France is about to lose $60 billion in defense contracts after failed deals with Russia, India, and

ezsasa

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Military contract bungles by President François Hollande's government have cost France nearly $60 billion, according to a damning report Tuesday from Boulevard Voltaire, a left-leaning newspaper based in Paris. In addition to the $2.2 billion that the failed Mistral deal with Russia is set to cost, another two fumbled contracts with India and Egypt for hundreds of Dassault Rafale fighter jets will see Paris lose an additional $57 billion.

France's original $1.2 billion deal to build two Mistral warships for Russia was shelved in June after Paris refused to hand over the vessels because of Russia's support for separatist rebels in Ukraine. It's now set to cost France around $2.2 billion in compensation for breach of contract. But that failed deal is just the tip of the iceberg.

India had initially wanted to purchase 126 new Rafale fighter jets from France, but the order was reduced to less than 40 after Defense Minister Manohar Parrika complained that the outlay for the jets, parts and decades of training and refurbishment was too expensive. It now seems that the entire deal could fail as officials from France and India squabble over the final unit price for the remaining jets, according to a Reuters report.






India will instead spend $25 billion on 127 Russian T-50 fifth-generation stealth fighter jets, a far cheaper and more advanced aircraft. Russia will begin delivering the aircraft within the next 36 months.

"The biggest piece of the Indian contract has disappeared for good, since India does not want the 126 planes," notes the Boulevard Voltaire report.

Meanwhile, France's $5.2 billion deal with Egypt for 24 Rafale fighter jets is still going ahead, but issues with cash flow and credit in Cairo have meant that French banks are backing the deal, adding to already heavy public debts. The French economy is currently experiencing slow economic growth and is carrying debts of 98.43 percent of GDP, or $2.2 trillion.

"Though the quality of Egypt's credit is certainly not Greek, it is clearly not excellent either," mentions the Boulevard Voltaire report.



Read more: http://www.businessinsider.com/france-lose-60-million-in-defense-contracts-2015-8#ixzz3jEDyTAKN
 

pmaitra

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No biggie.

France is a member of G7, the group of the "wealthiest" nations of the world. $60 billion is chump change.
 

Illusive

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The deal should be closed for good, buy tejas and mki and fastrack su30 upgrade.
 

jouni

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India should buy T50 and future supercarriers also from Russia. Those carriers are bigger than US new ones. You are too weak currently in that regard...




Russia needs new carriers also, these old are rusting like you see. Nice retro tech though.
 

blueblood

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Well France can always sell those to Finns. They are extremely rich from what I've gathered.

On a more serious note, French are making a serous mistake by not revising the unit price. $200 million a pop is a ridiculous amount of money with no tech transfer whatsoever.

Rafale is good but its not that good. India will be better off buying superbugs for nearly half the unit price and even less with the "make in India".
 
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Maybe a dark horse a plane least expected might be considered? Japanese are reportedly working on a sixth generation plane?
 

Adioz

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India should buy T50 and future supercarriers also from Russia. Those carriers are bigger than US new ones. You are too weak currently in that regard...




Russia needs new carriers also, these old are rusting like you see. Nice retro tech though.
Indian Navy does not necessarily need aircraft carriers that big. They first need to invest in a larger sub-surface fleet.
That does not mean that they do not need the supercarrier at all. Its simply not time yet.
Those carriers are bigger than US new ones
Bigger does not necessarily mean better. The U.S. ones would have EMALS. Will Russian supercarriers have the similar tech? If they are able to develop this technology, then it might be better to have a T.O.T. and manufacture the supercarriers here in Indian shipyards rather than buying them directly from Russia.
India should buy T50 and future supercarriers also from Russia.
 

blueblood

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Maybe a dark horse a plane least expected might be considered? Japanese are reportedly working on a sixth generation plane?
They are working on both 5th as well as 6th gen but even their 5th gen is a decade away.
 

Adioz

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They are working on both 5th as well as 6th gen but even their 5th gen is a decade away.
Does the definition of a 6th generation fighter even exist?
I believe even the Americans are still debating on the requirements.
 
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They are working on both 5th as well as 6th gen but even their 5th gen is a decade away.
Raptor is the only fifth gen plane in service. Since japan is in development phase(like Russia) if they were looking to partner would be a good option?
 
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Does the definition of a 6th generation fighter even exist?
I believe even the Americans are still debating on the requirements.
6th gen plane is probably 25 years away IMO . There is no new defining technology that would separate fifth from sixth? Unless scramjets are incorporated or some other groundbreaking new tech comes out?
 

salute

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No biggie.

France is a member of G7, the group of the "wealthiest" nations of the world. $60 billion is chump change.
and people thinks french and other western economy is on decline.
 

blueblood

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Does the definition of a 6th generation fighter even exist?
I believe even the Americans are still debating on the requirements.
Apparently Japan has one.

Raptor is the only fifth gen plane in service. Since japan is in development phase(like Russia) if they were looking to partner would be a good option?
Not really. It is yet to have a first flight and Japan is going for some serious tech infusion in the aircraft so it'll take some time before it enters service. India don't have that time or else the squadron strength might dip to lower than Pakis or Tejas will be doing air superiority missions (scary thought).
 

blue marlin

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Maybe a dark horse a plane least expected might be considered? Japanese are reportedly working on a sixth generation plane?
they have just got the 5th gen, the 6th gen is too early for them. but i know france is skipping on a 5th gen jet and going straight to a 6th gen jet, the uk may follow suit to replace eft.
 

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