Lyla Lindsey
France and Australia have historically shared strong diplomatic relations, with substantial commercial links and a keen interest in each other's culture. However, in 2021, France was enraged by Australia's decision to terminate a submarine deal worth A$90 billion. This deal was considered a 50-year marriage, creating opportunities for collaboration in defence planning, weapons development, communications, and intelligence sharing. The abrupt cancellation of the contract, without prior consultation, led to a breakdown of trust between the two nations, with French Foreign Minister Jean-Yves Le Drian calling it a stab in the back. This incident caused a significant diplomatic rift and negative public sentiment between France and Australia, leading to a period of tension and strained relations.
| Characteristics | Values |
|---|---|
| Reason for France's anger | Australia scrapped a submarine deal with France and instead entered into a trilateral security agreement with the US and the UK, called AUKUS. |
| France's loss from the deal | France lost a mega submarine deal worth A$90bn (£48bn) and the huge potential revenues from it. |
| France's reaction | France recalled its ambassadors to the US and Australia. French Foreign Minister Jean-Yves Le Drian said he was "angry and bitter" and that it was a "stab in the back". |
| France's other concerns | France stands to lose out strategically in the Indo-Pacific, where it holds significant interests, including overseas territories and troops. |
| France's awareness of the deal | The US and Australia claim that France was aware of the deal, but France maintains that it was kept in the dark and not consulted. |
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What You'll Learn
France loses a mega submarine deal
France is enraged over losing a mega submarine deal with Australia, a contract worth A$90bn (£48bn). The deal, which was signed in 2016, was for 12 conventional attack-class submarines to be built by French shipbuilder Naval Group.
The French government has called the new trilateral security agreement between the US, UK, and Australia a "stab in the back", with French Foreign Minister Jean-Yves Le Drian saying it was a "betrayal" of trust. Le Drian also expressed anger and bitterness about the breakdown of the deal, which has resulted in a significant loss of potential revenue for the French military industry. France is a major global weapons exporter, and this deal was expected to have a notable economic impact on its defence sector.
The French president, Emmanuel Macron, is facing a setback not just financially but also diplomatically. France has been working for years to strengthen its strategic presence in the Indo-Pacific region, where it holds significant interests, including overseas territories and nearly 2 million French citizens. The new security pact, known as AUKUS, underscores increasing concerns about China's growing influence in the region. While the US has welcomed the involvement of European countries in the Indo-Pacific, France feels blindsided by the deal and humiliated that it was not consulted or informed beforehand.
Australia's decision to opt for American nuclear-powered submarines over France's conventional diesel submarines was based on national security interests. Australian Defence Minister Peter Dutton stated that the American and British submarines had superior capabilities to the French version.
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France is kept in the dark about the new deal
France was kept in the dark about the new AUKUS deal between the US, UK, and Australia, which resulted in France losing a significant submarine contract with Australia. The French government claimed they were not consulted or informed about the deal, which they considered a stab in the back and a betrayal of trust. The deal had been in the works for years, and France had worked hard to secure the partnership with Australia, making it a setback for French diplomacy and causing a significant economic impact on the French defense sector. France also lost out strategically in the Indo-Pacific region, where it has significant interests, including overseas territories and troops.
The French Foreign Minister, Jean-Yves Le Drian, expressed his anger and bitterness about the new submarine agreement, stating that "this isn't done between allies." He also highlighted the loss of potential revenues for the French military industry and the breach of trust by the US, with whom France had been discussing a coherent and structured Indo-Pacific policy.
While the US and Australia claimed that high-ranking French officials were made aware of the changes, France still recalled its ambassadors to the US and Australia over the submarine deal. This indicates the level of frustration and disappointment felt by the French government about being excluded from the discussions and the impact on their relationship with these countries.
The cancellation of the deal with France, a major global weapons exporter, has also led to a focus on the rare willingness of the US to share advanced military technology with Australia, including nuclear-powered submarines and various missiles. This has further enraged the French, who feel humiliated and betrayed by their allies.
The deal has also brought up discussions about the role of European countries in the Indo-Pacific region, with the US and others emphasizing the importance of France as a vital partner in the region and seeking to deepen transatlantic cooperation. However, the sudden end to the French-Australian contract has complicated these relationships, and France is now looking to develop its own strategic and defense capabilities independently.
