Gov't To Order 4 Subs From French Group For ~EUR4bn: RTL

Dutch outlet RTL reporting that the gov't has opted to purchase a new fleet of four submarines from French manufacturer Naval Group at an estimated cost of around EUR4bn. Naval Group saw off compeition from Sweden's Saab and Germany's TKMS in the tendering process. The Council of Ministers is set to formally sign-off on the plan on Friday 15 March before debate on the matter starts on Monday 18 March in the House of Representatives. The plan could throw up some political headwinds for the gov't given that the Saab bid was a joint one with Dutch shipyard, Damen.

• While a previous deal with Damen for four frigates is set to cost EUR2.5bn to manufacture and another EUR2.5bn to arm the ships, the favouring of a French firm over involvement of Dutch shipyards could lead to some blowback for PM Mark Rutte's demissionary gov't.
• RTL reports that around 40% of the work on the subs could be carried out in the Netherlands, potentially dulling any attacks against the gov't for not supporting domestic industry.
• There are also questions regarding the demissionary gov'ts ability to enacty major spending pledges given that coalition negotiations following the November 2023 election are ongoing.
• Geert Wilders, leader of the right-wing Party for Freedom, has backed down on his previous comments opposing Dutch aid to Ukraine, but has criticised gov't plans to enact long-term spending pledges despite existing in a caretaker capacity.