'No agreement' on A400M financing

ISTANBUL: The nations involved in Airbus Military A400M military airlifter have not yet agreed on financing for the project, said German Defence Minister Karl-Theodor Zu Guttenberg on Friday, as delays and cost overruns threaten to scupper it.

"We have agreed on a very strong text that reflects our readiness to reach a common objective," Guttenberg said on the sidelines of a meeting of NATO defence ministers in Istanbul. But he added "We have not agreed on any number in any form and not on how it's divided."

His remarks come after France's defence minister told reporters late on Thursday that France, Germany and Spain were ready to offer loans to help defuse a funding crisis, but only if Airbus owner EADS digs deeper into its own pockets.