EU: Exemption for public broadcasters

Among the numerous proposed amendments of the EU Treaty to be considered at the European Summit in Amsterdam in June is one to exempt public broadcasters (radio and television) from EU rules on state aid. In April, the Council of Cultural Ministers agreed to add an Annex to the EU Treaty, exempting MS from Treaty rules governing state aid. If this is confirmed, it would then be left to each MS to decide which method of financing public broadcasters should apply in its territory.

The Association of Commercial Television (ACT) in Europe has criticised this proposed amendment, on the basis that Article 90 of the Treaty already provides for an exemption from state aid rules for public services. In addition, the European Court of Justice (ECJ) has interpreted the exemption very broadly in the public broadcasting field. The ACT argues that special rules only serve to confuse and distort the issue of state funding for public radio and television broadcasters, and that a satisfactory framework already exists to judge whether government funding should be exempted from EU competition rules.

Despite these setbacks and criticisms, the proposal so far looks like being approved at the Amsterdam Summit. However, lobbying by private broadcasters over the next few weeks may tip the balance against it. Commissioner van Miert of DG IV (Competition) has been outspoken in his view that state aid rules need to be made more stringent and transparent.