The European Commission concluded Hungary's financial support including state aid for the construction of two new nuclear reactors in (Paks II) in in the central Hungarian area of Paks, the Commission announced on Monday.
"It has approved this support under EU state aid rules on the basis of commitments made by Hungary to limit distortions of competition," the statement read.
"Hungary has decided to invest in the construction of the Paks II nuclear power plant, its right under the EU Treaties. The Commission's role is to ensure that the distortion of competition on the energy market as a result of the state support is limited to a minimum," Margrethe Vestager, Commissioner in charge of competition, quoted as saying.
The Hungarian government has made substantial commitments, which has allowed the Commission to approve the investment under EU state aid rules, according to Vestager.
Hungary plans to grant investment support for the construction of two new reactors on the Paks site in Hungary. Constructed back in 1980s, the country aims to replace the four reactors currently operating on the site.
The four reactors currently account for approximately 50 percent of Hungary's domestic electricity production.
"Hungary considers that the construction of Paks II is necessary to replace phased out generation capacity and to address the need for new capacity," the statement concluded.
By Ebru Sengul