Germany is preparing to overhaul a major naval procurement programme after Defence Minister Boris Pistorius reportedly backed plans to replace the country’s ambitious F-126 frigate project with a fleet of smaller warships, a move that could reshape the future of the German navy while raising questions about billions of euros already invested.
According to reports in German media, the government is considering abandoning plans for the F-126 frigate, a vessel designed to become one of the largest frigates in the world. The project has already consumed an estimated €2.3 billion to €2.4 billion in development and procurement costs, according to members of the German Bundestag.
The proposed change has triggered a strong reaction in financial markets. Shares of thyssenkrupp Marine Systems (TKMS) climbed sharply after reports emerged that the company could benefit from a new order for smaller frigates. At the same time, shares in Rheinmetall fell as investors assessed the potential impact of the policy shift.
The F-126 programme was launched during the tenure of Ursula von der Leyen when she served as Germany’s defence minister. In 2020, the contract was awarded to Dutch shipbuilder Damen Shipyards Group. Following delays and operational challenges, German shipbuilder Lürssen Naval Vessels, later acquired by Rheinmetall, was placed in charge of the project in 2025.
Under the revised proposal, Germany would instead purchase eight MEKO A-200-class frigates from TKMS. The vessels are significantly smaller than the F-126 design. The planned F-126 would have measured 166 metres in length with a displacement of 10,500 tonnes, while the MEKO A-200 frigates are approximately 120 metres long and displace around 4,200 tonnes.
Although smaller in size, the new proposal would increase the total number of ships acquired. Earlier plans called for six frigates, while the revised strategy could see the navy receive eight vessels. Reports indicate that each ship could cost around €1.6 billion, though officials expect costs to decline in later production phases.
German naval leadership is reported to support the move, viewing a larger number of smaller ships as a more flexible option for future security operations.
The debate comes as Germany considers a greater maritime role in international security missions. Berlin has been discussing potential cooperation with the United Kingdom and France on safeguarding shipping routes through the strategically important Strait of Hormuz following tensions linked to the conflict involving Iran.
Germany has already dispatched the frigate Fulda and support vessel Mosel to the Middle East, carrying about 140 Bundeswehr personnel. Any future operation in the region would likely involve close coordination with allied naval forces, including those led by France.
A recent public opinion survey found that a majority of Germans would support a Bundeswehr mission in the Strait of Hormuz if a lasting ceasefire remains in place, reflecting growing attention on the country’s expanding naval responsibilities.
