Germany cancels €10 billion F126 frigate programme, opts for smaller warships
The German Defence Ministry announced the termination of the multi-billion-euro F126 frigate project and will instead procure eight MEKO A-200 vessels, citing delays and cost risks.
Berlin – The Federal Ministry of Defence confirmed it will not proceed with the construction of six F126-class frigates, a programme that had been budgeted at around €10 billion. The decision follows persistent schedule overruns, rising cost estimates and uncertainties surrounding a change of main contractor, the ministry said in a statement.
Instead, the ministry plans to acquire eight smaller MEKO A-200 frigates, primarily for anti-submarine warfare, from German shipbuilder TKMS, pending parliamentary approval. The MEKO design is already in production for export markets, allowing a faster delivery schedule, with the first vessel expected by 2029.
The cancellation marks a shift from the original plan to build the navy’s largest combat ships, which were to be built by Dutch yard Damen Schelde Naval Shipbuilding before the contract was transferred to Rheinmetall-owned Naval Vessels Lürssen. Shares of Rheinmetall fell after the announcement.
"The Defence Ministry has decided not to proceed with the construction of a total of six F126-class frigates," the ministry said, adding that the move was taken to avoid further cost escalation and risks linked to a contractor change.
The move is expected to free up more than €2 billion already spent on the stalled project, although the exact financial impact remains to be clarified.