EU approves plan of 115 million to support Defense start-ups

O Council of the European Union (EU) today approved the creation of a EUR 115 million programme to support Defense start-ups to develop innovative technologies with artificial intelligence, drones or quantum technology.

Last week, the European Parliament (EP) had also approved this programme in plenary session, but it is now to be signed by the Presidents of the two institutions and published in the Official Journal of the EU so that it can enter into force.

In a statement, the EU Council, which represents the governments of 27 Member States consider that this plan, entitled AGILE, will provide the necessary financial support for small and medium-sized enterprises (SMEs), including ‘start-ups’, to develop ‘emerging and disruptive products’ in the field of Defence.

“ Designed as an agile complement to the set of instruments that the EU already has in the field of the Defence Industry, AGILE will help SMEs move from the prototype to operational capacity,” the institution said.

The EU Council states that this project will focus mainly on “the development and testing of innovative defence products and technologies, including the adaptation of civil technologies to be used in defence.”.

Among the defense technologies that the program plans to finance, is artificial intelligence, quantum computing, robotics, cybercapacity and space systems, and the program has been designed to stimulate innovation through accelerated grants and access to testing and certification.

Cited in the statement, Helen McEntee, Irish Defense Minister – a country currently holding the rotating presidency of the EU Council – states that Ukraine has shown that “innovation and state-of-the-art technology can be decisive for defence resilience.”.

“AGILE provides SMEs with an additional fundamental tool to do what they do best: to innovate, faster and on a larger scale, transforming technological excellence into operational capacity,” he says.

With 115 million, this project should support between 20 and 30 SME projects from the European Union, Ukraine, Iceland, Norway and Liechtenstein. Each project will be funded with funds between one and five million.

The EU Council indicates that the objective is that the deadline between the application and the award of a grant is “only four months” and that “the products and technologies concerned will reach the Armed Forces within one to three years”.

At the time of the presentation of this plan, in March, the European Defence Commissioner, Andrius Kubilius, indicated that, at present, around 70% to 80% of EU Defense spending is invested in the 10 largest companies in the sector – a rate that in the United States is less than 40%.

Kubilius pointed out that these companies develop high-quality products, which take “a long time to produce, are very expensive and require technology of excellence”, but we must ensure that the block also has the ability to “adapt very quickly” to new challenges and “increase production immediately”.

“ We have to be smarter and faster than our opponents. That is why we need more innovative SMEs and start-ups. We need more disruptive and cheaper solutions for our Armed Forces. SMEs and start-ups can help if we boost them with quick support and simple rules,” he said.