German Defence Minister Pistorius Cancels Cost‑Overrun F126 Frigate Project

Defence Minister Boris Pistorius announced the termination of the F126 frigate programme, which had aimed to deliver six large warships for the German Navy. After years of delay, the project had already absorbed about €2.3 billion, and forecasts warned that total costs could soar to over €18 billion from an original €10 billion estimate. The ministry will replace the cancelled ships with eight smaller MEKO A‑200 (F128) frigates built by TKMS, with an initial four‑ship order worth roughly €6.3 billion and a further four‑ship option at about €5.3 billion.

The shutdown has intensified criticism of Germany’s defence procurement system. IG Metall demanded that all German shipyards and suppliers be involved in the new build, with union spokesman Jürgen Kerner noting, “Pistorius pulls the emergency brake, now the responsibility is to utilise German expertise.” The decision also rattled markets: Thyssenkrupp shares fell 6.9 % and Rheinmetall’s stock plunged after the cancellation. The episode represents a major financial loss for taxpayers and raises doubts about the feasibility of future large‑scale defence projects.