GERMANY has decided to press ahead with the Eurofighter - safeguarding thousands of British jobs which depend on the project for survival.

The future of the project was seen as vital to the Matra British Aerospace factory at Lostock, where missile guidance systems for the new fighter will be made.

Germany's commitment to the scheme had been in doubt for months as Bonn grappled with budget problems.

But finance minister Theo Vaigel has found £600 million to finance the next stage of the Eurofighter's development.

Last month Defence Secretary George Robertson pleaded with his German counterpart Volker Ruhe not to add to the delay in completing the £40 billion collaborative project with Britain, Italy and Spain. Germany had already sunk £12 billion into the project but was baulking at further investment.

Production of the new fighter is being shared between Britain (38 per cent), Germany (30 per cent), Italy (20 per cent) and Spain (12 per cent).

For the UK, production of the Eurofighter means confirmation of at least 6,000 jobs, rising to 16,000 during peak production. British Aerospace says the project is also worth 80,000 dependent jobs.

The danger was that if Germany delayed committing fresh cash beyond the autumn, British Aerospace could not deliver the new planes to the RAF as planned in 2001.

The UK plans to buy 230 Eurofighters and Germany remains on course to purchase 180. Italy is committed to taking 130, with 87 earmarked for Spain. But the future still remains uncertain, with the main German opposition party still threatening to pull out completely if it defeats Chancellor Kohl in the next national election. And billions more are required to complete Eurofighter.

Britain considers Eurofighter vital to keep ahead on defence.

Although the Cold War is over, foreign air forces continue to update and British and Nato forces around the world insist they need a fighter to protect them or to dominate a potential enemy's skies for many years to come.

The four-nation Eurofighter collaboration is considered the most effective means of replacing the RAF's ageing Tornado F3.

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