Commission clears investment in construction of Paks II nuclear power plant in Hungary

Under the EU Treaties, Member States are free to determine their energy mix and have the choice to invest in nuclear technology. The European Commission's role was to ensure that when public funds were used to support companies, this was done in line with EU state aid rules, which aimed to preserve competition in the Single Market.The European Commission concluded on 6 March 2017 that Hungary's financial support for the construction of two nuclear reactors in Paks (Paks II) involved state aid. However, this support was approved under EU state aid rules on the basis of commitments made by the country to limit distortions of competition.

Russia and Hungary reached an agreement on nuclear cooperation in January 2014, seen with suspicion by the European Commission. While in March 2015 an agreement between Hungary and the EU authorities was announced on that bilateral cooperation, the Commission later decided to open an in-depth investigation into the country's plans to provide financing for the construction of the nuclear reactors.

ESO: Background information: Europe’s radioactive embrace http://www.europeansources.info/record/europes-radioactive-embrace/

ESO: Background information: Energy: Nuclear energy http://www.europeansources.info/record/energy-nuclear-energy/

ESO: Background information: EU’s Orban and ally Putin cement closer ties http://www.europeansources.info/record/eus-orban-and-ally-putin-cement-closer-ties/

Politico, 06.03.17: Commission gives Orbán his nuclear deal http://www.politico.eu/article/commission-gives-orban-his-nuclear-deal/

EUObserver, 06.03.17: EU Commission gives green light to Hungary's Paks nuclear plant https://euobserver.com/news/137122

EurActiv, 07.03.17: Hungary wins final EU approval for Russian-built nuclear plant http://www.euractiv.com/section/energy/news/hungary-wins-final-eu-approval-for-russian-built-nuclear-plant/

Politico, 06.03.17: Hungarian nuclear project secures final Brussels approval http://www.politico.eu/article/paks-ii-secures-final-brussels-approval/

The Local.at, 07.03.17: Austria fumes at Hungary's Kremlin-backed nuclear plant http://www.thelocal.at/20170307/austria-fumes-at-hungary-kremlin-backed-nuclear-plant

Hungary Today, 06.03.17: European Commission Green-Lights State Aid To Hungary’s Paks II Nuclear Upgrade Project https://hungarytoday.hu/news/european-commission-green-lights-state-aid-hungarys-paks-ii-nuclear-upgrade-project-64321

TASS, 06.03.17: Rosatom welcomes EC decision, ready to implement Paks NPP project http://tass.com/economy/934206

EurActiv, 08.03.17: [Opinion] Energy analyst: New nuclear reactors will heavily increase Hungary’s debt http://www.euractiv.com/section/electricity/interview/energy-analyst-new-nuclear-reactors-will-heavily-increase-hungarys-debt/

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