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You can download the
full report 'Introduction to Euratom Loans' in pdf format
here
or word format
here
If you need to download the Acrobat PDF Reader, you can do so here
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After a gap of over a decade, Euratom loans were awarded once again during
2000 for the upgrading and life extension of two VVER 1000 reactors at Kozloduy
and for the completion of two VVER 1000 reactors in Ukraine, Khmelnitsky
2 and Rovno 4. These combined projects cost Euro 893 million. Due to these
projects the Euratom Loan facility is largely spent and for more loans to
be awarded additional funds are required. It is anticipated that a further
2.0 billion Euro will be sought.
Loan Ceiling
In March 1977 the Council of the European Communities agreed on "empowering the
Commission to issue Euratom loans for the purpose of contributing to the financing of nuclear
power stations". Initially, this was restricted to nuclear facilities inside the Union with an
initial credit ceiling of 500 million European units. As funds were used the ceiling was
extended and currently stands at ECU 4 000 million. When agreeing to the latest increase in the
ceiling, the Council stated
"When the total value of the transactions effected reaches ECU 3800 million, the
Commission shall inform the Council, which, acting unanimously on a proposal from the
Commission, shall decide on the fixing of a new amount as soon as possible".
Including the two loans signed in 2000, Euratom has awarded 3 696 million Euros, which is very
close to the trigger at which the Commission must present the Council with a revised request.
Western Contracts
In order to guarantee that Western firms would benefit from Euratom loans, Euratom can only
fund projects where "a major proportion of the capital goods item or service which is to be
financed" it provided by a Community enterprise.
The eligibility criteria for projects for loans are very broad requiring only that the projects have
“received a favourable opinion from the Commission in technical and economic terms,
necessitating reviews of both these aspects. The technical (Safety) analysis is undertaken by
PHARE/TACIS – PHARE the Commissions assistance programs for Central Europe and the CIS
(TACIS) Nuclear Safety Expert Group (NSEG). This body is composed of representatives of
Member States, who give a consensus opinion on the project. The Economic analysis is
undertaken by the Commission who assess projects taking into account a specific
recommendation from the European Investment Bank (EIB) on the Economic and financial
aspects.
The Euratom Loan facility is an outdated and unfair throwback to the 1950s. It was developed to
assist the development of nuclear power within the Union, but is now being used to justify the
development of nuclear power outside Member States. The continual decline of nuclear power
in the EU has resulted in desperation by Western nuclear construction firms for any new business
thus Eastern Europe remains a key market. However, EU funds should not be earmarked to
support these companies, if viable Member States ECAs or the private sector can fund them.
The Commission and Member States must reject any further extension of the Euratom Loan Facility.
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