London Daily

Focus on the big picture.
Thursday, Jan 29, 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
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
×