London Daily

Focus on the big picture.
Thursday, Jul 09, 2026

Australia Retaliates In Submarine Row: "French Deal Not In Our Interest"

Australia Retaliates In Submarine Row: "French Deal Not In Our Interest"

Australian Prime Minister Scott Morrison said that Canberra had "deep and grave concerns" over French submarines even before the deal was abandoned.

Australia on Sunday defended its decision to ditch a multi-billion-dollar order for French submarines and opt instead for an alternative deal with the United States and Britain, saying it had flagged its concerns to Paris months ago.

Canberra's move enraged Paris, triggering an unprecedented diplomatic crisis that analysts say could do lasting damage to U.S. alliances with France and Europe. It has also riled China, the major rising power in the Indo-Pacific region.

The United States has sought to assuage the anger in France, a NATO ally, and the French government spokesman said on Sunday that President Emmanuel Macron would have a call with U.S. President Joe Biden "in the next few days". Paris has recalled its envoys to Washington and Canberra for consultations.

"I don't regret the decision to put Australia's national interest first," Prime Minister Scott Morrison said on Sunday.

Morrison said he understood France's disappointment over the cancellation of the order - valued at $40 billion in 2016 and reckoned to cost much more today - but reiterated that Australia must always take decisions in its best interests.

"This is an issue that had been raised by me directly some months ago and we continued to talk those issues through, including by defence ministers and others," he told a briefing.

Under its new trilateral security partnership, Australia will build at least eight nuclear-powered submarines with U.S. and British technology. The scrapped deal, struck with France's Naval Group in 2016, was for a fleet of conventional submarines.

The new trilateral deal has cast into doubt the united front that Biden is seeking to forge against China's growing power.

'OPEN AND HONEST'


French government spokesman Gabriel Attal told BFM TV that Macron would seek "clarification" of the cancellation in his call with Biden. Discussions would then need to take place over contract clauses, notably compensation for the French side.

European Union leaders are certain to discuss the issue at talks in Slovenia on Oct. 5, said an EU diplomat, saying it had raised questions over the transatlantic relationship and Europe's own geopolitical ambitions in the Indo-Pacific region.

"I think the French... will milk it for all it's worth," the diplomat said, referring to Macron's long-standing support for greater European strategic autonomy, though many EU states are reluctant to weaken security ties with the United States.

Australian Defence Minister Peter Dutton said Canberra was "upfront, open and honest" with France about its concerns. He declined to reveal costs of the new pact, saying only that "it's not going to be a cheap project".

Britain's role in the trilateral partnership demonstrates its readiness to be "hard-headed" in defending its interests post-Brexit, newly appointed Foreign Secretary Liz Truss said in an article published on Sunday.

She said it also showed Britain's commitment to security and stability in the Indo-Pacific region.

Newsletter

Related Articles

0:00
0:00
Close
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Barclays and PwC Report Examines Economic Opportunities from Financial Asset Tokenisation
Pound Sterling Strengthens as Investors Anticipate Further Bank of England Rate Increases
British Business Bank Invests Twenty-Seven Million Pounds in Kraken Technology Defence Expansion
UK Business Secretary Peter Kyle Backs State Investment Strategy Inspired by US Approach
UK Electricity System Issues Margin Notice as Heatwave Tightens Evening Supply Outlook
Labour Leadership Contest Opens as Andy Burnham Emerges as Expected Sole Candidate
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Rare Early Copy of US Declaration of Independence Found in British Archive
Cornish Language Revival Gains Momentum Through Schools and Community Programs
UK Authorities Face Criticism Over Prisoner Early Release Safeguards
Clacton By-Election Set After Nigel Farage Resigns Seat to Trigger Contest
Government Agencies Review Long-Term Fiscal Risks from Aging Population and Low Productivity
UK Heatwaves Expose Pressure on Public Transport and Housing Infrastructure
UK Government Prepares Welfare Review Amid Debate Over Personal Independence Payment Reform
UK Government Expands Rapid Endometriosis Testing Across NHS Services
Vistry Group Issues Profit Warning as UK Housing Market Faces Continued Pressure
Virgin Media Receives Record Twenty-Eight Million Pound Fine Over Contract Cancellation Failures
Office for Budget Responsibility Warns UK Public Finances Face Long-Term Pressure
UK Watchdog Warns Regional Income Gap Has Barely Narrowed in Three Decades
IMF Raises United Kingdom Growth Forecast as Inflation and Energy Pressures Ease
UK Government Launches Regulatory Reform Bill to Speed Up Commercialization of Innovation
Prince Harry Loses Privacy Lawsuit Against Daily Mail Publisher After High Court Rejects Claims
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
Jet2 Reports Strong Summer Travel Demand as Bookings Rise Seven Percent
Prince Harry Loses High Court Privacy Case Against Daily Mail Publisher
British Universities Warn Against Potential European Union Tuition Fee Changes
Heal Fertility Clinic Investigated After Embryo Biopsy Sample Mix-Up
Resolution Foundation Warns Regional Income Divide Has Barely Improved Since 1997
British Markets Remain Cautious as Middle East Tensions Rise and Government Transition Nears
Andy Burnham Poised to Become United Kingdom Prime Minister in Expected Political Transition
Nigel Farage Resigns as Member of Parliament Ahead of By-Election Amid Funding Investigation
Trump Declares Iran Ceasefire Over After Renewed Attacks on United States Bases
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
UK Parliament Pushes for Greater Domestic Control Over Critical Technologies
UK Parliament Warns Trade Fair and Exhibition Industry Is Losing Global Competitiveness
Police Launch Murder Investigation After Mother and Two Children Found Dead Near Bedford
British Chambers of Commerce Survey Shows Business Confidence Falls to Post-Pandemic Low
×