EU Court Favors Austria in Paks Expansion Dispute
The EU Court of Justice favored Austria in its challenge against the European Commission's approval of Hungary's state aid for the Paks atomic plant expansion. The court agreed with Austria that the contract awarded to the Russian firm needed scrutiny under EU procurement rules.
- Country:
- Netherlands
The European Union's Court of Justice ruled on Thursday in favor of Austria in a legal challenge concerning the expansion of Hungary's Paks atomic power plant. This decision overturns the European Commission's initial approval of state aid granted to the project.
Austria's appeal was based on the argument that the European Commission did not properly assess the direct awarding of the construction contract to the Russian company Nizhny Novgorod Engineering. Austria claimed this was a breach of EU procurement regulations, which require a more thorough examination into contracts of this nature.
The court's ruling underscores the necessity of adhering to EU procurement rules even for state-backed projects. This verdict raises questions about the future of the Paks plant expansion and its compliance with European standards.
(With inputs from agencies.)
Google News