additionally,  the  Programme  will  include  an  inducement  intervention,  where 
eligibility  criteria  (particularly  EU  establishment)  may  be  waived  under  certain 
conditions,  provided  that  the  beneficiary  fulfils  these  criteria  within  a  specified 
timeline.  To  minimise  risks  associated  with  this  intervention,  no  pre-financing  will 
be paid to beneficiaries who receive funding under this scheme. The internal control 
system  will be designed to  ensure that these risks are effectively  managed and that 
the Programme's objectives are achieved. 

EN 

9 

  EN 

 
 
2.2.3.  Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  between 
the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure)  

The cost of controls for the Programme is estimated to be around 2-3% of the total 
programme budget, which is considered to be a reasonable and proportionate amount 
given the programme's  objectives and risk profile. This  estimate  takes into account 
the  costs  of  conducting  preliminary  evaluations,  random  sampling  for  OCAs,  and 
other control measures.  

The  expected  level  of  risk  of  error  is  estimated  to  be  low,  given  the  Programme's 
focus  on  milestone-based  payments  and  the  mechanism  for  recovering  funding  if 
applicants  are  found  not  to  fulfil  eligibility  and  selection  criteria.  The  Programme 
aims  to  maintain  an  error  rate  below  2%,  in  line  with  the  Commission's  overall 
target. The cost-effectiveness of the controls will be regularly reviewed and assessed 
to ensure that they remain proportionate and effective in managing the Programme's 
risks. 

2.3.  Measures to prevent fraud and irregularities  

AGILE  will  rely  on  existing  measures  and  frameworks  to  prevent  and  detect  fraud 
and irregularities. The Programme will be subject to the Commission's overall anti-
fraud framework, which includes regular monitoring and reporting on fraud risks and 
incidents.  The  Commission  will  continue  to  work  closely  with  the  European  Anti-
Fraud Office (OLAF) and other relevant authorities to prevent and investigate fraud 
and irregularities.  

Additionally,  audits  on  the  use  of  the  Union  contribution  will  be  carried  out  by 
persons or entities, including by persons or entities other than those mandated by the 
Union institutions, bodies, offices or agencies, and will form the basis of the overall 
assurance  under  Article  127  of  the  Financial  Regulation.  The  European  Court  of 
Auditors  will  also  examine  the  accounts  of  all  Union  revenue  and  expenditure    in 
accordance with Article 287 TFEU.  

EN 

10 

  EN 

 
 
ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

•  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

[XX.YY.YY.YY] 

Diff./Non-
diff.26 

from 
EFTA 
countries
27 

from 
candidate 
countries 
and 
potential 
candidates
28 

From 
other 
third 
countries 

other assigned 
revenue 

Diff./Non
-diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff. 

from 
EFTA 
countries 

Contribution  

from 
candidate 
countries 
and 
potential 
candidates 

from 
other 
third 
countries 

other assigned 
revenue  

13.0901  Programme  for  Agile  and  Rapid 
Defence Innovation 

5 

Diff. 

YES 

NO 

NO 

NO 

[XX.YY.YY.YY] 

Diff./Non
-diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

26 
27 
28 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

11 

  EN 

 
 
 
 
 
 
 
 
 
3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Source of financing of appropriations under the Programme for agile and rapid defence innovation (AGILE) 

Contribution from 
Heading 1 

E.04020100.02 
Galileo  

E.04020200 
Copernicus 

E.04030100 Secured 
connectivity 

Total Heading 1 

Contribution from 
Heading 5 

E.13030100 EDF 

E.13010600 EDIP 

E.13080100 EDIP 

E.13050100 Secured 
Connectivity 

Total Heading 5 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Total 

-11.250 

-11.250 

-11.250 

-11.250 

+22.500 

+22.500 

0.000 

0.000 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Total 

-35.000 

-35.000 

-3.500 

-3.500 

-31.500 

-31.500 

-45.000 

-45.000 

-115.000 

-115.000 

EN 

12 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.2.1.  Appropriations from voted budget 

Heading of multiannual financial framework  

5 

Security and Defence – Cluster 13 Defence 

EUR million (to three decimal places) 

DG DEFIS 

Year 

2024 

Year 

2025 

Year 

2026 

Operational appropriations  

13.0901 Programme for Agile and Rapid Defence Innovation 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  

Year 

2027 

TOTAL 
MFF 
2021-
2027 

115.000 

115.000 

30.000  

30.000 

0.000 

0.000 

TOTAL appropriations 
for DG DEFIS 

Commitments 

Payments 

TOTAL 

operational 

appropriations  

Commitments 

Payments 

TOTAL  appropriations  of  an  administrative  nature  financed 
from the envelope for specific programmes  

