The Paks II Project: Budgetary policy aspects of the investment

Balázs Romhányi

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.
The EU’s regulations on statistical recording and debt reduction underline the fact that the financial burdens of the Paks investment cannot be put on the future generations; they have to be mainly borne by taxpayers and beneficiaries of public funds at the time of the investment. The current debt rate of approximately 80% should be reduced to around 70% by 2024.