Home Australia Federal Budget 2024: Albo’s olive branch to France after the Australian government backed out of a billion-dollar submarine deal

Federal Budget 2024: Albo’s olive branch to France after the Australian government backed out of a billion-dollar submarine deal

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Scott Morrison (centre, with Boris Johnson on the left and Joe Biden on the right) turned his back on France to sign the AUKUS deal with the UK and US, which will deliver eight nuclear-powered submarines by the 2050s at a cost of 368 billion dollars.

The Australian government has extended a $21 million olive branch to France after abandoning a massive submarine deal with the country in favor of signing the AUKUS deal.

Treasurer Jim Chalmers revealed plans for a new ‘Australia-France Roadmap’ to establish a defense and security pact in the Indo-Pacific region in Tuesday night’s Federal Budget.

The $20.7 million spending commitment comes three years after Australia sensationally pulled out of a $90 billion submarine deal with France.

Scott Morrison turned his back on France to sign the AUKUS deal with the UK and US, which will deliver eight nuclear-powered submarines by the 2050s at a cost of $368 billion.

Scott Morrison (centre, with Boris Johnson on the left and Joe Biden on the right) turned his back on France to sign the AUKUS deal with the UK and US, which will deliver eight nuclear-powered submarines by the 2050s at a cost of 368 billion dollars.

But Australia's relations with France have clearly thawed under the government of Anthony Albanese (left, alongside French President Emmanuel Macron), and the two countries have now committed to working together in the Indo-Pacific.

But Australia’s relations with France have clearly thawed under the government of Anthony Albanese (left, alongside French President Emmanuel Macron), and the two countries have now committed to working together in the Indo-Pacific.

French President Emmanuel Macron accused Morrison of lying to him, while then-French Foreign Minister Jean-Yves Le Drian compared it to “a stab in the back.”

The Australian government eventually agreed to pay French shipbuilder Naval Group $835 million in compensation for withdrawing from the deal.

But Australia’s relations with France have clearly thawed under Anthony Albanese’s Labor administration, and the two countries have now committed to working together in the Indo-Pacific.

“The roadmap sets out a new agenda for bilateral cooperation on defense and security, resilience and climate action, and education and culture,” Tuesday’s budget documents state.

While the word China is not mentioned, it is clear that the new roadmap is designed to further counter the communist country’s influence in the region.

It will create a new Australia-France Center of Excellence in the Indo-Pacific, which will include a specific curriculum to “support academic and professional engagement in security and defense trends to shape policy formulation to respond to the needs of the Indo-Pacific”.

The spending commitment of $20.7 million in the Indo-specific will allow both countries to cooperate on defense and security in the region. Pictured: Anthony Albanese (left) greets French President Emmanuel Macron ahead of their bilateral meeting during the G20 Leaders Summit in 2023.

The spending commitment of $20.7 million in the Indo-specific will allow both countries to cooperate on defense and security in the region. Pictured: Anthony Albanese (left) greets French President Emmanuel Macron ahead of their bilateral meeting during the G20 Leaders Summit in 2023.

The roadmap will also promote cooperation on climate action in the region, including the establishment of an annual Hawke-Rocard Medal for outstanding achievements in protecting the Antarctic environment.

It will cost $20.7 million over the next five years, and $3.9 million the following year.

It was officially presented in December 2023 during an official visit to Australia by the French Minister for Europe and Foreign Affairs, Catherine Colonna.

“Australia and France express strong opposition to any coercion or destabilizing action in the South China Sea, including the militarization of disputed areas,” a Department of Foreign Affairs and Trade press release said at the time.

This comes as the Australian Government has invested a further $206.5 million over four years to enhance Australia’s presence in Pacific island countries.

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