Romania and Bulgaria in illegal nuclear state aid accusations

Time and time again the same questions must be asked: if nuclear power is the miracle its industry and supporters say it is, why must the taxpayer pay its bills, why must its public consultations be rigged, and why must it risk breaking the law?

Both the Bulgarian and Romanian governments today find themselves accused offering hundred of millions of euros in illegal state aid to the nuclear industry in violation of the EC Treaty.

In order to build the Cernavoda 3 and 4 reactors, the Romania government announced in August 2008 plans for loan guarantees to the Romanian state utility S.N. Nuclearelectrica for loans totalling 220 million euros, a payment of 350 million euros from the state budget for the provision of heavy water for the Cernavoda nuclear power plant between 2009 and 2012, and 800 million of direct investment from the country’s National Development Fund which is also part of the state budget.

In October last year, the Bulgarian Government announced the allocation of

300 Million Bulgarian Leva (154.5 million euros) from the state budget to state-owned energy group Bulgarian Energy Holding EAD and the National Electric Company (NEK) with the purpose of constructing of a new nuclear power plant at Belene. In December 2008, the Bulgarian Government announced a further allocation of 400 Million Bulgarian Leva (205 million euros) from the state budget for increasing the capital of Bulgarian Energy Holding.

At least the two governments can’t be accused of cover-up on this occasion. They made the announcements in public decrees (Decree 259 in Bulgaria and Decision 643/2007 in Romania).

The allocations of these massive sums favour the countries’ respective nuclear industries and so distort their energy markets. This is where Romania and Bulgaria risk violating the EC Treaty. How are other energy generators expected to compete against such blatant bias? Where are the similar sums for energy efficiency programmes and renewable energy technologies?

The Romanian and Bulgarian governments want to hand massive financial advantages to the nuclear industry in return for what? Certainly not energy security, jobs or meeting carbon emissions targets. Can’t the nuclear industry operate without these massive subsidies? If not, why not, is the question you should be asking yourself. Again.

(More information is available from Greenpeace's European Unit)