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A400M 'agreement reached'


A400M 'agreement reached'


Partners in the troubled A400M military transport plane have reportedly reached a basic agreement on financing its cost overruns.

A source told Reuters that painfully drawn-out negotiations have finally borne fruit.

Problems in developing the plane’s huge turbo-prop engines have pushed Europe’s largest defence project over budget by billions of euros, forcing seven European NATO customer nations to step in with a mixture of direct aid and guarantees.

This comes as it was reported that Spain and Britain were heading for a clash over the location of hundreds of high-skilled production jobs on the plane.

Spain was said to be pressuring the UK to surrender those aviation jobs.

Madrid’s argument was that Britain does not deserve the jobs if it will not contribute its full share of a 3.5 billion euro government bailout package for the project.

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