© Reuters
Australia can expect a bill as it abandons its planned purchase of submarines in France. French defense conglomerate Naval Group has announced that a “detailed” cost statement will be sent to Australians within weeks.
Source: Belgian
Australia entered into agreements in 2016 on the purchase of twelve Naval Group submarines. This so-called “decade of the century” includes an amount of 31 billion euros. Australia later complained about delays and cost overruns.
The Australians withdrew from the project after secret negotiations with the United States and the United Kingdom. The three countries have entered into a new partnership that makes the purchase of French submarines superfluous.
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France responded fiercely and spoke of a stab in the back. Naval Group CEO Pierre-Eric Baumelet told Le Figaro newspaper that the costs incurred will be recovered from the Australians. He said his company was surprised by the agreement between Australia, the United Kingdom and the United States.
Baumelier concluded that his company is clearly not at fault now that the Australians have suddenly decided to back out of the billion-dollar deal. He said the contract includes provisions on how to handle such a situation.
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