Germany cancels flagship F126 frigate programme after €2.3bn sunk, buys smaller TKMS ships

Cancellation after years of delays

On 24 June 2026, German defence minister Boris Pistorius announced the termination of the F126 frigate programme, the largest naval procurement project in Germany’s post‑war history. The original order for six ships had been placed with the Dutch shipbuilder Damen Schelde Naval Shipbuilding (DSNS) in 2020, but the contractor repeatedly missed deadlines and blew past its budget. A possible transfer of the project to Rheinmetall’s naval division NVL would have lifted the total bill to €18.8 billion, up from a planned €10 billion.

Better a hard end than a permanent stalemate. We cannot afford that, neither financially nor time-wise. The navy urgently needs new frigates that enable it to hunt submarines.

Financial scale and replacement plan

More than €2.3 billion in taxpayer money had already been spent with no vessel delivered. The defence ministry said it is examining damage claims against DSNS, but noted that switching to NVL would have required waiving those claims. Instead, the government will purchase eight smaller MEKO A‑200 frigates from Thyssenkrupp Marine Systems (TKMS) at a total cost of €11.6 billion. The first four ships are priced at €6.3 billion, with an option for four additional hulls at €5.3 billion if exercised by the end of 2026. The earlier scheme, announced in March, had foreseen only four interim vessels.

Great news, certainly for us.

Political and regional fallout

Opposition politicians were scathing. Dietmar Bartsch, budget spokesman for the Left Party, said warnings had been ignored and called the episode “an expensive embarrassment”. Green Party defence spokesperson Robin Wagener argued the minister had hesitated too long.

It is actually irresponsible that the minister hesitated so long to make this decision. … It is very painful that these billions have now been thrown away. But it is better to make a clear cut at some point than to continue pouring more money into a project that ultimately doesn’t lead to the goal.

Regional leaders in Mecklenburg‑Vorpommern demanded that the Peene‑Werft yard in Wolgast, now owned by Rheinmetall, be included in the new build programme. The state’s CDU chief Daniel Peters called the cancellation a hard blow for Vorpommern, while minister‑president Manuela Schwesig said she was in direct talks with Pistorius to secure a role for the yard.

Market reaction

Shares of Rheinmetall fell as much as 20 % on the day, wiping more than €11 billion from the company’s market capitalisation. TKMS stock, by contrast, rose 14 % as the group cemented its position as Germany’s dominant surface‑combatant builder.

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