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Bogus Safety claims suspected in EU-Romania nuke loan

(Brussels) Friends of the Earth Europe is to ask the European Ombudsman to investigate suspected bogus nuclear safety claims made by the European Commission.

The environmental group announces the move following the Commission's decision today (30 March) to loan Euro 223.5 million towards a new nuclear power plant at Cernavoda in Romania. (Ref. EC press notice IP 397/04).
The formal grounds for the maladministration complaint will be that the Commission has failed to give a detailed justification for its decision, and that key assessment reports on the project have been withheld.

EU law requires that funding of this type must only be "to improve the safety and efficiency" of the projects to which they are given. Loans that do not fulfil this test are no more than back-door subsidies, and so contrary to EU rules on competition.
In 1994, the geographical scope of the Euratom loan facility was changed in order to attempt to assist in reducing the risks from Russian-designed reactors in former Communist countries. As Cernavoda 2 is a Canadian reactor, it should not qualify for a loan.

Friends of the Earth campaigner Mark Johnston said:
"We strongly suspect the stated grounds for making this loan are bogus. The Commission has failed to give a detailed justification for the loan, and has refused access to key reports. We think this is a prima facie case of maladministration, which we will now ask the Ombudsman to investigate.
"Cernavoda 2 is a Western-designed reactor, and so will already be at so-called 'Western standards'. It is the same type as the Cernavoda 1 station, which was completed in 1998 without EU financial support. It appears the Commission is abusing its powers to support the expansion of the nuclear industry, and doing so under false pretences.
"We demand that the Commission does not begin handing over these funds until the Ombudsman has ruled on the case."

ENDS

Contact: Mark Johnston +44 79 7331 9249

NOTES

1. Cernavoda 2 is a half-built 700MW Canadian-designed reactor situated on the River Danube close to the Black Sea. Construction began in the 1980's, but was suspended in 1989 with the fall of the Communist regime. Construction has recently restarted with input from Canada, Italy and France. The EU loan is meant to complete the financing package.

2. The primary legal basis for the Cernavoda loan is the 1957 Euratom treaty, which empowers the Euratom Community (part of the EU) to both promote and regulate the nuclear industry. The 'Euratom Loans' regime was established in 1977, and then amended in 1994 to include certain non-member states such as Romania. This is the third such loan decision since that time.

 

Friends of the Earth Europe campaigns for sustainable and fair societies and for the protection of the environment,
unites more than 30 national organisations with thousands of local groups
and is part of the world's largest grassroots environmental network, Friends of the Earth International.