France has threatened to veto and block an EU free trade agreement with Australia over the cancellation of a 50- billion-euro submarine deal following last week’s security alliance between the Australians, Americans and British, reports The Times.
The French move risks dividing the EU because of widespread reluctance among European countries to become involved in the row, which is seen as a commercial dispute between Paris, Washington, London and Canberra.
Clément Beaune, the French Europe minister, said that Paris would block further progress in the trade talks, which were expected to make a breakthrough with a planned 12th round of negotiations in Brussels next month.
“Keeping one’s word is the condition of trust between democracies and between allies,” he said. “So it is unthinkable to move forward on trade negotiations as if nothing had happened with a country in which we no longer trust.”
The value of the cancelled French submarine contract is greater than the benefits of an EU trade deal with Australia, which is expected to be worth 21 billion euros in exports of goods and services for the EU.