ADVERTISEMENT

Growing concerns over Paks upgrade

Visits

European officials have warned that the energy agreement between Hungary and Russia regarding the upgrade of Hungary’s sole nuclear power plant in Paks has numerous obstacles and could possibly violate European Union regulations, the Financial Times reported late yesterday.

"A veto or prohibitive fine from Brussels would be a bruising setback for Viktor Orbán, Hungary’s prime minister, who has made the project the centerpiece of his strategy to forge deeper political and economic ties with Russia, despite the ostracizing of Moscow by the west over Ukraine," the Financial Times report said.

"Although the European Commission did not raise objections to an intergovernmental agreement signed by the two countries just over a year ago, the award of contracts for the Paks plant has thrown up thorny antitrust concerns," the paper added.

Responding to Hungarian news agency MTI’s query to comment on the Financial Times’ report, EC spokesperson Ana-Kaisa Itkonen said the review of the project is "in a very early stage" and that "no conclusion of any kind can be drawn as to whether the agreement is in harmony with EU rules on public procurements or state aid".

Following Putin's visit to Budapest last week, Orbán said that he was expecting "an escalating conflict" with Brussels, as Hungary is against the European Union's plan to oversee intergovernmental energy agreements created by member states.

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.