(4) 

(5) 

(6) 

(3) 

=1a+1b+3 

=2a+2b+3 

Year 

2024 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

115.000 

115.000 

30.000 

30.000 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 2021-
2027 

0.000 

0.000 

0.000 

0.000 

0.000 

115.000 

0.000 

30.000 

115.000 

30.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

13 

EN 

 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
 
 
  
 
TOTAL appropriations under 
HEADING 5 

Commitments 

of the multiannual financial framework 

Payments 

=4+6 

=5+6 

•  TOTAL  operational 
operational headings) 

appropriations 

(all 

Commitments 

Payments 

•  TOTAL  appropriations  of  an  administrative  nature  financed 
from  the  envelope  for  specific  programmes  (all  operational 
headings) 

TOTAL appropriations Under          

Heading 1 to 6 

Commitments 

of the multiannual financial framework 
(Reference amount) 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

0.000 

0.000 

0.000 

115.000 

0.000 

0.000 

0.000 

30.000 

115.000 

30.000 

Year 

2024 

0.000 

0.000 

Year 

2025 

0.000 

0.000 

Year 

2026 

0.000 

0.000 

Year 

2027 

115.000 

30.000 

TOTAL MFF 2021-
2027 

115.000 

30.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

115.000 

115.000 

0.000 

0.000 

0.000 

30.000 

30.000 

Heading of multiannual financial  framework  

7 

‘Administrative expenditure’  

DG DEFIS 

 Human resources  
 Other administrative expenditure  

TOTAL DG DEFIS 

Appropriations  

TOTAL appropriations under HEADING 7 of the multiannual financial 
framework  

EN 

(Total 
commitments 
= Total 
payments) 

14 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.582 

0.018 

0.600 

1.164 

0.161 

1.325 

TOTAL 
MFF 2021-
2027 

1.746 

0.179 

1.925 

0.000 

0.000 

0.600 

1.325 

1.925 

EUR million (to three decimal places) 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL appropriations under HEADINGS 1 to 7 

Commitments 

0.000 

0.000 

0.600 

116.325 

116.925 

of the multiannual financial framework  

Payments 

0.000 

0.000 

0.600 

31.325 

31.925 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

EN 

15 

EN 

 
 
  
 
3.2.3. 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED APPROPRIATIONS 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
2021 - 2027 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.582 

0.018 

0.600 

0.000 

0.000 

0.000 

1.164 

0.161 

1.325 

0.000 

0.000 

0.000 

1.746 

0.179 

1.925 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.600 

1.325 

1.925 

VOTED APPROPRIATIONS                            

+                                                               

Year 

2024 

Year 

Year 

Year 

2025 

2026 

2027 

TOTAL 
2021 - 
2027 

3.2.3.2.  Total appropriations 

TOTAL 

EXTERNAL ASSIGNED REVENUES 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.582 

0.018 

0.600 

0.000 

0.000 

0.000 

1.164 

0.161 

1.325 

0.000 

0.000 

0.000 

1.746 

0.179 

1.925 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.600 

1.325 

1.925 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature 
will  be  met  by  appropriations  from  the  DG  that  are  already  assigned  to  management  of  the  action 
and/or  have  been  redeployed  within  the  DG,  together,  if  necessary,  with  any  additional  allocation 
which may be granted to the managing DG under the annual allocation procedure and in the light of 
budgetary constraints. 

3.2.4.  Estimated requirements of human resources  

–    The proposal/initiative does not require the use of human resources  

–   The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below 

EN 

16 

  EN 

 
  
  
3.2.4.1.  Financed from voted budget 

Estimate to be expressed in full-time equivalent units (FTEs) 

VOTED APPROPRIATIONS 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (inFTEs) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support 
line 
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

The staff required to implement the proposal (in FTEs):  

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3 

6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

6 

To be covered by 
current staff 
available in the 
Commission 
services  

Exceptional additional staff* 

To be financed 
under Heading 7 
or Research 

To be financed 
from BA line 

To be financed 
from fees 

N/A 

Establishment 
plan posts 

6 

External 
staff 
(CA, SNEs, INT) 

Description of tasks to be carried out by: 

