The Australian government has agreed to pay $835 million to French submarine contractor Naval Group over the controversial cancelled contract to build 12 submarines.
Prime Minister Anthony Albanese announced the settlement on Saturday making it clear that the way the former Morrison government handled the cancellation of the $90 billion deal “has caused enormous tension in the relationship between Australia and France”.
“This is a fair and an equitable settlement which has been reached. It follows, as well, discussions that I’ve had with President [Emmanuel] Macron and I thank him for those discussions and the cordial way in which we are re-establishing a better relationship between Australia and France,” he said.
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