One of the main efforts of the current administration at the Ministry of Defense is to finalize the acquisition of new attack submarines for the Argentine Navy. While significant milestones have been reached in 2024, such as the signing of a Letter of Intent for Scorpène-class submarines, the process of evaluating proposals and selecting a supplier has not yet been concluded. Recent international media reports indicate that the German government is advancing with the approval of guarantees to support the proposal for Type 209NG submarines presented by TKMS to the Argentine government.
As officially reported through Cabinet Chief presentations, the program to restore the Argentine Navy’s Submarine Force capabilities currently has two main proposals. The first comes from the French company Naval Group, offering Scorpène-class attack submarines, while the second is based on the Type 209NG submarines from ThyssenKrupp Marine Systems (TKMS). Both proposals include the delivery of three submarines and, as is common in high-value military equipment sales, each company’s bid is backed by its respective government.
A key milestone in 2023 was the confirmation of a Letter of Intent with Naval Group, signed during the visit of Argentina’s Minister of Defense, Luis Petri, to France. While the document is not binding, it lays the groundwork for further negotiations. However, this does not prevent other companies from submitting revised proposals or the involved governments from intensifying their support efforts.
This seems to be the case with the German government, which, according to a Reuters report from late January, is expected to approve state guarantees worth $4.27 billion to support TKMS’s proposal to equip the Argentine Navy with its submarines.
As emphasized by officials at the Edificio Libertador (Defense Ministry headquarters), financing is a key factor in deciding between the two competing proposals. This was reflected in the 2025 Budget Proposal, which is unlikely to be approved, leading to the extension of the 2023 National Budget. The latter included plans for securing loans worth $2.3 billion for the submarine acquisition.
However, some aspects reported by Reuters are noteworthy, particularly the projected delivery dates, which place the arrival of the German submarines in 2034 and 2035. Additionally, the approval of the aforementioned guarantees by the German government’s Budget Committee is expected in the coming weeks.
Finally, negotiations have taken on a low profile in recent months, as the Ministry of Defense and the Argentine Navy navigate the approval process. Given that such acquisitions require authorization from the Executive Branch, they must also be reviewed by the Ministry of Economy, which has maintained a strict and unwavering zero-deficit fiscal policy.
Photographs used for illustrative purposes only.
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