Finance
German budget committee green-lights TKMS frigates deal, say sources
Published by Global Banking & Finance Review®
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Germany's budget committee approves the purchase of MEKO A-200 frigates from TKMS, allocating €50M for delivery by 2029, amid strategic defense shifts.
BERLIN, Jan 28 (Reuters) - Germany's budget committee approved a preliminary contract to purchase MEKO A-200 class frigates from warship builder TKMS on Wednesday and will release 50 million euros ($59.70 million) for them, according to two committee members.
After a years-long delay in the purchase of the originally planned F-126 frigates, the budget committee last year approved 7.8 billion euros for an alternative procurement strategy.
The funds released on Wednesday will be used to finance so-called delivery hedging instruments, which are intended to ensure the delivery of the first ship by December 2029.
Sources familiar with the project earlier told Reuters that at least three MEKO frigates are involved, which would each cost around 1 billion euros and are less expensive than the F-126.
The MEKO A-200 is significantly smaller, at around 4,000 tons, compared with the F-126, at approximately 10,000 tons, and has limitations, such as helicopter embarkation capabilities.
However, given the time constraints due to the Russian threat, the navy considers these limitations acceptable.
($1 = 0.8375 euros)
(Reporting by Markus Wacket, Writing by Miranda Murray, Editing by Madeline Chambers)
A frigate is a type of warship that is typically smaller than a destroyer and is used for various naval operations, including escorting larger vessels and anti-submarine warfare.
A defense budget is a financial plan that outlines the allocation of funds for a country's military and defense-related expenditures.
The MEKO A-200 class frigates are significant for their advanced capabilities and are designed to meet modern naval warfare requirements, providing flexibility and efficiency.
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