A400M "Cancellation" - more considerations ...
When, a few months ago, the A400M contract(s) were revised, ALL the governments involved also agreed NOT to cut their orders "substantially", i.e. below the reductions agreed in those negotiations. Unilateral cancellation by HMG would involve compensation payments, but also get right up the noses of our partners in the programme. With Mr. Cameron's stated objective of being more effectively active within the EU, the ensuing ruckus could be loud and embarrassing.
And, as ORAC says, there would also be the knock-on effect on EADS work in UK. Broughton and Filton could feel very cold winds a-blowing ...
Also, there's the apparently good progress in proving the aircraft's ability to meet its specs to consider, which would remove the only legally sound reason to cancel ....