Australia said it agreed to pay France’s Naval Group €555 million to settle a dispute between the two countries over a canceled submarine contract.
Canberra decided to scupper a €90 billion submarine deal with the state-controlled French company last year in order to pursue an alliance with the U.S. and the U.K., known as AUKUS, that will allow Australia to acquire nuclear-powered submarines.
The decision, which was taken by Australia’s previous government, created a deep rift between Canberra and Paris that threatened to undermine ongoing trade talks between the EU and Australia.
Australian Prime Minister Anthony Albanese resolved to settle the row after taking office last month. He said on Saturday that the settlement clears the way for the allies to put the disagreement behind them.
“I look forward to taking up President Macron’s invitation to visit Paris at an early opportunity, and to continuing to work closely with him as we deepen the strategic partnership between our nations,” Albanese said in a statement.
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