Dispute over the F126 frigate project: Damen shipyard demands 4.7 billion euros from Germany

Defense Minister Pistorius stopped a billion-dollar frigate project with the words “Better a hard end than a permanent hang-up.” The responsible shipyard in the Netherlands sees a breach of contract by the federal government.

In the dispute over the stopped F126 frigate project, the Dutch shipyard Damen is demanding around 4.7 billion euros from the Federal Republic of Germany. This emerges from a letter from the Gauweiler law firm to the Bundestag's budget and defense committees, which was seen by Reuters. The sum is contractually agreed payment and indemnity claims due to the federal government's breach of contract. Additional claims for damages are currently being examined, the letter from lawyer Peter Gauweiler said.

The shipyard accuses the federal government of being responsible for the project delays. The federal government exercised the contractual option for two further frigates in June 2024, knowing of the delays. The sudden termination of the project was therefore a “surprise decision” and solely politically motivated. Gauweiler is also asserting official liability claims against Defense Minister Boris Pistorius on behalf of his client. He caused the BAAINBw, the procurement authority subordinate to him, to terminate the contract for unrelated reasons.

Pistorius canceled the project, citing an explosion in costs to almost 18 billion euros and massive delays. “It’s better to have a hard end than a permanent hang-up,” said the SPD politician. The reason for the termination was an unacceptable condition from the Damen shipyard. The latter demanded to be released from all claims for damages. According to the minister, the project has already cost the federal government around 2.3 billion euros. The federal government is now planning to purchase eight MEKO A-200 frigates from the Thyssenkrupp subsidiary TKMS instead.