EU Allows Fiscal Rule Exemption for Nuclear Power Investments

The European Union (EU) has decided to include spending related to nuclear power generation in the category of energy investments that are exempt from its fiscal rules. This move is interpreted as a signal that the EU is treating nuclear power as virtually equivalent to renewable energy from the perspective of energy security.

Reuters Yonhap News Agency

According to Bloomberg News on July 8 (local time), the European Commission has presented member states with a list of public investments that can be exempted from fiscal rules, including nuclear power plants, battery storage facilities, hydrogen technology, subsidies for corporate electric vehicles, and rail and subway infrastructure. However, measures such as fuel tax cuts, price caps, fossil fuel subsidies, and household income support programs will not be excluded from the calculation of fiscal deficits.

This proposal follows the European Commission's decision last month to allow member states some leeway from fiscal rules in response to the energy crisis. Under this measure, member states can spend up to 0.3% of GDP on energy-related measures. Such expenditures will not be counted toward the EU's 3% fiscal deficit threshold.

Bloomberg pointed out that this decision gives member states such as France greater room to accelerate nuclear power plant construction and life extension projects, as the related expenses will not be calculated against the country's fiscal objectives.

This decision is seen as a signal that the EU recognizes nuclear power as an energy source that is virtually equivalent to renewables in terms of energy security. Ursula von der Leyen, President of the European Commission, also stated earlier this year that the EU's neglect of nuclear power was a "strategic mistake."

Meanwhile, EU member states differ in their approach to nuclear energy. France and Belgium have a high dependence on nuclear power. In contrast, Germany shut down its last nuclear power plant in 2023, following the phase-out decision made by then-Chancellor Angela Merkel after the 2011 Fukushima nuclear disaster.

This content was produced with the assistance of AI translation services.