EU Court Advisor Backs Austria in Nuclear Plant State Aid Dispute

The EU Court of Justice should side with Austria in its appeal against the European Commission's approval of Hungary's state aid for expanding the Paks atomic plant. Advocate-General Laila Medina supports Austria's argument that EU procurement rules were bypassed in awarding the contract to a Russian company.

An advocate-general for the EU Court of Justice has advised in favor of Austria in its ongoing legal battle against the European Commission. The case revolves around the Commission's approval of Hungary's state aid for the development of two new reactors at the Paks atomic plant.

A key point of contention is whether the direct award of the construction contract to Nizhny Novgorod Engineering, a Russian firm, complied with EU procurement regulations. Advocate-General Laila Medina expressed that Austria was justified in questioning the legality of the contract given its link to promised state aid.

This opinion, though non-binding, frequently influences the decisions of EU judges, who are expected to issue a ruling in the coming months. Austria originally sued the EU in 2018, asserting that the approval did not ensure fair competition.

(With inputs from agencies.)