Representatives from seven cash-strapped NATO powers were set to reconvene in Berlin on Friday for a second day of talks aimed at finding a way forward for the troubled A400M military transport plane.

The seven countries have ordered 180 of the aircraft for 20 billion euros (28 billion dollars) from European plane maker Airbus but the project is three years behind schedule and a reported 11 billion euros over budget.

Airbus, Boeing's arch rival owned by aerospace giant EADS, has threatened to pull the plug unless the seven countries — Germany, France, Spain, Britain, Belgium, Luxembourg and Turkey — stump up more cash.

France has indicated that it is ready to pay more, as long as others follow suit, but Germany is seen as more reluctant. Berlin has ordered 60 of the aircraft and France 50, and are the two biggest customers.

"We want the A400M, but not at any price," German Defence Minister Karl-Theodor zu Guttenberg said in an interview with the Bayernkurier paper to appear on Saturday. "Our willingness to compromise has its limits."

The meeting will take place at the German defence ministry and include state secretaries from the seven countries plus unnamed industry figures.

Talks on the A400M on Thursday broke off with apparently no deal in sight and a ministry spokesman said they would restart on Friday morning.

The heads of Airbus and EADS earlier turned up the heat on the seven nations to pledge more money to the project by the end of January, warning that the fate of the European aerospace giant depended on it.

Airbus has 52,000 employees around Europe, with about 10,000 working on the A400M, a state-of-the-art new aircraft that can carry troops, armoured vehicles and helicopters which would replace Europe's ageing fleet of transport planes.

earlier related report

Airbus A400M needs extra 5.2 billion euros: report
Paris (AFP) Jan 21, 2010 – The Airbus A400M military aircraft programme needs an extra 5.2 billion euros (7.3 billion dollars), a French news website reported on Thursday ahead of scheduled crucial talks on the troubled project.

Citing a source close to the negotiations, latribune.fr said Airbus parent group EADS (European Aeronautic Defence and Space Company) was ready to pay 800 million euros of the extra cost for the multi-billion euro programme.

At a meeting in Berlin with partners in the A400M, Airbus management "told them, according to a source close to the talks, that it was ready to pay 800 million euros out of the 5.2 billion in extra costs," the report said.

Contacted by AFP, EADS declined to comment on the report.

Representatives from seven cash-strapped NATO powers were set to reconvene in Berlin on Friday for a second day of talks aimed at finding a way forward for the heavily delayed and over-budget A400M programme.

Previous reports said A400M may need as much as 11 billion euros more.

Airbus, Boeing's arch rival owned by aerospace giant EADS, has threatened to pull the plug unless the seven countries — Germany, France, Spain, Britain, Belgium, Luxembourg and Turkey — stump up more cash.

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