German Navy halts F126 frigate program over cost concerns

The German government has paused the construction of the F126 frigate class, citing a lack of funding and significant cost overruns. The original plan called for six ships at an estimated €10 billion, but delays and budget issues could push total costs above €18 billion. The defence ministry is now considering purchasing eight Meko‑200 anti‑submarine vessels from domestic shipbuilder TKMS instead of proceeding with the F126s, pending parliamentary budget committee approval.

The Dutch contractor Damen Schelde Naval Shipbuilding failed to meet schedule and budget requirements, leading to the cancellation of potential compensation claims. Analysts note that the decision caused a sharp decline in the share price of Rheinmetall, Germany’s largest weapons manufacturer, which fell to roughly half its October peak. Polish media described the move as the biggest failure of the German Navy, highlighting concerns over Germany’s maritime strength.