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EU Court Adviser Backs Austria in Paks Nuclear Plant Dispute
Advocate-General Supports Austria’s Appeal
The European Court of Justice (ECJ) should rule in favor of Austria in its appeal against the European Commission’s approval of Hungary’s state aid for the expansion of the Paks nuclear plant, according to the court’s adviser.
Concerns Over Procurement Rules
The court’s advocate-general stated that Austria was correct in arguing that the European Commission should have examined whether Hungary’s direct award of the construction contract to Russian company Nizhny Novgorod Engineering complied with EU procurement regulations.
Non-Binding Opinion but Likely Influence
Although the advocate-general’s opinion is non-binding, ECJ judges, who are expected to rule in the coming months, typically follow such recommendations.
Background of the Legal Dispute
Austria launched its appeal at the European Union’s top court in 2022 after the bloc’s second-highest court dismissed its case. The legal challenge dates back to 2018, when Austria sued the European Commission over its approval of Hungary’s plan to construct two new reactors at the Paks nuclear site, located south of Budapest, with Russian assistance. Hungarian authorities had pledged to implement measures ensuring fair competition.
Key Argument by Advocate-General
Advocate-General Laila Medina asserted that the construction contract’s direct award was an “inextricable part” of the state aid and should have been factored into the Commission’s assessment.
Implications of the Ruling
If the ECJ rules in Austria’s favor, it could lead to stricter scrutiny of state aid approvals and procurement processes across the EU. The case also underscores broader concerns over Russian involvement in European energy projects.
“EU Court Adviser Backs Austria in Paks Nuclear Plant Dispute” “EU Court Adviser Backs Austria in Paks Nuclear Plant Dispute” “EU Court Adviser Backs Austria in Paks Nuclear Plant Dispute”