European Commission Authorises EUR 2 Billion Aid Package in Support of Nuclear Medicine under European State Aid Rules
- 29/07/2024
- News
On 26 July 2024, the European Commission (the Commission) authorised a EUR 2 billion financing scheme by the Dutch government to support the construction and operation of a nuclear reactor and health centre in Petten, the Netherlands (see, attached Commission press release). The nuclear reactor, called Pallas, will produce medical isotopes as the successor of the existing High Flux Reactor (HFR) which has been one of the global leaders for the production of medical isotopes since 1961 but is expected to be decommissioned around 2030. For its part, the nuclear health centre will convert the medical isotopes produced by the reactor in radiochemicals, which will then be turned into radiopharmaceuticals indicated for both the diagnosis and the treatment of several diseases, including oncological conditions.
Despite the prominent position of HFR in nuclear medicine and the continuation of that role by the Pallas project, the Commission found that the Pallas project would not materialise without substantial public support. In addition, the Commission was also satisfied that the aid would be proportionate as it reflects the minimum necessary to fill a proven funding gap. Lastly, the Commission accepted the safeguards to make sure that the impact of the aid on competition and trade would be minimal. In particular, the firm that will operate Pallas will price its products at a level covering all costs associated with their production and commercialisation in accordance with the Full Cost Recovery principle (FCR). That principle was developed by the Organisation for Economic Co-operation and Development to make the supply chain of nuclear medicine more competitive and economically sustainable. Significantly, the implementation of FCR-compliant prices will be monitored by an independent trustee. All of this led the Commission to conclude that the financing scheme would be compatible with Article 107(3)(c) of the Treaty on the Functioning of the European Union.
