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Sweden has signed an order for four frigates from French defence company Naval Group, in a deal aimed at strengthening the country’s military capabilities. The agreement was signed in Stockholm in the presence of French President Emmanuel Macron and Swedish Prime Minister Ulf Kristersson.

Sweden has accelerated defence spending since Russia’s invasion of Ukraine in 2022, which led the country to abandon its longstanding policy of military neutrality. European nations have also been boosting defence budgets amid growing concerns over security and uncertainty about the level of future U.S. support.

The deal, announced in May at a value of around $4 billion, is expected to triple Sweden’s air-defence capacity. The four frigates will be the largest ships in the Swedish Navy, with the first vessel scheduled for delivery in 2030. Macron said the agreement would strengthen Europe’s defence industry and its ability to take greater responsibility for regional security.

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German defense company Rheinmetall is seeking around €12 billion from the government to take control of the troubled F126 frigate programme, according to reports. The proposed deal would significantly raise the total cost of building six warships to nearly €14 billion, reflecting delays and rising expenses in the project.

The company’s naval division has reportedly outlined its terms after months of evaluation, potentially replacing Dutch shipbuilder Damen, which had been leading the programme. The revised plan includes an inflation adjustment clause and pushes the expected delivery of the first vessel to 2032—about four years later than initially scheduled.

Meanwhile, Germany is also considering alternative options, including purchasing smaller MEKO A-200 frigates from Thyssenkrupp Marine Systems at roughly €1 billion each. Analysts suggest this move could strengthen Berlin’s position in negotiations as it seeks to manage costs and timelines for its naval modernization efforts.

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