London Daily

Focus on the big picture.
Thursday, Sep 17, 2026

Why France Is Getting No Sympathy for Its Lost Sub Deal

Why France Is Getting No Sympathy for Its Lost Sub Deal

Its European neighbors have long bristled at Paris’ self-dealing and aggressive sales tactics.
France is fuming over AUKUS—the new tripartite security arrangement that scuttled its contract to build submarines for Australia—but is receiving scarcely any expressions of sympathy from fellow EU member states. That may be because France itself uses some distinctly tough tactics to secure arms exports, and sells to customers others deem unsavory. Yes, Paris considers arms exports essential to its sovereignty, but its friends too are interested in sovereignty, not to mention fair play.

One day after Saudi journalist Jamal Khashoggi was killed at the Saudi consulate in Istanbul in October 2018, President Emanuel Macron of France and his top ministers received a classified intelligence briefing documenting how Saudi Arabia was using French weapons in Yemen. Six months later, with Germany and other European countries having stopped selling arms to the Saudis, Macron dismissed as “populist” calls for France to do the same.

“What’s the link between arms sales and Mr. Khashoggi’s murder? I understand the connection with what’s happening in Yemen, but there is no link with Mr. Khashoggi,” the president said. “That’s pure demagoguery to say, ‘We must stop arms sales.’ It’s got nothing to do with Mr. Khashoggi.”

More than 130,000 Yemenis have already been killed in that country’s ongoing civil war, and more than 16 million don’t have enough to eat. But ordinary Yemenis’ suffering at the hands of the Saudi coalition and the Houthi fighters hasn’t ended French arms exports to Saudi Arabia. In 2018, French arms exports grew by 50 percent; they included a one-billion Euro sale to Saudi Arabia of patrol boats and other equipment. As Reuters noted, one of the tactics used by Yemen’s Saudi-led coalition is to block ports controlled by the rival Houthis.

And last year, when French arms exports slumped dramatically, sales to Saudi Arabia helped keep the French defense industry afloat. The Gulf kingdom bought 704 million Euros’ worth of French arms, more than any other country. And despite last year’s slump, French arms sales rose 44 percent from 2016 and 2020, outperforming all the other top-five arms exporters.

Most countries with significant defense industries rely on exports to keep them going. But France goes about securing exports in an extremely energetic manner that involves not just defense industry executives but politicians all the way up to the President of the Republic. Indeed, even for French arms-makers that are not owned or part-owned by the government, French politicians act as salesmen to other countries and don’t mind outflanking other countries’ companies in the process. To be sure, U.S. and many other countries’ ministers and officials, too, ply their countries’ deadly wares to other leaders. Few, though, do so as energetically as France.

And France, which considers itself a global actor, clearly feels that status justifies unfriendly negotiation tactics at the expense of allied countries. “Arms exports are the business model of our sovereignty,” Defense Minister Florence Parly noted in 2018.

The saga of Switzerland’s planned fighter jet purchase is illustrative. In 2012, the country decided to replace its aging fighter-jet fleet with Saab Gripens. The Swedish aircraft, deemed not to be the highest performer but good value for money, defeated Dassault Rafale—which had struggled to find foreign buyers—and Eurofighter Typhoon. But at the 11th hour, a confidential report sowing doubts regarding the Gripen’s capabilities surfaced and created a media circus. (Oddly, the circulated report was in English, not one of Switzerland’s official languages.) In a subsequent referendum, 52 percent of voters rejected the deal. This year, Switzerland finally reached a new decision—in favor of the F-35.

Then-President François Hollande was a bit more open about the government’s assistance to arms manufacturers than other French politicians have been. At the 2013 Paris Air Show, as Hollande helped Dassault Aviation’s elderly CEO Serge Dassault ascend the steps to an exhibition stand, he quipped that “it’s the state that’s supporting Dassault…as usual”.

The arrangement leaves countries whose politicians don’t use strong-arm tactics to sell arms at a distinct disadvantage. And it doesn’t endear France to its fellow EU member states. Indeed, when it comes to defense equipment, France is distinctly unpopular among EU member states for another reason as well: it is known to systematically use an escape clause in the Treaty on the Functioning of the European Union to give government contracts to French firms. The escape clause, Article 346, allows EU governments to procure from domestic companies rather than putting the contracts to EU-wide tender—but only in cases of essential security interest. It is, however, up to member states themselves to determine what they consider an essential security interest.

France is among the countries that interpret that interest rather liberally. As the European Parliament’s research service noted in a report in October last year, “despite repeated guidance from the European Commission and CJEU17 that Article 346 TFEU should be used only for specific reasons and on a case-by-case basis, in practice many Member States have continued to interpret the provision ‘as a categorical or automatic exclusion of armaments from the application of EU law’.” In other words, these member states use the clause to systematically buy from their defense industries at the expense of other European firms. In 2019, a European Parliament commission issued a report that called on “Member States [to] strictly respect the conditions of applications of exemptions and, in particular, to strictly limit the potentially abusive use of Article 346”. But the abuse continues—and the governments that dutifully put procurement contracts to EU-wide tender lose out.

All this explains why France’s furious reaction to AUKUS has received little sympathy from its allies. Nobody likes to see a friend hurt – but if that friend has a habit of advancing its interest at others’ expense, there’s no love lost. If France wants to shore up support against the United States, the UK, and Australia, it may have to rethink how it treats its friends, including in the key area of defense exports.
Newsletter

Related Articles

0:00
0:00
Close
Asthma Charity Warns of Major Gaps in Childhood Diagnostic Testing Across England
TUC Chief Paul Nowak Appointed to Bank of England Court
Bristol Opens £35 Million Deep-Tech Innovation Hub at Temple Quarter
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Housing Plan
Andy Burnham Deepens UK Defense and AI Cooperation With NATO and Canada
UK Government Announces Neonatal Safety Reforms After Thirlwall Inquiry
Bank of England Weighs Rate Decision as UK Inflation Rises to 3.1%
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
×