The European Commission has initiated a detailed probe into the €72.8B French nuclear aid package, examining whether the public funding proposed by France for six new nuclear reactors complies with EU State aid rules. Such in-depth investigations are a routine step in cases involving complex financial structures. The process allows France and other stakeholders to present their views, while making clear that the decision does not indicate any predetermined outcome.
France formally notified the Commission in November 2025 of its intention to back the development and operation of six reactors with a combined capacity of 9,990 Megawatts. These reactors are to be constructed in pairs at existing nuclear facilities located in Penly, Gravelines and Bugey. Commissioning is scheduled between 2038 and 2044, with each unit designed to operate for 60 years. The total construction cost is currently estimated at €72.8 billion. As part of its national energy policy, France has opted to prioritise nuclear energy within its broader energy mix.
The French nuclear aid package is designed to strengthen electricity supply security both domestically and across neighbouring regions, while also supporting the European Union’s decarbonisation goals. The beneficiary, Électricité de France S.A. (‘EDF’), will execute the project through a wholly owned Special Purpose Vehicle. The funding structure includes a subsidised loan covering 60% of construction costs, a two-way contract for difference lasting 40 years to stabilise revenues, and a risk-sharing mechanism addressing events beyond EDF’s control, such as unforeseeable natural disasters and legislative changes.
While the Commission’s preliminary findings acknowledge that the French nuclear aid package is necessary and contributes to economic activity, supply security, and decarbonisation, concerns remain. These include whether the aid measures are proportionate and appropriately balanced, particularly given the multiple mechanisms that reduce financial risk for EDF. The Commission will also evaluate the potential impact on market competition, including whether the package could strengthen EDF’s market position or distort trading conditions.
In addition, the investigation will assess compliance with broader EU legal provisions, notably Article 19d(2) of the Electricity Regulation. The French nuclear aid package will ultimately be judged under Article 107(3)(c) TFEU, which permits State aid under strict conditions, including necessity, proportionality, and limited impact on competition.
