The Australian government has agreed to pay France’s Naval Group a settlement amount of $580 million (A$830 million) over a submarine contract scrapped by the country in favor of their AUKUS alliance with Washington and London.
Prime Minister Anthony Albanese declared that the settlement amount was “fair and equitable” and, furthermore, forged a pathway for improved relations between Australia and France.
“I intend to have an honest relationship with France–one that is based upon integrity and mutual respect,” Albanese during a Saturday news conference.
The Australian PM remained tight-lipped on any further details regarding the agreement and promptly pivoted to attacking his “wasteful” predecessor, former Australian Prime Minister Scott Morrison.
“Tens of billions of dollars wasted across a range of programs that have resulted of course in–have contributed to–the $1 trillion of debt that the incoming Labor government has inherited,” Albanese said.
I’m #LIVE in Sydney with an announcement. Tune in. https://t.co/QgxlKoqink
— Anthony Albanese (@AlboMP) June 11, 2022
The Australian PM clarified to reporters that the agreement was between the new government and Naval Group. Morrison’s government did not finalize an agreement with the French defense contractor.
5 September 2021, 21:06 GMT
Then-PM Morrisson argued in September 2021 that France should have been well aware of Canberra’s “deep and grave” concerns regarding whether the French-made attack submarines from a 2016 agreement would satisfy Australia’s “strategic national interest.”
Around the same time, France had blasted the “unpredictability” of the Australian government, with then-Foreign Minister Jean-Yves Le Drian declaring that such a move forces Paris to reexamine the strength of its alliance with Canberra.
French ambassadors were withdrawn from both Australia and the US over the matter.
by Evan Craighead
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