Defence contractor Rheinmetall has tabled a €12bn offer to take over Germany’s stalled F126 frigate programme. After six months of negotiations, its newly created naval unit proposes to assume responsibility for building six multirole frigates previously led by Dutch shipyard Damen. The deal would shift the project’s control from a foreign contractor to a domestic defence group.

Berlin halted payments to Damen after software glitches and friction with procurement officials, leaving roughly €2bn already spent. Rheinmetall’s proposal adds an inflation‑linked clause that ties the final price to delivery milestones, pushing the substantial total taxpayer burden to about €14bn. The first vessel, once slated for 2028, now faces a 2031‑2032 delivery window, contingent on eased certification rules.

If approved, the contract would be Rheinmetall’s largest ever, following its March acquisition of shipbuilder Naval Vessels Lürssen, a former subcontractor on the frigates. Lawmakers are expected to scrutinise the extended timeline and the request to relax certification, while the defence ministry simultaneously negotiates up to eight €1bn MEKO A‑200 frigates as a backup. The outcome will set the fiscal scale of Germany’s rearmament push.