EU faces dilemmas over Hungary’s nuclear deal with Russia

Moscow, 14 Jan. 14, 2014: Hungarian Prime Minister Viktor Orban (L) and Russian President Vladimir Putin (R) reached a deal on the Paks nuclear power plant modernization that may bend EU’s procurement rules (source: dpa)
Moscow, 14 Jan. 14, 2014: Hungarian Prime Minister Viktor Orban (L) and Russian President Vladimir Putin (R) reached a deal on the Paks nuclear power plant modernization that may bend EU’s procurement rules (source: dpa)

Hungary is officially upbeat about its agreement with Russia to expand the Paks-2 nuclear plant. But behind the hurrah-optimism of Prime Minister Viktor Orban and government officials, the 12 billion euro contract with Rosatom is encountering stiff resistance at home and abroad, writes GIS guest expert Peter Juhasz.

Summary

<i>Criticism has focused not just on the project’s environmental and economic risks, but also on its potential violation of European Union competition and procurement rules. That makes Paks-2 an important test case for the EU’s credibility. A vigorous attempt by Brussels to enforce the rules and hold up the project will infuriate Russia and may wel...

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