Confirmed in a joint AUs, UK, US broadcast at 22.00 - French deal dead, subs to be built in Adelaide. New, formal 3 party defence, technology and diplomatic grouping called AUKUS, effectively the hard core of the 5 eyes group.
The EU slant of this is that: a) the earnings from the French-Aus deal were going to provide some of the funding for the French Navy submarine programme - now the only EU state with nuclear weapons - and now they won't. The French will plough on, they'll retain the capability, they'll just have less cash for other stuff. See the stuff above about EU military capability - the French are the core of that. Less French stuff ='s less stuff.
b) the China thing is beginning to cause problems. Germany has long pushed a soft line, and partners in the Indo-Pacific region are going public with their exasperation, and they aren't buying EU produced stuff to build up their military capabilities. That makes EU products more expensive for those who do buy them, which means they buy less/fewer...
It's not the fall of Rome, but it's interesting.