Paks II: Hungarian government violates EU law by continued funding – Energiaklub Climate Policy Institute has initiated a legality supervision procedure in court
2026-02-26
The Energiaklub Climate Policy Institute has requested the Registry Court of the Szekszárd Regional Court to conduct a legality supervision procedure concerning the nearly HUF 80 billion capital increase of Paks II Nuclear Power Plant Private Limited Company, registered in December 2025. In Energiaklub’s view, the capital increase may violate EU law as it may constitute state aid, for which the prior EU approval was annulled by the Court of Justice of the European Union in its September 2025 judgment. Under EU law, not only the European Commission but also national courts are duty-bound to act in cases of unlawful state aid – which is why Energiaklub has turned to the Registry Court.
That this is in violation with EU rules is indirectly confirmed by the Czech government’s approach to NPP preparations before a valid notification. After having received the state aid permit for Dukovany unit 5, the government decided to order two reactors and thus had to re-start the negotiations with the European Commission; decision is not expected this year. However, the preparations for the NPP are ongoing and the state budget for the current year includes funds for Dukovany 5.
Those reserved funds were taken out again due to the lack of payment notification. Instead, a bridge loan from a syndicate of five Czech banks led by Komerční banka is used. The banks provided a limit of EUR 600 million, which can be increased. Immediately after notification is granted, the state should then release the money earmarked for the core and repay the Dukovany unit 5 bank loan immediately.