Publications

In January 2014 the Hungarian Government announced that it reached an agreement with the government of Russia about the construction of two new units, which are to replace the current capacity at the Paks nuclear power plant. The project with its approximate volume of 3-4 billion HUF will be the biggest investment in Hungary in the next decade. As agreed the investment will be financed from credit provided by the Russian government.

EXECUTIVE SUMMARY The benefits and damages expected from the Paks II nuclear power plant investment could be studied from various points of view. This summary focuses on the budgetary policy aspects. Experience shows that with cases of such magnitude, normally political interests are also taken into account. At the same time, the EU’s current regulations on statistical accountability that determine the effects of the project on the Maastricht budgetary balance and on public deficit are clear enough to force the state to record the project in the government sector.