Australia to pay 555 million euros to the French Naval Group after giving up its order last year

A big check to settle the grudges. Australia on Saturday (June 11) unveiled a massive compensation deal with French submarine maker Naval Group, putting a financial end to a dispute that has soured relations between Canberra and Paris for nearly a year. New Australian Prime Minister Anthony Albanese said the French company had agreed to a “just and fair settlement” of 555 million euros, for the breach of the gigantic contract of 56 billion euros, which had caused a diplomatic crisis between Paris and Canberra last fall.

In September 2021, then-Australian Prime Minister Scott Morrison suddenly ended the French contract that had been in preparation for ten years. The head of government announced that his country would buy American or British nuclear-powered submarines, a major change for a country with weak nuclear capabilities.

Scott Morrison then drew the wrath of French President Emmanuel Macron who accused him of deception and recalled his Australian ambassador in protest.