Germany will cancel its F126 frigate program, the largest warship project commissioned since World War II, opting instead for eight smaller Meko A-200 vessels. Defence minister Boris Pistorius informed industry leaders and MPs of the decision, marking a major reversal in Berlin's naval modernization plans.

The move delivers a significant setback to Rheinmetall, which expected to lead the €12.8bn contract. About €2bn in existing program costs will be written off. This procurement failure complicates Germany's push to become a European defence leader while spending €780bn on military overhaul through 2030.

Originally awarded to Dutch shipyard Damen Naval in 2020 for four vessels, the contract expanded to six frigates but faced delays and software issues. Anti-submarine warfare capabilities became more critical after Vladimir Putin's 2022 invasion of Ukraine, yet the project struggled with communication problems between German procurement officials and contractors.

Rheinmetall's €1.5bn acquisition of Naval Yards Lürssen was meant to support this shipbuilding expansion. Questions remain about the first F126 hull under construction at Wolgast shipyard. The switch to TKMS-built Meko frigates at roughly €1bn each reflects cost concerns that have frustrated German lawmakers.