Australia will pay 555 million euros to Naval Group, a French industrial group, for breach of contract

This is undoubtedly the epitome of a serious diplomatic crisis. On Saturday, June 11, Australian Prime Minister Anthony Albany announced that Australia would pay 555 million euros in compensation to the business navy for funding the French submarine issue.

The majority was owned by the French state and accepted by the French group with a 35% stake in Thales. “Reasonable and Reasonable Solution” 555 million euros, the announcement of the new head of government, the collapse of a major agreement between Paris and Canberra last autumn that caused a diplomatic crisis.

A press release issued on Saturday said the naval team had also signed “A Fair Deal Ends Australia’s Future Submarine Project” With Canberra, without providing further details. The group did not specify an amount in its short press release, but indicated that it did “With” Its French and Australian partners and subcontractors in their efforts. Finally, he thanked those who advanced “More than five years” The project was eventually abandoned.

“Look forward”

For his part, French Armed Forces Minister Sebastin Lெகgorn announced on Saturday “take action” Of this agreement. “This agreement is important because it will allow us to open and look forward to a new page in our bilateral relationship with Australia.”The minister told reporters in Singapore.

The CFDT, the first trade union body of the Navy Group, sees this as a happy ending. “The good news is that this is going to end much sooner than going to a trial that will last for years.”, Judged by David Robin, a federal union representative in Cherbourg on the channel. Since the conclusion of the contract, “We’re back well” And “We are not disappointed with the export deals to countries like Brazil, India and Malaysia.”He added.

In September 2021, The then Prime Minister of Australia Scott Morrison abruptly ended the call “Agreement of the Century”A contract In 2016, it was approved to acquire twelve French submarines for A $ 50 billion (approximately ில்லியன் 35 billion at the time), of which about ில்லியன் 8 billion was provided to the Navy and French companies.

The first delivery is expected by 2030, the largest security deal ever awarded by Australia in lieu of its fleet. The budget then reached $ 90 billion (ில்லியன் 56 billion).

Uncertainty about device reception

But Mr. Morrison finally announced that his country would buy US or British nuclear-powered submarines, a major change for a state with weaker nuclear capabilities. The decision came within the framework of the Aukus military alliance signed between Australia, the United Kingdom and the United States.

The head of the Australian government was angered by French President Emmanuel Macron, who betrayed him. The leader of the Australian Labor Party, Mr. Relations between the two countries remained icy until the Albanese elections in May.

Thank you for the good way to restore relations between Australia and France. The latter clarified that this settlement occurred after consultation with Macron. The Prime Minister of Australia said “Is eager to answer the call [lui] President Macron made [se] Go to Paris at the first opportunity. In all, their prime minister said the failure of the French submarine deal would cost Australian taxpayers $ 2.4 billion.

An aging navy

The submarine deal is central to Australia’s defense strategy against China’s growing influence in the region under President Xi Jinping. Nuclear-powered submarines will allow Australia to operate in a more stealthy and defensive manner against China.

But there is great uncertainty as to when Australia will own these devices. The first American or British submarine is unlikely to be in service for decades, leaving a vacuum for Australia, as its current fleet ages.

Supplier selection will have significant economic and strategic implications, bringing the Australian Navy closer to the chosen nation. Peter Dutton, the former defense minister and current opposition leader, said this week that he had decided to receive supplies from the United States, an unusual expression of the sensitivity of the ongoing negotiations.