The European Commission said it will make available 115 million euros ($133 million) to small and medium European defence companies under a new funding tool dubbed "Agile".

The pilot aims to finance up to 30 projects from 2027, slashing grant-approval times to under four months to have new technologies ready for armed forces within three years, Brussels said.

"We want to create a culture of rapid doing," said Henna Virkkunen, EU commissioner for tech and security.

The war in Ukraine has shown the importance of developing and deploying new, cost-efficient weapons fast, the commission said.

Kyiv's ability to field cheap but effective battlefield tech like electronic jammers and interceptor drones, to counter Russia's invasion has shaken up a sector long known for its lengthy development times.

But defence start-ups in Europe -- which have boosted military spending in the face of a hostile Russia and wavering US security commitment -- have in the past lamented difficulties in securing investments.

The commission said the funding will go towards companies working on "disruptive defence innovations" such as "artificial intelligence, quantum and drones".

Ukrainian firms will be eligible to receive the money alongside competitors from the EU's 27 nations as well as Iceland, Liechtenstein, Norway and Switzerland.

The plan needs to be approved by the European Parliament and member states.