Libya conflict, order gap spurred French Rafale sale to Egypt
PARIS, Feb 13 (Reuters).
The arms deal that eluded France for 20 years, its first foreign order for the Rafale combat jet, came with a Thursday evening phone call crowning weeks of diplomacy carried out with unusual speed and stealth.
Egypt's decision to buy 24 of the Dassault Aviation fighters follows failures by successive French governments to sell the plane and leapfrogs three years of inconclusive talks for a 126-plane contract with India.
By giving the green light via his defence minister on Thursday, Egyptian President Abdel Fattah al-Sisi has boosted a defence project that is barely ticking over in a half-empty production hall.
"It isn't the deal we were expecting but it won't do any harm to the Rafale to have an export order under its belt. It gives France a little more breathing space," said Douglas Barrie, a senior fellow at London-based thinktank IISS.
Diplomats say the deal suits both Cairo and Paris geopolitically with both particularly invested in the fight against jihadist groups in North Africa.
Sisi has been looking to upgrade Egypt's military hardware over fears Islamist militias in neighbouring Libya could take control and directly threaten Egypt.
"Egypt needs planes quickly," said Patricia Adam, president of the French parliament's defence committee. "You just need to take a look at what's happening at its border. They are especially worried by what's happening in Libya."
France has urgently been looking for an export buyer to prevent Rafale production lines from going cold after the military slowed deliveries due to budget problems.
Negotiations began in September after France's defence minister Jean-Yves Le Drian visited Cairo, hoping at best to interest Egyptian authorities in the modernisation of its existing Mirage 2000 jets.
The phlegmatic Breton politician, a long-time ally of French President Francois Hollande, had been actively courting potential Rafale buyers. But Egypt was not on the list of prospects containing India, Qatar, Malaysia and Kuwait.
"On the Rafale, when Sisi told Le Drian he was interested it came as a complete surprise," said a French diplomat.
Talks were kept to a tight circle, but in a TV interview during a visit to Paris in November, Sisi hinted at the condition for striking new deals: financing support.
"Will France better understand our economic situation or not? We shall see," he told France 24.
Diplomats say talks took a significant step forward on the sidelines of the inauguration of Saudi King Salman last month, where Sisi told Hollande he wanted to move ahead quickly.
France said on Friday over half the purchase price would be financed by French banks with a state-backed Coface guarantee.
The rest must be paid by Egypt but French media report this will be funded in part by at least one Gulf state.
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