European defense stocks are falling, with reports suggesting that Germany will abandon the frigate project.

Reports suggest that after Germany announced the decision to abandon plans to build a new type of warship, the stock prices of European defense companies have slightly declined. The Financial Times and the German magazine Der Spiegel reported that Berlin will give up the plan to build six F126 frigates. In Germany, Rheinmetall's stock price fell by 15%, Renk Group by 4.8%, and Hensoldt by 4.3%. In France, Thales and Dassault Aviation both fell by 2.4%. In Italy, Leonardo's stock price dropped by 4.2%. BAE Systems in the UK fell by 1.9%.