AUSTRIA has said it will launch a legal challenge if the European Commission approves plans to build Hinkley C.

The warning comes just a week after it was suggested that the EU Commissioner Joaquin Almunia, who is responsible for ruling on competition, has found in favour of the deal.

The European Commission has been investigating into whether the terms of the subsidy deal struck between energy company EDF and the Government constituted illegal state aid.

A final decision on the £16billion project in Somerset is expected before November 1.

But Austria's minister for Agriculture, Forestry, Environment and Water Management, Andra Rupprechter, told Austria's Kurier newspaper of his anger.

He said: “This scandal has to be fought by all legal means possible.”

He also added that he would apply to the European Court of Justice to have the decision annulled and that he will be doing all he can to change Almunia's mind on the decision.

Austrian Green MEP Michel Reimon told The Telegraph that Mr Almunia had shown “genuflection to the nuclear lobby”.

“It is incredible that Commissioner Almunia will make an exception for the nuclear industry by simply waving [through] this illegal aid,” he added.

A spokesperson for EDF Energy said: “The State Aid investigation has been rigorous, robust and thorough.

“Hinkley Point C is an important project which will deliver Europe-wide objectives, offering the prospect of reliable, secure and low carbon electricity for many decades to come as well as boosting jobs as skills.”

Green MEP for the South West Molly Scott-Cato joined Stop Hinkley protestors at Hinkley Point on Friday to demonstrate against Hinkley C.

She said: “A decision like this demonstrates why so many British people are sceptical about the EU.

“The rules on fair competition are perfectly clear but can apparently be ignored when there is a political deal to be made.

“Agreeing such a huge implicit subsidy for Hinkley will make it impossible for those who generate electricity in a clean and sustainable way to compete”.

Stop Hinkley Campaign spokesperson Allan Jeffrey added: “Irrespective of what we think about the possibility of an accident or routine emissions of radioactivity into the environment, or the fact that there is no solution to dealing with the dangerous waste, this deal is economically bonkers”.