Luxembourg, 27 February 2025 – Advocate General Laila Medina has recommended that the Court of Justice of the European Union (CJEU) set aside a previous ruling that upheld the European Commission’s approval of Hungarian state aid for the construction of two new nuclear reactors at the Paks nuclear power plant.
The case stems from a 2017 Commission decision approving €12.5 billion in state aid to finance the reactors, which were to be built by Russian firm Nizhny Novgorod Engineering under a direct award contract. Austria challenged the Commission’s approval, arguing that the contract violated EU public procurement rules.
In her opinion, Advocate General Medina found that the Commission should have assessed whether the direct award to Nizhny Novgorod Engineering complied with EU procurement law, as the award was an “inextricable” part of the aid package. Failing to examine this issue rendered the Commission’s decision insufficiently reasoned.
Medina also concluded that the General Court’s 2022 ruling dismissing Austria’s challenge lacked adequate review of the aid’s proportionality and failed to provide sufficient reasoning.
While the Advocate General’s opinion is not binding, it is an important step in the legal process. The CJEU judges will now deliberate before issuing a final ruling.
Background:
- The reactors are part of Hungary’s long-term plan to replace older units at the Paks nuclear plant, located south of Budapest.
- The Russian government agreed to provide €10 billion in financing for the project.
- Austria, supported by Luxembourg, argued that the Commission failed to ensure compliance with EU procurement rules.
- Hungary, supported by the Czech Republic, France, and Poland, defended the Commission’s approval.
The final decision by the CJEU will have implications for state aid oversight, procurement rules, and energy policy within the EU.
Source: https://curia.europa.eu/jcms/upload/docs/application/pdf/2025-02/cp250024en.pdf
