FILE PHOTO: The logo of the European Court of Justice is pictured outside the main courtroom in Luxembourg January 26, 2017. Picture taken January 26, 2017. REUTERS/Francois Lenoir/File Photo
(Reuters) - The EU Court of Justice should rule in favour of Austria in its appeal against the European Commission's decision to approve Hungary's state aid for the expansion of its Paks atomic plant, the court's adviser said on Thursday.
The court's advocate-general said Austria had been correct in arguing that the Commission should have examined whether the direct award of the construction contract to Russian company Nizhny Novgorod Engineering was compatible with EU procurement rules.
Opinions of the advocate-general are non-binding, but ECJ judges, who are expected to rule on the case in the coming months, typically follow the majority of them.
Austria launched its appeal at the European Union's top court in 2022 after the bloc's second-highest court dismissed Vienna's case.
Austria sued the EU executive in 2018 for its approval of Hungary's plan to build two new reactors at its Paks nuclear site, south of Budapest, with Russian help following Hungarian authorities' promise to take several measures to ensure fair competition.
Advocate-General Laila Medina said the award of the construction contract had been an "inextricable part" of the state aid, which the Commission should have taken into account.
(Reporting by Bart Meijer; Editing by Alexandra Hudson and Gareth Jones)
