Research Site: PAKS

Often referred to as the “Atomic City,” Paks is best known as the city hosting Hungary’s only nuclear power plant. Its first reactor block was put into operation and connected to the national electricity grid in 1983, and the completion of the fourth reactor block in 1987 marked the end of a twenty-year construction process that significantly altered the town’s identity. Once a small, predominantly agricultural community, Paks evolved into a modern industrial center, with its population swelling from thirteen thousand to twenty-one thousand people.

The city’s landscape changed dramatically during this period. Entire housing districts were constructed, including the now iconic Tulip Houses, and the inner city was reshaped by the addition of socialist-realist buildings intended to project a sense of modernity and progress. Initial social tensions between the original residents and newcomers were gradually eased through substantial social and cultural investments. These included the construction of a cultural center, a school, nurseries, a swimming pool, sports facilities, and a gallery—amenities that provided a shared sense of community and an improved quality of life for all. Over time, the nuclear power plant’s presence became naturalized, creating a consensus among residents about the plant’s necessity for Paks’s prosperity.

A new chapter for Paks began on 14 January 2014, when Prime Minister Viktor Orbán announced an agreement with Russian President Vladimir Putin to expand the nuclear power plant with the addition of
two new reactor blocks. This expansion was, in part, a replacement plan as the existing reactor blocks are set to be decommissioned between 2032 and 2037 (though further extensions of their operating life are still under consideration). While many in Paks initially welcomed the project, our research there revealed that the early enthusiasm has faded as it has become apparent that the new investment project, known as Paks II, operates with a special status, and its expected local benefits have become increasingly uncertain.

During a visit to the power plant, we learned that the Paks II project is managed by a separate company, Paks II Zrt., which mostly employs new personnel at higher wages than those working at the existing plant. This division has created a sense of inequality and unease among the original workforce. Adding to the growing discontent, a recent political shift has dealt a significant blow to the city. On 1 August 2024, shortly after municipal elections resulted in an oppositional mayor being elected in Paks, the Hungarian government passed a decree designating the area of the nuclear power plant as a “special economic zone.” This tactic, first introduced in 2020, channels tax revenues and control over large-scale investments away from local municipalities and into the hands of regional authorities, where Hungary’s ruling party Fidesz maintains stronger control. For Paks, this decree represents a major financial setback; the city faces an estimated 37 percent budget cut, severely limiting its financial autonomy and resources. This development has cast uncertainty over the future of Paks and its ability to benefit from the very project that was once seen as vital by the community.