European nations have signed a $13 billion contract for some 112 Eurofighter Typhoon combat jets.

Ministers from Britain, Germany, Italy and Spain and representatives from a consortium of defense companies signed the deal on Friday. It represents a much-needed financial shot in the arm for a program troubled by rising construction costs and the economic crisis, which has tightened European defense budgets.

The contract is good news for the planes' manufacturers, the German-Spanish European Aeronautic Defense and Space Co., Britain's BAE Systems and Italy's Finmeccanica. It also includes a $2 billion jet engine order from a consortium made up of Britain's Rolls-Royce and MTU Aero Engines from Germany.

Britain had reportedly threatened to bail out of the Eurofighter program but was ultimately convinced by the European partners to stay on board.

Politicians across Europe hailed the deal.

The German Defense Ministry said in a statement that the order secures thousands of highly qualified jobs in the European aviation industry until at least 2015 and improves export chances for the combat jet.

"This is excellent news for both our armed forces and UK industry," Quentin Davies, British minister for defense equipment, was quoted by the BBC as saying.

Because of its tight budget and a revision of its military planned for 2010, it's unlikely, however, that Britain will buy additional Eurofighters anytime soon. With the latest deal, the number of Eurofighter Typhoons in service and on order rises to 559.

While critics argue the plane has been designed for Cold War-like conflicts and is now obsolete, major countries in Asia and the Middle East are still stocking up on fighter jets: Recently, Saudi Arabia bought 72 Eurofighters from Britain.

And EADS, the driving force behind the program, is hoping that India will choose the Eurofighter for its planned $11 billion acquisition of 126 combat jets. Other planes placed in the bidding race are Boeing's F/A-18E/F Super Hornet, Lockheed Martin's F-16 Fighting Falcon, the French-made Dassault Rafale, SAAB Gripen from Sweden and the Russian-produced Mikoyan MiG-35.

The Business Standard reports that EADS will try to convince India to join a manufacturing partnership in the Eurofighter program, a rare expertise and job-sharing offer.

"If India becomes the fifth Eurofighter partner, it will manufacture complete assemblies -- say, as a random example, the front fuselage and tail fins -- for every new Eurofighter across the world," the Business Standard writes.

The Eurofighter Typhoon is a twin-engine canard-delta wing multirole aircraft, designed and built by a consortium formed in 1986. The maiden flight of the Eurofighter prototype took place in March 1994.