EU members to fund local media without Brussels' OK

European Union member states will soon have the authority to finance small local media outlets without requiring prior approval from Brussels. This significant shift is detailed in a draft of revised state aid rules that prioritize small and medium-sized enterprises (SMEs), innovation, and social inclusion.

The European Commission, which strictly controls government subsidies to businesses within the EU, is updating its General Block Exemption Regulation (GBER). The updated draft, spanning 200 pages, specifically aims to bolster local and independent journalism by allowing governments to fund smaller media organizations without formal checks from the EU executive.

"SMEs active in the print sector play a crucial role in protecting media pluralism, cultural and linguistic diversity, and citizens' access to reliable information, especially at the local and regional level," the Commission stated. It also highlighted the structural challenges media markets face due to digital transformation.

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SMEs active in the print sector play a crucial role in protecting media pluralism, cultural and linguistic diversity, and citizens' access to reliable information, especially at the local and regional level.

To qualify for state aid, media recipients must meet criteria such as preserving media pluralism, diversity of opinions, and facilitating the transition to digital content while maintaining print editions. Denmark, notably, has been a strong advocate for expanding state aid exemptions to include media providers, arguing for harmonization and simplified state aid management in the sector.

However, some legal experts caution that the revision, while intended to simplify the framework, might ultimately make it more complex and normative. The updated GBER focuses heavily on SMEs and innovation, alongside the social dimension of state aid, expanding conditions for government investment in training programs and worker inclusion.

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Although the aim of the revision is to simplify the state aid framework, it could end up making it more extensive and normative.