🔴ANALYSIS – State Aids, Energy Sovereignty and the Nuclear Renaissance: The European Union put to the test by the EDF Case and States Responses
By François Souty
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lediplomate.media/analysis-s…
Executive Summary
The possible opening of an investigation by the European Commission into the French state’s public support for EDF for the construction of new nuclear reactors raises issues that go beyond the traditional framework of state aid control and European competition policy. It highlights a growing tension between the requirements of the internal market and the imperatives of energy security and sovereignty, in a context of strong geopolitical instability and acceleration of the climate transition.
Faced with the serious risk of significant delays in the implementation of the French nuclear programme, several levers of action can be mobilised. From a legal point of view, France has substantial room for manoeuvre by relying on the exceptions provided for in Article 107 §3 TFEU, in particular those relating to the development of certain economic activities and the achievement of objectives of common interest, such as security of supply and decarbonisation. The qualification of nuclear power as a service of general economic interest is also a structuring axis for framing public compensation mechanisms.
At the same time, the use of the British precedent of Hinkley Point C and the Commission’s recent decision-making practice offers solid arguments in favour of the compatibility of the measures envisaged, in particular if they are designed in a logic of proportionality and limitation of distortions of competition reviewed in the light of geopolitical events.
Beyond the legal register, a proactive political strategy appears to be decisive. It presupposes the creation of broader alliances between Member States in favour of nuclear power, the mobilisation of the European Council and a requalification of the debate at EU level, insisting on the strategic and urgent dimension of energy security.
Finally, controlling the time factor is a central issue: France will have to anticipate the procedure, structure its mechanisms upstream and, if necessary, consider transitional solutions or adaptations to its financing mechanisms in order to limit the delaying effects of an in-depth investigation.
All these actions are part of an integrated approach aimed not at circumventing EU law, but at making full use of its resources in order to reconcile competitive discipline and strategic imperatives. If the search for a rapid consensus with the Commission does not materialise, there will inevitably be other much more aggressive courses of action.
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