WRITTEN QUESTION E-3602/98

by Alessandro Danesin (PPE) to the Commission

(3 December 1998)

Subject: Funding of public television networks

Most Member States have objected to the recent Commission (DG IV) guidelines on the funding of public television networks, especially after six private television companies (Telecinco, Mediaset, TF1, VPRT, BSkyB and Sic) reported the public networks of their respective countries to the Commission.

The charge is misuse of State aid and competition with the private networks over advertising revenue. What they are asking the Member States for is a case-by-case analysis and not the adoption of Community guidelines even though the need for greater transparency in the funding of public networks is widely recognised.

A public network is entitled to State aid either in the form of licence fees or advertising revenue but on condition that the money is used to provide a public service, in other words programmes in the public interest. But that does not happen; ultimately public TV is commercial TV to all intents and purposes, and as such ought to be considered in the same way as private TV, especially from the point of view of funding.

Since the EU Treaty includes a protocol to guarantee the role of public broadcasting, and since it is up to the Commission to ensure that the public funding of such services does not alter trading conditions and competition in the Community to an extent that it is contrary to the common interest, does the Commission not think it should quickly take a decision on the adoption of guidelines for the assessment of State aid to public television in the EU?

Answer given by Mr Van Miert on behalf of the Commission

(12 January 1999)

In order to adopt a coherent framework to deal with the various cases of state financing to public broadcasters, the Commission services proposed a a discussion paper to seek the opinions of Member States on the subject. However most of the Member States preferred a case-by-case approach and did not like the idea of guidelines.

Following this opinion of Member States, the Commission will take, within a reasonable time, the necessary action to assess the various complaints lodged by private broadcasters against public broadcasters in some Member States. This is the more necessary since the Court of first instance has condemned the Commission under Article 175 of the EC Treaty for not having adopted a position within due time. This is the first time that this has occurred in the state aid domain.

In its action the Commission will take into proper account the protocol agreed in the context of the draft treaty of Amsterdam that, although not yet in place, represents an important element when assessing cases in the broadcasting sector. Under this protocol, the provisions of the EC Treaty shall be without prejudice to the competence of Member States to provide for the funding of public service broadcasting in so far as such funding is granted to broadcasting organisations for the fulfilment of the public service remit as conferred, defined and organised by each Member State, and that such funding does not affect trading conditions and competition in the Community to an extent which would be contrary to the common interest, while the realisation of the remit of that public service shall be taken into account.