Babelʼs sources in the European Parliament: the EU will create a new investment program for defense startups for €115 million and integrate Ukraine into it

On July 15, the EU Council and the European Parliament agreed to create a new €115 million investment programme for defence innovation (AGILE). Its main goal is to quickly bring and scale new developments from the laboratory to the battlefield. The programme is due to start operating in early 2027.

The European Commission explained that the European Union needs a mechanism that will match the pace of modern warfare: “Russia’s war against Ukraine has shown that success on the battlefield now depends on short innovation cycles; the ability to develop, test, implement new technologies and cost-effective solutions in weeks or months, not years. AGILE is designed for startups and innovators who move at high speed.”

Ukraine will be involved in the program on the basis of the Association Agreement with the EU. Kyiv will not pay any entrance fees. This was told to Babel by a source in the European Parliament who knows the details of the negotiations between the EU Council, the European Commission and the European Parliament. In addition, the Babel correspondent got acquainted with the text of the draft law.

The program will also create a special RAZOM mechanism. Thanks to it, any weapon or technology financed under AGILE and certified by the European Commission will immediately become available to the Armed Forces of Ukraine. Procurement for the Armed Forces will be financed by an EU loan of €60 billion.

What AGILE involves:

• The program is focused on small and medium-sized businesses, in particular startups and companies that are scaling.
• Priority areas: artificial intelligence, drones, robotics, quantum technologies, and cybersecurity.
• The EU can cover up to 100% of eligible project costs.
• The European Commission will approve grants in four months instead of a year.
• Developers will gain access to testing grounds, certification, and resources from major defense customers.
• Ready-made technologies will reach the Defense Forces within 1-3 years.

The preliminary agreement still needs to be formally approved by the EU Council and the European Parliament. After that, the regulation will undergo legal review and enter into force. The program is scheduled to start operating from the beginning of 2027.

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