Australia to compensate France after ditching billion-dollar submarine deal

Published June 11, 2022 09:35 PM IST

Australia recently unveiled a substantial compensation agreement with French submarine manufacturer Naval Group. The agreement ended the contract dispute, which strained relations between Canberra and Paris for nearly a year. Australian PM Albanese said the French firm had agreed to a ‘fair and equal settlement’ of 555 million euros. Controversy broke out when Australia ended its decades-old multi-billion-dollar submarine deal. The quarrel led to leader-level indictments and threatened torpedo talks over the EU-Australia trade deal. The French defense minister said the compensation agreement would ‘allow us to turn a page on Australian relations and look to the future’. The Australian PM has said he will be traveling to France soon to ‘reset’ the relationship, surrounded by ‘beautiful’ tensions.

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