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.