The European Commission rigorously reviews investment agreements of EU member states. For nuclear power, the United Kingdom and Hungary are suspected of disproportionately subsidizing agreements. Are EU member states reviving an uneconomic energy technology? How does this affect climate change abatement policy?
Recent nuclear investment agreements between EU countries on the one side and deep-pocketed non-European partners on the other side have become subject of scrutiny by the European Commission (EC). The latest such assessment concerns an investment agreement between Hungary and the Russian Federation for nuclear power in Paks. It resembles another recently closed case before the EC regarding the construction of a European Pressurized Reactor (EPR) at the UK’s Hinkley Point Site. As with the UK, Hungary is subjected to critical scrutiny by the EC over disproportionate state aid and violation of market pricing. Both the UK and Hungary argue nuclear energy is cost-competitive; but how so exactly?