The European Union’s Court of Justice⁣ ruled on Thursday, September 11, ‍2025, in‌ favor ⁢of Austria, effectively overturning the‍ European Commission’s 2017 ⁢approval of Hungarian state ⁣aid ⁢for the construction of two new ⁢reactors at the Paks II Nuclear Power Plant. The ruling invalidates the Commission’s prior decision and requires a re-evaluation of the aid package.

Austria ​challenged the Commission’s⁢ 2017‍ decision, arguing that‌ the aid package violated EU regulations. The​ European Union Tribunal initially rejected Austria’s claim in November 2022, but Austria appealed.The Court of justice ultimately sided with Austria on Thursday, nullifying both the Tribunal’s previous judgment and the original Commission decision.

The‍ core of the court’s decision centers ⁤on the European Commission’s insufficient investigation. the court steadfast that the commission should have assessed whether the direct award of the Paks II reactors complied with EU ⁣public procurement⁢ regulations, as this is an integral component of the aid measure.⁢ The Commission, the court ruled, could not simply accept assurances​ that ⁤the aid was in⁣ line with EU rules​ without examining ‍the procurement process itself.

Implications for Hungary‌ and the ​Paks II Project

The ‌ruling throws the future‌ of the Paks II project‌ into uncertainty.The expansion,⁤ financed largely ⁣by a Russian loan, aims to double Hungary’s nuclear power ⁤capacity. the project has ⁢been a point of contention, with critics raising concerns about Hungary’s ⁢energy dependence on Russia and the clarity of the⁣ procurement process.

According to Reginner, a⁣ spokesman for the case, if a​ final ⁤rejection decision is made,​ the​ board has the authority⁤ to instruct member States to reclaim the aid provided to ​the companies involved. paula Pinho, a leading spokesman, stated that ⁤they⁢ are ⁢reviewing the implications‍ of the ruling and considering next steps, including ‍whether to halt work on the project.

The Commission has not yet responded directly to the court’s interpretation. ⁢Pinho reiterated that discussions have focused on opportunities and exploring possibilities, but offered no concrete commitments.

Background: The Paks II Expansion

The Paks II Nuclear power⁤ Plant is located in Paks, Hungary, and currently houses four VVER-440 reactors. The planned expansion involves⁤ the construction of two new VVER-1200⁣ reactors, built by ​Rosatom,⁢ the Russian state nuclear corporation. The project is‌ estimated to cost over €20​ billion,⁤ largely ⁤financed by a loan from Russia’