Naval Group and the government of Australia have reached what they call a “fair and equitable settlement to bring a conclusion to the Future Submarine Program”, following Australia’s decision to work with the United States and United Kingdom to procure nuclear-powered submarines.
Naval Group said it has worked closely with and assisted its partners and subcontractors in Australia and France and said “Naval Group pays tribute to all individuals, teams, and its partners who have worked and delivered on this program for more than five years. Naval Group also recognises the important work of those who contributed to the discussions leading to this agreement.”
The prime minister’s office of Australia said “the former government made the decision to terminate the contract on the basis of advice about capability requirements for the Australian Defence Force—advice that was accepted by Labor in opposition.
“We have reached a fair and equitable settlement of €555 million (around $830 million) with Naval Group. Now that the matter is resolved we can move forward with the relationship with France,” the government’s statement said. “Australia and France share deep historical ties of friendship, forged in common sacrifice in war. We are both vibrant democracies, committed to upholding human rights and fundamental values. We deeply respect France’s role and active engagement in the Indo-Pacific. Given the gravity of the challenges that we face both in the region and globally, it is essential that Australia and France once again unite to defend our shared principles and interests: the primacy of international law; respect for sovereignty; the rejection of all forms of coercion; and taking resolute action on climate change.”