The news was in the papers here in Germany the other day, as if someone is floating the idea ahead of giving the A400M the chop.
I think the basic problem is that this is a fixed-cost contract that will not see additional funds coming from the governments involved. You know how usually "fixed-cost" means anything but that? Well, this time the purses are staying firmly shut but Airbus seems to be not in the mood to have to eat the losses.
There seems to be a perfect get-out clause if the first aircraft doesn't fly soon, when it is nowhere close to being flown and that might be that!
I guess it will be good news for Boeing and Lockheed-Martin, tears on the pillow for the Airbus military division but much of this could have been foretold from the original A400M design spec with these big, turbo-prop engines. I seem to remember reading something about that when it was launched, anyway!