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German minister: cost of ditched F126 frigate project already €2.3 billion - Finance news and analysis from Global Banking & Finance Review
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German minister: cost of ditched F126 frigate project already €2.3 billion

Published by Global Banking & Finance Review

Posted on June 24, 2026

1 min read

· Last updated: June 24, 2026

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German Minister Reveals €2.3 Billion Already Spent on F126 Frigate Project

German Defence Minister Discusses F126 Frigate Project Expenditure

Project Costs and Decision to Halt

BERLIN, June 24 (Reuters) - German Defence Minister Boris Pistorius said continuing the landmark F126 frigate project would only result in disproportionately high costs and delays, adding that a good €2.3 billion had already been spent on the plans, which he has ditched.

Minister's Statement on Project Termination

"Better to have a tough ending than a drawn-out state of limbo," Pistorius said, adding he was examining claims for damages, though probably with little chance of success.

Reporting and Editorial Credits

(Reporting by Holger Hansen, writing by Madeline Chambers, editing by Thomas Seythal)

Key Takeaways

  • The F126 project—Germany’s largest naval procurement endeavour—has been terminated after cost estimates ballooned and construction delays materialized; around €2.3 billion has already been invested and likely will be written off. (sueddeutsche.de)
  • Continuing the project was projected to raise total spending beyond €18 billion, prompting the decision to cut losses now to avoid further financial and timeline risks. (sueddeutsche.de)
  • As a fallback, Berlin plans to acquire up to eight smaller MEKO A‑200 frigates from TKMS to meet urgent anti-submarine warfare needs more rapidly and cost‑effectively. (es.investing.com)

References

Frequently Asked Questions

How much has Germany spent on the F126 frigate project?
Germany has already spent around €2.3 billion on the F126 frigate project.
Why was the F126 frigate project cancelled?
The German Defence Minister said the project would only lead to high costs and further delays, making cancellation the better option.
Is Germany seeking damages after cancelling the F126 frigate project?
The Defence Minister is examining claims for damages, but considers the chances of success to be low.
Who made the decision to end the F126 frigate project?
German Defence Minister Boris Pistorius made the decision to end the F126 frigate project.

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