Energiaklub Climate Policy Institute turns to the Registry Court over Paks II capital increase

The Energiaklub Climate Policy Institute has requested the Registry Court of the Szekszárd Regional Court to conduct a legality supervision procedure concerning the nearly HUF 80 billion capital increase of Paks II Nuclear Power Plant Private Limited Company, registered in December 2025. In Energiaklub’s view, the capital increase may violate EU law as it may constitute State aid, for which the prior EU approval was annulled by the Court of Justice of the European Union in its September 2025 judgment. Under EU law, not only the European Commission but also national courts are duty-bound to act in cases of unlawful State aid – which is why Energiaklub has turned to the Registry Court.

State aid is governed by Articles 107 and 108 of the Treaty on the Functioning of the European Union (TFEU). Due to the primacy of EU law, the Registry Court must examine whether the registered capital increase complies with these provisions. According to the policy institute, State aid for the investment is currently not possible in the absence of the necessary EU approval; following the Court’s ruling, the European Commission must conduct a new procedure.

According to Energiaklub, until EU-level approval is granted, a so-called “standstill” obligation applies. Consequently, State aid would not currently be payable, making the registration of the capital increase potentially unlawful.

The registration documents clearly reveal that the nearly HUF 80 billion capital increase was not intended for general reserve-building, but specifically to settle Russian invoices related to the project’s implementation (EPC) contract. This implies that the Hungarian state financed the project during a period when, following the Court’s judgment, payments should have been suspended (the standstill obligation).

András Kéri, Executive Director of Energiaklub, stated:
“As the Paks II project is likely to consume at least HUF 5,000 billion in public funds, ensuring full compliance with both EU and national law is of fundamental importance, alongside transparency. If the December 2025 capital increase for Paks II was carried out unlawfully, the company would be required to repay it – something it would be unable to do without independent revenue. Ultimately, this would jeopardise the money of Hungarian taxpayers and the national budget. We believe that, in the national interest, the issue of State aid granted to the Paks II project must be clarified before the European Commission reaches a decision, thereby preventing potential and severe financial damage.”

By Founders’ Resolution No. 2/2025 (02.12.2025), Paks II Private Limited Company by Shares carried out a capital increase and requested its registration by the Registry Court, which subsequently registered the increase. In Energiaklub’s view, this registration is unlawful as it conflicts with Article 107 TFEU. The organisation has therefore requested the Court to annul or rectify the entry.

The capital increase was registered on 23 December 2025 and published on 24 December 2025. The source of the funding was the Hungarian State (via the Ministry of Foreign Affairs and Trade). The difference between the subscription price and the nominal value (approx. HUF 79.632 billion) was allocated to the capital reserve, specifically to settle invoices related to the Paks II implementation contract.

Our submission to the Registry Court of the Szekszárd Regional Court (in Hungarian) is available here.