Nato is set to award its largest defence contract in decades for a fleet of surveillance aircraft to a consortium led by European aerospace giant EADS.
Although the decision will not be formalised until next month, chief procurement officials in Nato capitals have until Friday to object to the EADS-led group, according to alliance and industry officials.
Nato hopes the decision to go forward with the long-delayed programme, which could be worth €4 billion, will serve as a sign of renewed commitment to the alliance on both sides of the Atlantic following the crisis over the Iraq war.
But there remains a risk of yet another transatlantic row over the deal, as Raytheon, the US defence group that competed against EADS for the contract, is accusing Nato of pushing through an American-backed offering under US pressure.
According to western diplomats, the United States has backed the EADS contract because of the involvement of Northrop Grumman, which builds the US air force's ground surveillance aircraft, known as J-Stars. The United States had pushed Nato to buy J-Stars outright, but when several European members stalled, Northrop joined EADS to produce a similar aircraft using an Airbus body.
Raytheon, which is building the Astor surveillance aircraft for Britain, has argued that buying the EADS-Northrop aircraft will lock Nato into the US air force's system software, giving the US control of the alliance's surveillance architecture.
A spokesperson for the EADS-led consortium accused Raytheon of trying to scrap the Nato programme so it can sell Astor to other European nations.
Financial Times Services