European nations on Friday have reached an agreement in principle to finance cost overruns on the long-delayed a400m heavy lift transport aircraft, a German Defense Ministry spokesman said Friday, according to the Associated Press.

Details are set to be released later today.

Last month, European defense contractor EADS confirmed it had received a proposal from customer nations proposing a number of changes to the initial contract. Nations include Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey.

The company said at the time that it was not a contract draft.

The A400 medium-sized transport aircraft program, which was set to cost up to 27 billion euros, began in 2003 with commitments from various EU nations, was initiated due to a shortfall in transport needs for military and humanitarian needs.

Equipment shortfalls for heavy-lift aircraft, and helicopters was a challenge for both the European Union and NATO, said U.K. Secretary of State for Defence Bob Ainsworth in January.

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