Australia offers compensation for axed submarine deal — Analysis

Paris will receive only a fraction from a multibillion-dollar contract torn up in Canberra

Australia agreed to pay $589 million ($AU835 million) to French shipbuilder Naval Group as compensation for killing a significant submarine contract last year. This was part of the AUKUS pact between the United States, Britain and Australia. It is the latest attempt to end a diplomatic spat that began under the previous administration. 

The Prime Minister Anthony Albanese, who announced Saturday’s offer to reporters, said that the agreement would reduce tax dollars and allow him the chance to criticize Scott Morrison (ex-Prime Minister) for presidering over the matter. “the most wasteful government in Australia’s history.”

“This is a saving from the [AU]$5.5 billion that Senate estimates was told would result from that program,”Referring to the deal that went wrong with French company, the PM said, “The initiative is being taken.” “still represents an extraordinary waste from a government that was always big on announcement but not good on delivery.”

France signs major deal on Rafale warplanes, submarines

Albanese said that it would be a deal. “fair and equitable settlement”After a major uproar in Paris about the canceled sub-contract worth $66 billion (AU$90 Billion), it was revealed that Macron accepted the offer after talks with Macron.

Though Naval Group, a majority state-owned shipbuilder, was set to construct 12 submarines for Australia’s fleet, the three-way AUKUS agreement with the US and UK saw Canberra abruptly change course, instead looking to acquire subs from Washington. France quickly retaliated, recalling the ambassador of France to Australia. Macron claimed that Morrison had misrepresented the contract.

Macron was thanked by the Australian PM for his desire to repair ties and he expressed hopes of meeting him in person.

AUKUS sub-deal comes with high price tags for Australians

“I see a personal meeting between myself and President Macron in France as being absolutely vital to resetting that relationship, which is an important one for Australia’s national interests,”He said that he added “I’m looking forward to taking up President Macron’s invitation to me to visit Paris at the earliest opportunity.”

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