(NSI News Source Info) FARNBOROUGH, England,- July 21, 2010: Italy upset Europe's defence industry on Tuesday by announcing plans to axe its share of the final production run of the Eurofighter combat jet at the Farnborough air show where foreign rivals were showcasing their own jets.The unexpected announcement by one of four nations involved in the project highlighted the pressures being put on European defence budgets and came hours after reluctant arms firms agreed to cough up the funds to develop a new radar for the plane to boost exports.
"We have decided to cut 25 Eurofighters with a saving of 2 billion euros," Italian defence minister Ignazio la Russa told reporters at the air show in southern England.
Italy, Britain, Germany and Spain ordered a total of 620 Eurofighter jets in the 1990s and split the order into three tranches, each of which needed separate funding approval.
The third tranche of 236 planes was split into two in 2008 when nations were already facing a squeeze on budgets, and manufacturers have been pressing governments to plug the remaining budget gap to avoid having to lay off workers.
La Russa did not say which planes he was referring to but air show delegates said he clearly meant Italy's entire allocation of 25 planes under the final tranche, known as 3B.
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