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The deal will have a significant economic impact on the French defence sector
France is a major global weapons exporter and the cancellation of the deal with Australia is expected to have a significant economic impact on the French defence sector. The deal with Paris had been in the works for years, with France set to provide Australia with 12 conventional attack-class submarines.
The French Foreign Minister, Jean-Yves Le Drian, expressed his anger and bitterness about Australia's new agreement, stating that "this isn't done between allies". He also highlighted the loss of potential revenues for the French military industry, while American arms manufacturers stand to benefit from the new deal.
The cancellation of the contract also impacts France's strategic presence and interests in the Indo-Pacific region, where France is the only European country with a presence. France has territories in the region, including New Caledonia and French Polynesia, and approximately 2 million French citizens and over 7,000 troops are based there.
The deal with Australia, known as AUKUS, has also caused diplomatic setbacks for France, particularly in its relationship with the US and the UK. France recalled its ambassadors to both countries, and there is a sense of betrayal and frustration regarding the lack of consultation and communication prior to the announcement of the new deal.
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France loses out strategically in the Indo-Pacific region
France is a major global weapons exporter, and the cancellation of the deal with Australia is expected to have a significant economic impact on the French defence sector. France has lost out on huge potential revenues and the strengthening of its strategic position in the Indo-Pacific region.
France is the only European country with a presence in the Indo-Pacific region, with nearly 2 million French citizens and over 7,000 troops in its overseas territories of New Caledonia and French Polynesia. France has been working with its allies to develop a "coherent and structured Indo-Pacific policy" to counter China's growing regional influence.
The cancellation of the contract with Australia is a setback for French diplomacy, which had worked for years to secure the partnership and strengthen its position in the region. France's foreign minister, Jean-Yves Le Drian, expressed his anger and bitterness over the new submarine agreement, stating that "this isn't done between allies".
The US has acknowledged the importance of France as a vital partner in the Indo-Pacific and has expressed a desire to deepen transatlantic cooperation in the region. However, the cancellation of the deal has damaged French interests and relations in the region, and France will need to reevaluate its strategic position.
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France recalls ambassadors to the US and Australia
France recalled its ambassadors to the US and Australia after Australia scrapped a $90 billion French conventional submarine purchase in favour of nuclear subs built with US technology. This was the first time France had recalled its ambassador to the US, according to the French foreign ministry.
French Foreign Minister Jean-Yves Le Drian said in a written statement that the French decision, at the request of President Emmanuel Macron, “is justified by the exceptional seriousness of the announcements” made by Australia and the United States. Macron has not commented on the issue.
The French diplomat said Australia never mentioned its will to shift to nuclear-powered submarines, including during a meeting between Macron and Australian Prime Minister Scott Morrison in Paris on June 15. The French ambassador to the US, Philippe Etienne, tweeted that the announcements are “directly affecting the vision we have of our alliances, of our partnerships and of the importance of the Indo-Pacific for Europe”.
The decision to recall the ambassador represents a shocking turnaround for France under Macron, who, after an increasingly bitter relationship with former President Donald Trump, warmly clasped hands with Biden at a G7 summit in June and confirmed that “America is back”. Macron has sought to strengthen France’s diplomatic footprint and role in European policy-making, and to rally France’s neighbours around his vision for a Europe less dependent on the US.
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Frequently asked questions
France is upset with Australia for choosing to enter into a defence pact with the US and UK, instead of honouring its previous contract for submarines with France.
France had signed a deal with Australia in 2016 to build 12 conventional attack-class submarines.
The US, UK and Australia have formed a trilateral security agreement called AUKUS. As part of the agreement, the US will share its nuclear-powered submarine technology with Australia, something it has only done with the UK in the past.
Australia's Defence Minister Peter Dutton said that the decision was based on national security interests. He said that the French version was "not superior to that operated by the United States and the United Kingdom".
France has called the decision a "stab in the back" and a "betrayal of trust". It has also said that the move will have a significant economic impact on the French defence sector and cause it to lose out strategically in the Indo-Pacific region.
