Relations between France and Australia deteriorated after Canberra's decision to unilaterally cancel the construction program of 12 Attack Class submarines worth Aus$90 (US$70 billion), where with the declaration of the AUKUS defense pact, Australia has launched a new program in the form of procuring 8 nuclear-powered submarines. .
And apparently in the era of the leadership of the New Prime Minister of Australia, Anthony Albanese, Canberra seems to have softened and wants to open up better relations with France, this is evidenced by Albanese's decision to pay compensation for the losses suffered by the Naval Group shipyard, France. With this decision, it is hoped that the contract disputes that have been going on for a long time will end.
Quoted from aljazeera.com (11/6/2022), Prime Minister Anthony Albanese said on Saturday that the Naval Group had agreed a "fair and equitable settlement" of 555 million euros (Aus$830 million) for Australia ending the submarine contract worth billions of dollars over 10 years.
"This was achieved following the discussions I had with President [Emmanuel] Macron and I thank him for those discussions and the friendly way we are rebuilding better relations between Australia and France," he said.
French Defense Minister Sebastien Lecornu said: "This allows us to turn the page in our bilateral relationship with Australia and look to the future." He added, "Just because the past government (ex PM Scott Morrison) didn't keep its promises, doesn't mean we have to forget strategic relationships," he said.
So far, Australia has disbursed funds worth Aus$3.4 billion for the Attack Class submarine program, and it has been considered a cost that must be sacrificed, because Australia is projecting to procure nuclear submarines, which Australia's decision cannot be separated from potential threats in the future. ahead with China.
About the Attack Class diesel electric submarine which was canceled by Australia. This submarine was built using technology from the Naval Group, France, while the submarine development process was carried out in Australia. Referring to its history, through intense competition, the Australian Navy officially chose the Naval Group in 2016.
The contract with Naval Group includes the construction of 12 submarines which will be delivered first in 2030. The agreed value is Aus$50 billion for the procurement of 12 submarines. Later the acquisition cost skyrocketed to Aus$90 billion, equivalent to US$70 billion.
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