EU Probes Billions in French Nuclear Aid

The European Commission, the EU's competition watchdog, is anticipated to launch an investigation next month into a significant state aid package intended for EDF. This scheme, valued at tens of billions of euros, is central to France's ambitious plan to replace its aging nuclear power stations with six new reactors, projected to add around 10 gigawatts of capacity. The first reactor is scheduled for commissioning in 2038, meaning a lengthy EU inquiry could jeopardize this timeline.

France submitted its request for approval of the state support, which includes subsidized loans covering at least half of the construction costs, late last year. EU regulators are reportedly seeking additional time to thoroughly examine this complex undertaking, one of France's largest public projects in recent years. A primary concern for the Commission is that the new plants could further entrench EDF's dominant market share, as the state-owned company already controls over 75% of France's net electricity production.

Sources indicate that bolstering EDF's position might distort competition, potentially preventing other companies from entering the market. Furthermore, an in-depth investigation would enable the Commission to build a robust case should Austria, which opposes nuclear power, decide to legally challenge any approval of the deal, a move some EU officials deem probable. Vienna has a history of contesting state aid for nuclear projects in other countries.