Dispute over billion-dollar deal: Australia compensates French submarine builders

Last year, Australia agreed to supply several nuclear submarines with the United States.

Dispute over billion-dollar deal: Australia compensates French submarine builders

Last year, Australia agreed to supply several nuclear submarines with the United States. That broke the deal with a French manufacturer - and caused a lot of anger in Paris. A payment should now appease France.

Australia pays the French shipbuilder Naval Group millions in compensation to end contractual disputes after a failed submarine deal. The new Australian Prime Minister Anthony Albanese announced that the company will receive 555 million euros to dissolve a multi-billion dollar contract to buy French submarines that has been in place for years. Albanese spoke of a "fair and just agreement". The submarine dispute had strained relations between Canberra and Paris for months.

Australia, the United States and Britain formed an Indo-Pacific alliance last September that includes building nuclear submarines for Australia. The fact that Australia then canceled an order for twelve diesel-powered French submarines caused outraged reactions in Paris.

French President Emmanuel Macron publicly accused then-Australian Prime Minister Scott Morrison of lying and even withdrew the French ambassador from Canberra. Things only calmed down when Albanese was elected Australia's new prime minister in May.

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