Officials and temporary staff 

The FTEs sought will work on the policy development as programme manager to set 
up  the  priority  domains  (5  AD).  The  assistant  will  cover  all  the  administrative  part 
linked natably to the calls, etc 

External staff 

3.2.5.  Overview of estimated impact on digital technology-related investments 

EN 

17 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL Digital and IT appropriations 

Year 

Year 

Year 

Year 

2024 

2025 

2026 

2027 

TOTAL 
MFF 
2021 - 
2027 

HEADING 7 

IT expenditure (corporate)  

Subtotal HEADING 7 

Outside HEADING 7 

Policy IT expenditure on operational 
programmes 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.6.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–    can be fully financed through redeployment within the relevant heading of the 

multiannual financial framework (MFF) 

See table 3.2.1 

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation 

–    requires a revision of the MFF 

3.2.7.  Third-party contributions  

The proposal/initiative: 

–    does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

Total 

Specify the co-financing body  

TOTAL appropriations co-
financed  

3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

– 

 

 

on own resources  

on other revenue 

  please indicate, if the revenue is assigned to expenditure lines 

     EUR million (to three decimal places) 

EN 

18 

  EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
Budget revenue line: 

Article …………. 

Appropriations 
available for the 
current financial 
year 

Impact of the proposal/initiative29 

Year 2024 

Year 2025  Year 2026 

Year 2027 

For assigned revenue, specify the budget expenditure line(s) affected. 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or 
any other information). 

29 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20% for collection costs. 

EN 

19 

  EN 

 
 
 
 
 
 
 
 
 
 
 
4. 

DIGITAL DIMENSIONS 

The Programme does not establish any new requirements of digital relevance. It will rely 
on existing and already assessed digital and IT systems, notably for EDF.  

4.1. 

Requirements of digital relevance 

The Programme will rely on existing IT systems and digital infrastructure already in place 
for  EU  defence  programmes,  notably  EDF.  These  systems  have  already  been  subject  to 
interoperability  assessments  in  the  context  of  the  relevant  LFDS  and  associated  Digital 
Statements.  

Since  no  new  or  significantly  modified  binding  provisions  concerning  digital  public 
that  Programme's  digital 
services  are 
implementation will be carried out through already-assessed systems without modification 
to their core architecture or cross-border interoperability features. 

this  Regulation,  and  given 

introduced  by 

4.2. 

Data 

Data collection, processing and exchange related to the Programme (including application 
submission,  eligibility  assessment,  grant  management  and  reporting)  will  follow  the  data 
governance  frameworks,  standards  and  specifications  already  established  under  the  EDF 
and related EU programmes.  

The  once-only  principle  has  been  observed,  and  no  new  data  collection  obligations  are 
introduced. Data flows, stakeholder roles and reporting obligations remain consistent with 
those already assessed. No additional assessment is therefore required under this section. 

4.3. 

Digital solutions 

The  Programme  will  not  introduce  new  digital  solutions.  Implementation  will  rely  on 
existing  platforms  and  systems  already  deployed  for  EU  defence  funding  programmes,  in 
particular  those  used  under  the  EDF,  which  have  already  undergone  the  relevant 
assessments  regarding  functionality,  responsible  body,  accessibility,  reusability,  AI  Act 
compliance  where  applicable,  and  conformity  with  the  EU  cybersecurity  framework  and 
other applicable digital policies including eIDAS.  

4.4. 

Interoperability assessment 

Given  that  the  Programme  relies  entirely  on  existing  IT  systems  already  assessed  in  the 
context of the EDF, no new cross-border interoperability requirements are introduced. The 
digital public services affected by the Programme (including call management, application 
submission,  evaluation  support  and  grant  monitoring)  are  supported  by  network  and 
information  systems  whose  cross-border  interoperability  has  already  been  evaluated.  No 
remaining  barriers  to  cross-border  interoperability  have  been  identified  that  would  not 
already be covered by existing assessments. 

4.5. Measures to support digital implementation 

Since the Programme relies on existing and already-assessed digital infrastructure, no new 
dedicated  digital  implementation  measures  are  required.  Smooth  digital  implementation 
will  be  ensured  through  the  application  of  existing  operational  procedures,  user  guidance 

EN 

20 

  EN 

 
and support mechanisms already in place under the EDF and related programmes.  

If  any  adjustments  to  existing  systems  are  needed  during  implementation,  these  will  be 
addressed  within  the  governance  frameworks  of  the  relevant  programmes  without  giving 
rise to new requirements of digital relevance. 

EN 

21 

  EN