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EU top court should rule against Hungary's nuclear state aid, adviser says

Published by Global Banking & Finance Review

Posted on February 27, 2025

2 min read

· Last updated: January 25, 2026

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EU top court should rule against Hungary's nuclear state aid, adviser says
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(Reuters) - The EU Court of Justice should rule in favour of Austria in its appeal against the European Commission's decision to approve Hungary's state aid for the expansion of its Paks atomic plant,

EU Court Expected to Favor Austria in Hungary's Nuclear Aid Case

(Reuters) - The EU Court of Justice should rule in favour of Austria in its appeal against the European Commission's decision to approve Hungary's state aid for the expansion of its Paks atomic plant, the court's adviser said on Thursday.

The court's advocate-general said Austria had been correct in arguing that the Commission should have examined whether the direct award of the construction contract to Russian company Nizhny Novgorod Engineering was compatible with EU procurement rules.

Opinions of the advocate-general are non-binding, but ECJ judges, who are expected to rule on the case in the coming months, typically follow the majority of them.

Austria launched its appeal at the European Union's top court in 2022 after the bloc's second-highest court dismissed Vienna's case.

Austria sued the EU executive in 2018 for its approval of Hungary's plan to build two new reactors at its Paks nuclear site, south of Budapest, with Russian help following Hungarian authorities' promise to take several measures to ensure fair competition.

Advocate-General Laila Medina said the award of the construction contract had been an "inextricable part" of the state aid, which the Commission should have taken into account.

(Reporting by Bart Meijer; Editing by Alexandra Hudson and Gareth Jones)

Key Takeaways

  • EU Court adviser supports Austria in nuclear aid case.
  • Austria challenges Hungary's Paks plant state aid.
  • Advocate-general questions EU procurement compliance.
  • ECJ ruling expected in coming months.
  • Austria's appeal follows earlier court dismissal.

Frequently Asked Questions

What is the main legal issue in this case?
The main legal issue is Austria's appeal against the European Commission's approval of Hungary's state aid for the expansion of its Paks nuclear site.
What did the advocate-general state about the construction contract?
Advocate-General Laila Medina stated that the award of the construction contract was an 'inextricable part' of the state aid, which the Commission should have considered.
When did Austria launch its appeal?
Austria launched its appeal at the European Union's top court in 2022 after its case was dismissed by the bloc's second-highest court.
Who is the construction contractor for the Paks nuclear site?
The construction contract was awarded to the Russian company Nizhny Novgorod.
Are the opinions of the advocate-general binding?
No, the opinions of the advocate-general are non-binding, but the judges of the ECJ typically follow the majority of them.

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