Australia agrees 555 million euro settlement with France's Naval Group: PM | World News - Hindustan Times
close_game
close_game

Australia agrees 555 million euro settlement with France's Naval Group: PM

AFP |
Jun 11, 2022 09:43 AM IST

Prime Minister Anthony Albanese said the French firm had agreed to a "fair and an equitable settlement" of 555 million euros (US$584 million) for ending the multi-billion-dollar contract.

Australia on Saturday announced a massive compensation deal with France's Naval Group for scrapping a landmark contract to build a fleet of diesel submarines.

Relations between France and Australia were on ice until this May, when centre-left leader Albanese was elected. (Photo by Wendell TEODORO / AFP)
Relations between France and Australia were on ice until this May, when centre-left leader Albanese was elected. (Photo by Wendell TEODORO / AFP)

Prime Minister Anthony Albanese said the French firm had agreed to a "fair and an equitable settlement" of 555 million euros (US$584 million) for ending the multi-billion-dollar contract.

Unlock exclusive access to the latest news on India's general elections, only on the HT App. Download Now! Download Now!

The agreement draws a line under a bitter spat that derailed ties between Canberra and Paris for the better part of a year.

In September 2021, then-Australian prime minister Scott Morrison abruptly ripped up the French contract, which was years in the making.

He announced that Australia would be buying US or British nuclear-powered submarines, a major shift for a country with little domestic nuclear capability.

The decision drew fury from French President Emmanuel Macron, who publicly accused Morrison of deceit.

Relations were on ice until this May, when centre-left leader Albanese was elected.

The submarine contract is the centrepiece of Australia's race to develop its military capabilities, as it fears the threat from a more bellicose China under President Xi Jinping.

The nuclear-powered submarines are likely to give Australia the ability to operate more stealthily and pose much more of a deterrent to China.

But there remains deep uncertainty about how quickly it can be implemented.

The first US or British submarines likely will not be in the water for decades, leaving a long capability gap as Australia's existing fleet ages.

 

 

Tell us what your First Vote will stand for in a short video & get a chance to be featured on HT’s social media handles. Click here to know more!

Get Current Updates on India News, Elections 2024, Lok sabha election 2024 voting live , Karnataka election 2024 live in Bengaluru , Election 2024 Date along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, May 24, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On