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Inextricably Linked? The Limits of a State Aid Inquiry · Case T-101/18 Republic of Austria v European Commission (Paks II) · Annotation by Tamás Kende and Gábor Puskás journal article

Annotation on the Judgment of the General Court of 30 November 2023 in Case T-101/18 Republic of Austria v European Commission (Paks II)

Tamás Kende, Gábor Puskás

European State Aid Law Quarterly, Volume 22 (2023), Issue 2, Page 205 - 211

Article 107(3)(c) TFEU requires a delicate balancing of the positive effects of the aid aiming the development of certain economic activities and the negative effects thereof. The Paks II judgment provides clarifications as to the limits of this balancing process and the European Commission’s obligations to take into account primary and secondary EU laws other than those related to State aid, as well as fundamental goals of the EU Treaties like the protection of environment. The Paks II judgment also confirms that State aid rules are also applicable concerning activities falling under the EURATOM Treaty and clarifies the relationship between State aid and public procurement and an infringement procedure and a State aid procedure. The Paks II judgment also shows that Member States have a hard time with challenging the Commission’s State aid decisions if they rely on an alleged err in law or they attack the Commission’s discretionary powers and the proper application thereof.


State Aid for New Nuclear Power Plants under the Plethora of EU Environmental Regulations journal article

Sebastian J Kasper

European State Aid Law Quarterly, Volume 21 (2022), Issue 3, Page 251 - 265

Climate change has become one of the critical matters of European Union (EU) Law. Hence, the EU Member States are about to transform their respective energy supplies from mainly fossil fuels to climate-neutral sources. This transformation process requires time, as the security of energy supply must be ensured (see Article 194(1)(b) of the Treaty on the Functioning of the European Union). An approach favoured mainly by France and argued by several parties across Europe is to rely heavily on nuclear power and to invest in (new) nuclear reactors until 2050. Against this background, the question arises whether the EU Member States can support the transformation process by granting State aid for nuclear power plants despite the commonly known risks. Since the European Commission’s recently published Guidelines on State aid for climate, environmental protection and energy 2022 exclude nuclear energy from its scope, a broader review of the European Treaties, including the Euratom Treaty, as well as secondary and tertiary instruments, must be conducted to answer this question. Considering that nuclear energy has, following the Joint Research Centre’s risk assessment, recently been included in the Taxonomy Regulation for a transitionary period, granting State aid for nuclear reactors is likely to be still compatible with EU law upon the European Commission’s discretion, but not for long. Keywords: nuclear power; Taxonomy Regulation; Hinkley Point C; environmental protection; Euratom Treaty


Applicability of the EU State Aid and Environmental Rules in the Nuclear Energy Sector · Case C‑594/18 P Republic of Austria v Commission ('Hinkley Point')· Annotation by Alicja Sikora journal article

Annotation on the Judgment of the Court of Justice (Grand Chamber) of 22 September 2020 in Case C‑594/18 P Republic of Austria v Commission

Alicja Sikora

European State Aid Law Quarterly, Volume 19 (2020), Issue 4, Page 515 - 520

In its judgment of 22 September 2020 in Case C-594/18 P Austria v Commission (the Hinkley Point judgment), the Court of Justice addressed a number of issues pertaining to the applicability of the EU State aid and environmental rules to the nuclear energy projects under the Euratom Treaty. Although it is not strictly speaking revolutionary for the State aid regime, the Hinkley Point judgment significantly contributes to the wider development of Union law. First, it brings further clarity regarding the links between the Euratom Treaty and the other Treaties on which the Union is founded. Secondly, it addresses a long-standing issue of relationship between the environmental protection and the objective of safeguarding trade and competition within the internal market, even though without bringing a clear-cut definitive answer to all related questions.

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