France sees Airbus military plane deal next week - by Jeamy Keaten

France can "reasonably expect" a deal next week between seven countries and European defense giant EADS to resolve a financial dispute over the A400M military transport plane, a Defense Ministry spokesman said Wednesday.

France hopes a deal that could lay the foundation for a new contract will emerge on the sidelines of a European Union defense ministers' meeting in Spain on Wednesday, spokesman Laurent Teisseire said. Spain, which is hosting the regularly scheduled EU defense ministers meeting in its current role as EU president, has final say whether a meeting of A400M customer states occurs in Majorca, Teisseire said.

Governments had made proposals to EADS on Monday, and EADS responded two days later, German officials said Wednesday. Teisseire said France believed the responses "go in a favorable direction." EADS and the seven governments that ordered the four-propeller Airbus plane have been haggling over who will pay for 5.2 billion in cost overruns and technical problems that have put the program almost four years behind schedule.

For the complete report: The Associated Press: France sees Airbus military plane deal next week