Germany cancels €18 bn F126 frigate programme

German Defence Minister Boris Pistorius announced that the multi‑billion‑euro F126 frigate programme will be terminated. The project, launched in 2020 to build six large frigates for the navy, has already absorbed €2.3‑2.4 bn of public money, but cost estimates have ballooned from about €5 bn to more than €18 bn, with serious delays and technical risks. The government will instead procure eight smaller MEKO A‑200‑DEU frigates from German shipbuilder TKMS, at an estimated €1.6 bn per vessel and a total cost of roughly €12 bn. The cancellation ended a planned switch of the prime contractor from Dutch shipyard Damen to German Lürssen/Naval Vessels Lürssen (now owned by Rheinmetall). Rheinmetall’s shares fell 16‑17 % on the news. The Bundestag’s budget committee approved the move, and the decision is framed as necessary to maintain NATO‑required anti‑submarine capabilities while avoiding a costly “hang‑up” on the original F126 design.