On Wednesday 25 March, the European Commission unveiled the new ‘AGILE’ Fund, designed to accelerate the development of breakthrough technologies in the defence sector.
Endowed with €115 million until the end of 2027, this pilot financial instrument will support between 20 and 30 projects by innovative companies established in the European Union, Norway and Ukraine, with the aim of integrating disruptive technologies such as artificial intelligence, quantum computers, robotics, and cybertechnologies. It will be able to fund up to 100% of the eligible costs of a project, with financial assistance ranging from €1 million to €5 million.
“New emerging technologies shape modern warfare. The European defence industry has been fragmented and the message we get from the SMEs and start-ups is that they often face difficulties when they try to get their foot in the door in defence procurement”, said the Vice-President of the EU institution, Henna Virkkunen.
The European Commissioner for Defence, Andrius Kubilius, pointed out that currently, “about 70-80%” of defence procurement in the EU, particularly in the countries that spend the most, are primarily directed at the 10 largest contractors, whereas in the United States this proportion is “less than 40%”.
According to the Commissioner, the aim of the ‘AGILE’ fund will be “speed” of execution: - a deadline of four months has been set for the evaluation of applications, which may be submitted by a consortium, and for a decision on the granting of funding; - disruptive technologies and products will have to be brought to market “within six to twelve months, or even less”.
“This is incredible speed for the EU’s bureaucracy and decision-making process”, said Mr Kubilius.
Asked about the Fund’s limited resources, he stressed the importance of targeting aid at a small number of innovative European start-ups, using the example of Helsing. As for the financial allocation of €115 million, this is made up of appropriations still available from the EDIP programme, the European Defence Fund and the space programme, he said, hoping that the negotiations on the 2028-2034 Multiannual Financial Framework will make it possible to increase the envelope, if the experiment proves conclusive.
See the proposal for a regulation establishing the AGILE Fund: https://aeur.eu/f/lc4 (Original version in French by Mathieu Bion)