The French naval group now wants to bill Australia after the submarine deal collapsed. “Australia terminated the contract out of convenience, which means we are not responsible,” company president Pierre-Eric Baumelier told the French newspaper. Le Figaro.
“It is an issue stipulated in the contract and requires payment of costs we have already incurred and in the future,” Baumelier told the newspaper. These included, for example, the costs of “infrastructure and information technology layoffs” and “regrouping of personnel.” “We will assert our rights,” Baumelet repeated.
“Treaty of the Century”
Australia had previously complained that working with Naval Group, which is partly owned by the French state, was years behind schedule and well above budget. In 2016, Canberra signed a contract to purchase 12 diesel-powered submarines. The deal has been dubbed the “Decade of the Century” and was valued at A$50 billion. The contract was later revalued at 56 billion euros.
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