The European Parliament's joint ITRE and SEDE committee on 21 May 2026 debated the Agile proposal for rapid defense innovation, with co-rapporteurs Tonino Picula (S&D, Croatia) and Ivars Ijabs (Renew, Latvia) presenting targeted amendments to preserve the instrument's speed, flexibility, and SME focus. The debate revealed a central divergence over whether to include prime contractors as direct beneficiaries, with the EPP pushing for broader eligibility while the centre-left and Renew insisted on keeping the focus on SMEs and startups.
Picula stressed linking Agile-developed products to Ukraine support loans and ADIP's military sales catalog to bridge innovation and procurement. Ijabs highlighted lump-sum financing to reduce compliance burdens for startups and strict eligibility rules excluding entities from countries incompatible with EU foreign policy. Shadow rapporteurs broadly supported the fast-track approach but diverged on scope: Jan Farský (EPP, Czechia) and Nicolás Pascual De La Parte (EPP, Spain) pushed for including prime contractors and first-tier subcontractors to ensure market uptake, while Julie Rechagneux (PfE) regretted the rejection of amendments for better coordination with the European Defence Agency and stronger member-state steering. Giorgio Gori (S&D, Italy) stressed cybersecurity criteria and the pilot's role for the future Competitiveness Fund. Elena Donazzan (ECR, Italy) called for simplicity, complementarity with NATO, and operational translation. Engin Eroglu (Renew, Germany) demanded parliamentary scrutiny of disbursed funds. Christian Ehler (EPP, Germany) warned against over-reliance on lump sums, noting legal restrictions for research institutes, and urged coherence with the upcoming European Competitiveness Fund.
Commission representative Dinka Dinkova (DG DEFIS) welcomed the speed, confirmed member states' central role in defining calls, and assured that primes would be involved in testing and demonstration, not as direct beneficiaries. She noted the €115 million pilot budget comes from redeployment without major impact on existing programs.
The SME-focused approach benefits defense startups and scale-ups by reducing administrative burden and ensuring access to funding, but may limit market uptake if prime contractors are excluded from direct participation. Prime contractors could face reduced opportunities to integrate innovations, potentially slowing the transition from prototype to procurement. Member states gain steering influence over calls but may need to coordinate with NATO and the EDA. Ukraine stands to benefit from linked procurement mechanisms, while associated third countries like Norway and Liechtenstein may access the program under strict eligibility rules.
Committees aim to adopt the report before summer recess, with trilogues expected to start swiftly after Council adopts its mandate.