Europe set to grant Airbus defence bailout

SEVEN European nations are set to formalise their backing for the problematic Airbus A400M airlifter with a €3.5bn (£3.07bn) rescue deal today.

The bailout comes after months of political wrangling to prevent the collapse of Europe’s largest single defence project, originally agreed in March 2010, following costly overruns and delays with redundancies of 10,000 jobs.

The UK opposed the plans due to the high cost, at a time when domestic defence spending is being cut.