EADS Breaks A400M Finance Deadlock

28 February 2010 (Last Updated February 28th, 2010 18:30)

Spanish Defence Minister Carme Chacon said EADS had reached a deal with seven governments over how to share cost overruns for the A400M military plane. Chacon said they had reached an agreement in principle between the seven partner countries and EADS, according to Defensenews.

Spanish Defence Minister Carme Chacon said EADS had reached a deal with seven governments over how to share cost overruns for the A400M military plane.

Chacon said they had reached an agreement in principle between the seven partner countries and EADS, according to Defensenews.

EADS had earlier threatened to stop Europe's largest defence project, until the seven Nato countries, which have ordered 180 A400Ms, agreed to pay an additional €5.2bn ($7bn) for the cost overruns.

The seven nations (Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey) offered a total of €2bn ($3bn) in additional financing to cover the cost overrun.

There are no more financial demands on the part of EADS.

"EADS does not demand a further step beyond these two billion euros. It is a major advance," French Defence Minister Hervé Morin said.

A highly innovative aircraft, the A400M flies at 40,000ft and can carry troops, armoured vehicles and helicopters.