After launching its “28th regime” last week, the European Union aims to tackle the funding of startups in the defense sector. Specifically, it wants to help young tech companies in Europe produce more, in a “record time”, in defense, with a funding of 115 million euros, the European Commission announced on Wednesday.
“We want to make things easier for everyone with good ideas,” summarized European Commission Vice-President Henna Virkkunen in front of the press. Faced with the Russian threat, the EU is looking to develop its defense industry and has already implemented several financial instruments, including loans up to 150 billion euros for its member states and certain other associated countries.
The war in Ukraine, which highlights the role of technology every day, such as drones or artificial intelligence, has prompted the Commission to propose new funding, targeting small tech companies, startups, or those in the growth phase (scale-up).
Four months to receive grants
“Today, between 70 and 80% of investments made by the most important member states are for the ten largest defense companies,” said European Commissioner for Defense Andrius Kubilius.
This new program, named “Agile”, aims to limit the time needed to obtain grants to a maximum of four months, allowing these new technologies to be used by the defense sector within one to three years.
“Agile” will support between 20 and 30 projects, financing up to 100% of all eligible costs in EU member states, Ukraine, and EFTA countries like Switzerland, Norway, or Iceland. This proposal still needs approval from the 27 and the European Parliament.
