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Saturday June 11, a compromise was found between Australia and France, following the canceled contract for an order of French submarines. The Naval Group company will receive 555 million euros from Australia.
After nine months of submarine crisis between France and Australia, a compromise was found on Saturday June 11. Australia will pay 555 million euros to compensate the French company Naval Group and to settle the breach of contract. In September 2021, Australia had reneged on its commitment to buy 12 French submarines. “I consider a meeting with President Macron in France to be absolutely essential.” said Anthony Albanese, Australian Prime Minister, who wants to restore good relations with France.
The 555 million euros in compensation represents less than one percent of the initial contract, which amounted to 56 billion euros. This sum should allow the French company to pay the first expenses incurred in the project. Diplomatic relations between France and Australia had been strained since this breach of contract. Emmanuel Macron had accused former Australian Prime Minister Scott Morrison of deception.
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