The European Union Court overturned the European Commission's permit for Hungary to finance the construction of two new units of the Paks-2 nuclear power plant, which was to be implemented by the Russian corporation Rosatom, writes the Financial Times.
As the court ruled, the European Commission did not sufficiently justify its 2017 decision, which approved Budapest's direct contracts with Rosatom without conducting a public tender. The Commission should have determined whether this complies with EU rules on public procurement.
The Hungarian government stated that it will continue to implement the project according to schedule but is ready to cooperate with the European Commission to confirm compliance with the rules on public procurement and state support. "The court did not say that the project violates procurement rules, it only indicated that the justification was insufficient," said János Bóka, Minister for EU Affairs in the Hungarian government. He noted that there are no legal reasons not to continue investments in the Paks nuclear power plant "at the current pace".
The existing Paks nuclear power plant already includes four Soviet-built reactors, commissioned in the 1980s. While other countries of the former Eastern Bloc are updating their nuclear infrastructure with Western technologies, Hungary insisted on partnering with Russia, although it considered alternatives, notes FT.
Budapest signed an agreement to build the nuclear power plant with the Russian state corporation Rosatom in 2014. The project has been repeatedly delayed. It is now expected that construction will be completed by the early 2030s.