IP/05/458

Brussels, 20th April 2005

State aid: Commission closes inquiries into French, Italian and Spanish public broadcasters following commitments to amend funding systems

Following changes made to the financing of public broadcasters in France, Italy and Spain, the European Commission has closed the existing procedures under EC Treaty state aid rules (Article 88(1)). All three Member States have either accepted or already implemented measures to introduce greater transparency and proportionality in their funding systems, which will help to guard against cross-subsidies for activities not related to public service broadcasting.

Commissioner Kroes commented “This shows the Commission’s balanced approach to the financing of public service broadcasting. The Commission and the Member States have worked side by side to ensure that the central role of public service broadcasting is maintained while avoiding unnecessary market distortions.”

Towards the end of 2003, the Commission issued a preliminary request asking those Member States to implement appropriate measure in respect of their existing financing schemes for their national public broadcasters (see IP/03/1399 and IP/03/1686), measures which the Commission has today formally recommended. These measures reflect the Commission’s general approach as laid down in its 2001 Communication on applying state aid rules to public service broadcasting (see IP/01/1429). In particular, the measures aim to ensure that public and private broadcasters compete on equal terms in commercial markets such as TV advertising. Moreover, financing of public broadcasters should not exceed the strict minimum necessary to ensure the proper execution of the public service mission, should not unduly benefit commercial activities (cross-subsidies) and should be transparent.

In the Spanish case, the Commission also requested that the Spanish authorities eliminate for the future the unlimited guarantee benefiting the public service broadcaster, RTVE, on the basis of which the State has until now been ultimately responsible for the RTVE’s debts.

The Italian authorities have already implemented the Commission’s recommendations in their national law in the course of 2004. The Spanish authorities have implemented some of the recommendations, and they have taken a firm and precise commitment to implement the remaining ones (namely to abolish the unlimited guarantee) by the end of 2005. The French authorities have agreed to the Commission’s recommendations and have committed themselves to implement them within two years as from today. The Commission has taken notice of the changes introduced and of the commitments given by the national authorities, and has closed the procedure.

For further information on how state aid rules apply to public broadcasting, see MEMO/05/73.