Australia reaches settlement with France over scrapped submarine deal

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  • Australia last year canceled a multi-billion dollar order for submarines with French military shipyard Naval Group and instead opted for an alternative deal with the United States and Britain.
  • The move angered Paris and caused an unprecedented diplomatic crisis.
  • Australian Prime Minister Anthony Albanese said at a news conference in Sydney on Saturday that his government had reached a “fair and equitable” agreement with the Naval Group.

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Australia’s new Labor-led government has reached a 555 million euro ($583.58 million) deal over a controversial decision to scrap the French submarine deal last year, a move from Canberra to help mend the rift between the two countries. Will get

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Australia last year canceled a multi-billion dollar order for submarines with French military shipyard Naval Group and instead opted for an alternative deal with the United States and Britain.

The move angered Paris and caused an unprecedented diplomatic crisis. It has also angered China, a major emerging power in the Indo-Pacific.

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Australian Prime Minister Anthony Albanese said at a news conference in Sydney on Saturday that his government had reached a “fair and equitable” agreement with the Naval Group.

The cancellation of Canberra’s last year’s order for a new conventional submarine fleet with Naval Group – valued at $40 billion in 2016 and estimated to cost much more today – was signed by the previous government in a tripartite agreement with the United States and Britain. The security partnership came after it was signed.

The tripartite deal was for a fleet of nuclear powered submarines with US and British technology. Albanese said the agreement would allow Australia to move forward in its relationship with France.

“Given the gravity of the challenges we face in the region and globally, it is essential that Australia and France unite once again to defend our shared principles and interests,” Albanese said in a separate statement.

Australia, the United States, France and its allies have expressed concern about China’s growing influence in the Pacific, a region that has traditionally been under their control. Their concerns escalated after China and the Solomon Islands signed a security deal earlier in the year.

“We deeply respect France’s role and active engagement in the Indo-Pacific,” Albanese said. He said he looked forward to receiving the invitation of French President Emmanuel Macron to visit Paris.

Credit: www.cnbc.com /

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