Submarines: Australia breaks "contract of the century" with France

Emmanuel Duteil, edited by Clément Perruche 7:44 am, September 16, 2021

Australia forged this Thursday a strategic partnership with the United Kingdom and the United States.

Consequence: Australia canceled its order for French submarines with conventional propulsion, worth 90 billion euros.

The United States will supply Canberra with nuclear-powered submarines.

It was a great victory for the French naval industry.

In 2016, Jean-Yves Le Drian, the Minister of Foreign Affairs, welcomed the signing of the "contract of the century", namely the order of twelve French conventionally powered submarines by Australia.

But the order, for a total amount of 31 billion euros at the signing, was canceled this Thursday by Australia, which will be supplied from its American ally.

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Partnership with the United States

On Thursday, Australia, the United Kingdom and the United States announced the creation of a security partnership in the Indo-Pacific zone to face the Chinese threat.

This partnership includes the delivery of nuclear submarines by the United States to Canberra.

Immediate consequence of this spectacular announcement: Australia has broken the gigantic contract signed with France for the delivery of submarines.

A hard blow for Naval Group and the entire French industry.

Stupor on the French side

Faced with this ubiquitous situation, Wednesday, in the French ranks, we did not hide our astonishment.

Even if this contract has often been attacked, nobody expected a turnaround of this magnitude, especially since work has already started on site.

It is also a huge blow to Naval Group, the company that builds the

conventionally powered

Attack-

class submarines

on behalf of Australia, which has more than 300 employees.

Contracts with Australian subcontractors have also been signed.

Naval Group had in fact committed that 60% of the value of the contract will go to Australians.

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France, which sees a historic contract escaping its naval industry immediately castigated a "regrettable decision" and "contrary to the letter and the spirit of the cooperation which prevailed between France and Australia".