WRITTEN QUESTION E-0577/98

by Ernesto Caccavale (UPE) to the Commission

(4 March 1998)

Subject: State aid for RAI - the Italian broadcasting corporation

Under the present arrangements governing Italian broadcasting RAI benefits not only from a compulsory fee paid annually by viewers, but also from money from the State budget.

These subsidies are justified by RAI's alleged "public service" mission.

However, it is not clear either what the scope or the specific purpose of this mission is, or what actual amount of public resources is transferred from RAI's budget to finance them. In the absence of this information, the subsidies would seem to constitute an infringement of Community legislation banning State aids.

RAI operates in a highly competitive market and its programming and advertising methods are similar to those of its closest competitors. Hence the fact that it benefits not only from advertising revenue but also from State subsidies constitutes a serious distortion of competition in this sector. Since there is no transparency and the provision of a public service and purely commercial activities do not feature separately in the accounts, the taxpayer has no way of knowing what proportion of his money ends up funding cultural programmes or those of general interest and what proportion is used to support programmes aimed at increasing advertising revenue.

It would appear that a complaint has been lodged with the Commission concerning the infringement of the rules on State aid and that it has not yet been officially dealt with.

Can the Commission say whether the matter is being investigated or not?

If so, can the Commission ascertain why the procedure is taking so long?

Furthermore, can the Commission take steps to define what is meant by the term "public service" and hence ascertain whether the corporation is fulfilling this task or not?

In view of the situation, does the Commission intend to check whether it actually is a State aid and whether it is considered compatible with the common market withing the meaning of Article 42(3)(c) of the EEC Treaty? If it is, does the Commission intend to exercise its powers under Article 93 of the Treaty and call upon the Italian State to discontinue this aid?

Supplementary answer

given by Mr Van Miert on behalf of the Commission

(28 July 1998)

The Commission can confirm that on 19 June 1996 a complaint against RAI (Radiotelevisione Italiana S.p.A.) concerning breaches of Community law on state aid was lodged with the Commission.

The Commission had already requested the Italian authorities to produce the necessary information for the assessment of the case. The Italian government provided the requested information, but the Commission needs additional information in order to have a more complete picture of the matter.

As similar financing schemes in favour of public broadcasters exist in most Member States, the Commission will adopt a coherent approach to all cases currently under investigation. This will necessarily take into account the Community competition rules, and in particular Articles 90, 92 and 93 of the EC Treaty, as well as the Treaty of Amsterdam, and in particular the new Article 7D and the Protocol on public service in broadcasting.

On the basis of the information received, the Commission will proceed to examine the complaint, coherently with similar cases concerning other Member States.