Negotiations are ongoing between the EU and the Government of Hungary concerning the dispute surrounding the supplying of fuel to the proposed Paks 2 nuclear power plant expansion, and we are preparing a satisfactory solution that will guarantee Hungary’s secure fuel supply and enable „the Russians to also supply fuel”.

János Lázár was asked about the topic on Kossuth Radio’s “180 Minutes” programme, following the publication of an article in the Financial Times yesterday claiming that the European Union had stopped the execution of the 12 billion euro agreement concluded with Russia on the expansion and modernisation of the Paks nuclear power plant.

The Minister in charge of the Prime Minister’s Office said on Kossuth Radio that it is not in the EU’s interests to block the Paks project. Hungary needs atomic energy to combat environmental pollution and because it requires cheap energy.

This is also clear to the European Commission, and this is why it consented to the Russian-Hungarian agreement, which consists of several parts, however, one of which, for instance, concerns who will supply fuel to the finished power plant and under what conditions, János Lázár explained.

According to the Minister, intensive negotiations are ongoing between the European Commission and Hungary; some things are acceptable to Euratom, while it is disputing others. For instance, the agency would like others to also supply fuel to the power plant, and for fuel transport to be absolutely secure, he added.

Officials from the Prime Minister’s Office have been holding detailed discussions with Euratom this week and there is a very good chance that all issues will soon be clarified. He himself held talks with the Russian negotiating delegation on Thursday, Mr. Lázár said.

“A solution is in preparation that is both acceptable and reassuring to the European Commission, Russia and Hungary”, he declared.

This solution will on the one hand guarantee that fuel supply will be safe and competitive from Hungary’s perspective, while it will also enable “the Russians to also supply fuel”.

Minister Lázár was also asked about the advertising tax, with regard to which he confirmed that the Government will discuss the observations of the European Commission and put a new recommendation before Parliament next week.

The Cabinet is prepared to propose the reduction of the advertising tax, but it is also important that it should be able to “protect the interests of Hungarian-owned small enterprises”, and this is why the Government is fighting for their tax exempt status, the head of the Prime Minister’s Office said, indicating that this is indeed one of the subjects under discussion with the EU.

Minister Lázár expects the negotiations to come to a close by the end of March.

Another topic of discussion was the application of EU funding, with reference to which the Minister stated that, amongst others, the additional costs of projects, the “trimmings”, such as consultation and tender-writing fees, can in future not exceed 15 percent of the total project value, compared to the previous level of 40-50 percent.

In addition, he repeated that this year would see the completion of the new Public Procurement Act, the aim of which is to make the spending of both EU and domestic funding more transparent and to increase accountability.

(Prime Minister's Office/MTI)