The European Commission launches probe of Paks financing

Budapest, November 23 (MTI) – The European Commission on Monday said it launched an in-depth investigation into Hungary’s plan to provide financing for the upgrade of the Paks nuclear power plant.

“The Commission will in particular assess whether a private investor would have financed the project on similar terms or whether Hungary’s investment constitutes state aid. If the project is found to involve state aid, the Commission will investigate whether as planned it would lead to distortions of competition in particular on the Hungarian energy market,” according to a statement published on the EC website.

Hungary has signed an intergovernmental agreement with Russia on financing for the Paks upgrade.

“Given the size and importance of the Paks project, the Commission has to carefully assess whether Hungary’s investment is indeed on market terms or whether it involves state aid,” said Margrethe Vestager, Commissioner in charge of competition policy.

“This requires a complex analysis. I think it is important that stakeholders can also submit their views,” she added.

The commission already launched another infringement procedure against Hungary on Thursday for failing to comply with European Union public procurement rules in connection with the Paks upgrade. “The Hungarian government has directly awarded the construction of two new reactors and the refurbishment of two additional reactors of the Paks II nuclear power plant without a transparent procedure,” the EC said on its website on Thursday. Government office chief Janos Lazar said later in the day that Hungary was ready to hold coordination talks with Brussels in the next two months over the 12 billion euro project but will take the issue to court if necessary.

Photo: galaktika.hu

Source: http://mtva.hu/hu/hungary-matters