Commission confirms no aid in Belgian public guarantee for nuclear risks

Background and further information:

Belgium is a signatory of the Paris Convention on nuclear third party liability. This Convention was amended in 2004 to increase the amounts of compensation and extend the scope of damages which can be compensated. The 2004 Amendment Protocol had not yet entered into force to date.

In December 2016, Belgium adopted a law to improve compensation for potential victims of a nuclear incident. This law aims to ensure the country's compliance with the amended Convention from the moment it enters into force. In March 2017, Belgium notified this measure to the European Commission for assessment under EU state aid rules.

The Commission found that, in this case, the premium to be paid by the nuclear operators to benefit from the state guarantee was set at such a level that it will not give them an economic advantage. The Commission also found that the premium is expensive enough to avoid crowding out the private insurance market – there are sufficient incentives for private players to develop competitive offers to replace the need for the State guarantee.

The European Commission concluded on 14 July 2017 that Belgium's state guarantee for nuclear operators that do not find sufficient civil liability coverage on private insurance markets does not involve state aid.

The Commission argued that this would improve compensation for potential victims without granting any advantage to operators.

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