Dutch shipbuilder Damen is seeking €4.7 billion from Germany following Berlin’s decision to terminate the F126 frigate programme, according to a letter from the law firm Gauweiler to the Bundestag’s Budget and Defence committees, cited by Reuters. The company intends to pursue payment and indemnity claims against the German Defence Ministry, while additional compensation claims are still being examined.
Lawyer Peter Gauweiler also told the Süddeutsche Zeitung that possible breaches of official duties by German Defence Minister Boris Pistorius should be investigated. The claim marks a significant escalation in the dispute over the cancellation of the warship programme, which had already become a major source of disagreement over rising costs and delays.
The German Defence Ministry announced in June that it was withdrawing from the F126 project after costs had risen to almost €18 billion and delivery schedules had fallen substantially behind. The first frigate, which was originally expected to be delivered with an initial operational capability in mid-2028, was to be followed by the remaining vessels by 2033. By the time of the cancellation, those deadlines were considered unrealistic.
Pistorius defended the decision, saying in the summer: “Better a hard ending than a permanent state of limbo.” According to the minister, the final trigger for terminating the contract was a condition imposed by Damen that Berlin regarded as unacceptable. The shipbuilder had demanded to be released from all claims for damages, Pistorius said.
The project had already cost the German government around €2.3 billion, according to the minister. Pistorius rejected allegations that the government had breached the law. In July, he described statements made on behalf of Damen as a “prophylactic counterattack ahead of any further development”.
Pistorius also said that the German government could itself have claims for damages amounting to €2.3 billion. “Without wanting to anticipate any proceedings, it is also publicly known that Damen knows that there could be claims for damages of €2.3 billion on our part,” he said.
Damen disputes the German government’s account of responsibility for the programme’s failure. The shipbuilder argues that the delays were partly the responsibility of the federal government itself. According to the company, Berlin exercised a contractual option in June 2024 to order two additional frigates despite already being aware of delays affecting the project.
Damen has characterised the subsequent termination as a “surprise decision” and said it was motivated solely by political considerations. The company’s €4.7 billion claim includes payment and indemnity demands, while its lawyers are continuing to examine whether further compensation claims should be brought.
The dispute now centres not only on the financial consequences of ending the frigate programme, but also on competing claims over who bears responsibility for its delays and eventual cancellation.
