WRITTEN QUESTION P-1073/00

by Gary Titley (PSE) to the Commission

(4 April 2000)

Subject: Euratom loans to the applicant countries

Loans by Euratom to the applicant countries are currently made solely on the basis of improving the safety of their old Soviet-era nuclear power plants, pending their eventual closure.

In a number of applicant countries, however, notably Bulgaria, Lithuania and Slovakia, such a restrictive policy does not take any account of political reality. For these governments, the complete closure of their nuclear power plants raises extremely difficult economic and social issues.

In light of these difficulties, the best way to reconcile social and economic concerns with improved nuclear safety might be to replace old Soviet-design reactors with modern western-designed reactors, incorporating the latest safety technology.

Will the Commission therefore consider widening the criteria for Euratom loans to take account of political reality in the applicant countries and allow the financing of new western-designed reactors?

Answer given by Mrs de Palacio on behalf of the Commission

(8 May 2000)

Council Decision 94/179/Euratom of 21 March 1994 amending Decision 77/270/Euratom, to authorise the Commission to contract Euratom borrowings in order to contribute to the financing required for improving the degree of safety and efficiency of nuclear power stations in certain non-member countries(1) authorises the Commission, within the ceiling set by the Council (currently EUR 4 000m), to contract borrowings in the form of loans for the financing of projects designed solely to improve the safety and efficiency of nuclear power stations in non-member eligible countries, including the applicant countries which produce nuclear electricity.

This Decision also allows the financing of new investment projects, but only where these are located in the Community.

The Decision is based primarily on Article 203 of the Euratom Treaty, which provides that the Council shall act unanimously on a proposal from the Commission after consulting the European Parliament.

The political circumstances would appear not to be conducive to establishing unanimous agreement on extending the eligibility of Euratom loans to new reactors to be built in applicant countries. The Commission will nonetheless analyse the conditions to be met before submitting a proposal along the lines proposed by the Honourable Member.

As far as priorities are concerned, the Commission takes the view that the first problem regarding investment in applicant countries concerns the decommissioning of obsolete (non-modernisable) nuclear installations, as negotiated by the Commission, and nuclear safety upgrading of installations having to remain temporarily in operation. On 18 April 2000, for example, the Commission decided to issue a Euratom loan for the modernisation of units 5 and 6 of the Kozloduy nuclear power station in Bulgaria. However, Euratom loans as such will not be sufficient to modernise installations that have to remain in operation. Applications will need to be made for funding available under the PHARE Programme and to the organisation of donors' conferences (as in the case of the decommissioning of the Ignalina facility in Lithuania).

(1) OJ L 84, 29.3.1994.