© EPA
Australia will have to pay up to A $ 5.5 billion (7 3.7 billion) to cancel the submarine deal with France. This was confirmed by Australian Defense Ministry officials in Parliament.
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Australian Prime Minister Scott Morrison purchased twelve French submarines in September 2016 worth about A $ 90 billion (approximately 60 60 billion). Canberra entered into a new alliance with the United States and the United Kingdom (AUKUS), resulting in the purchase of nuclear-powered submarines by the Australians.
The contract for French submarines with classic propulsion (diesel) is one with the Navy Group. Australian security officials said on Friday that talks were underway with a French defense contractor to end the deal. When asked by senators, the “final settlement” was confirmed to be close to $ 5.5 billion, but the exact amount has not yet been determined.
Finance Minister Simon Birmingham backed the decision to cancel the French agreement, which is “necessary for decades to come”. “We know the consequences will be huge,” he said.
The decision to terminate the agreement led to a diplomatic battle with France at the time.
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