Judgment in Case T-101/18 Austria v Commission

Wednesday 30th November 2022

Judgment in Case T-101/18 Austria v Commission

(State Aid)

By decision of 6 March 2017, the European Commission approved the investment aid notified by Hungary in favour of the state-owned company MVM Paks II Nuclear Power Plant Development Private Company Limited by Shares (‘Paks II’), relating to the operation of two nuclear reactors under construction at the Paks nuclear power plant site, which are to gradually replace the four nuclear reactors already operating at that site.

This investment aid, which consists, in substance, of the provision of the new nuclear reactors to Paks II free of charge for the purpose of their operation, is largely financed by a loan in the form of a revolving credit line of EUR 10 billion granted by the Russian Federation to Hungary under an intergovernmental agreement on cooperation in the peaceful uses of nuclear energy. In accordance with that agreement, the construction of the new reactors was entrusted, by way of direct award, to the Nizhny Novgorod Engineering Company Atomenergoproekt (‘JSC NIAEP’).

In the contested decision, the Commission declared the aid in question to be compatible with the internal market subject to conditions, in accordance with Article 107(3)(c) TFEU. According to this provision, aid to facilitate the development of certain economic activities or of certain economic areas may be considered compatible with the internal market, provided that it does not adversely affect trading conditions to an extent contrary to the common interest.

The Republic of Austria has brought an action for annulment of the contested decision.

Background Documents T-101/18