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Australia's defense budget risks not being able to cope with financing the purchase of American nuclear submarines

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Australia may not have enough funds planned for defense this year due to the refusal to purchase inexpensive French nuclear submarines in favor of American nuclear submarines, which cost several times more expensive. This is reported by the British The Guardian with reference to the conclusions made in the report of the Australian Institute for Strategic Policy (ASPI).

According to military experts, after breaking the deal with the French and the decision to purchase American submarines within the framework of the AUKUS military trade union formed last year jointly with the United States and Great Britain, the Australian Defense Ministry will face serious financial difficulties. The purchase of American submarines will cost Canberra $ 90 billion. While the entire defense budget of the country in 2022 will amount to 48.6 billion dollars, which is equivalent to 2.11% of GDP.

The new platforms are much larger than the ones they are replacing, requiring more crew and maintenance capacity. As a result, the level of expenditures will be significantly higher than originally included in the investment plan of the Ministry of Defense

— says the ASPI report.

The total costs for the purchase of American nuclear submarines, the creation of service infrastructure, according to experts, may amount to more than $ 150 billion. At the same time, the first submarines will enter service with the Royal Australian Navy no earlier than 2040.

The author of the report, ASPI senior analyst Markus Hellier, agrees that the Austrian navy needs rearmament and more modern warships. But he also warned of the strategic risks inherent in long-term procurement programs "built around megaprojects."

Such projects take years or decades to develop and deliver, spending huge amounts for little benefit in the short term

— says Hellier.

The retiring senator from South Australia, Rex Patrick, called the situation of buying submarines under a new contract under the AUKUS rearmament program a "complete political failure."

The new AUKUS military alliance was formed in September 2021 at the initiative of the United States, which with its help seeks to counter the strengthening of the PRC in the disputed waters of the South China Sea and the Indo-Pacific region. The military bloc includes the United States, Australia and the United Kingdom. Immediately after the announcement of the alliance, Australia, without prior notice, canceled the French-Australian deal for the supply of submarines worth 56 billion euros. In return, the United States promised Canberra assistance in the construction of American nuclear submarines, of course, not for free.

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