EU to let governments fund small local media without Brussels approval

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BRUSSELS — EU countries will be able to fund small local media without asking Brussels for permission, according to a draft of the bloc’s revised state aid rulebook obtained by POLITICO.

Government subsidies to businesses are strictly disciplined by Brussels under state aid rules, but there are exceptions. These are spelled out in frameworks, with the master one, the General Block Exemption Regulation (GBER), up for revision at the end of the year.

The European Commission put out an initial draft for public consultation in February with a view to finalizing it by year’s end. The updated, 200-page draft gives a leg-up to local and independent journalism by allowing governments to fund small- and medium-sized outlets without formal vetting by Brussels.

“SMEs active in the press sector play an essential role in safeguarding media pluralism, cultural and linguistic diversity, democratic participation and citizens’ access to reliable information, particularly at local and regional level,” the Commission writes, highlighting structural challenges arising from the digital transformation of media markets.

To qualify for assistance, beneficiaries would need to fulfil at least one item in a Commission checklist that includes preserving media pluralism and diversity of opinion, transitioning to digital content while also preserving print editions.

“The exemption covers aid pursuing cultural objectives — including linguistic diversity, the digitalization of press publications or the promotion of printed publications,” said Carole Maczkovics, of Counsel at Covington & Burling, of the press measures.

Many European media outlets are struggling to stay viable, with print readership declining and publishers complaining that online platforms, such as search giant Google, are reducing referral traffic to their websites .

Broad scope

The GBER covers most sectors of the economy, from agriculture to transport, and is the target of intense lobbying from EU capitals, traditionally torn between big government spenders led by Germany and smaller member states, including the pro-free-trade Nordics, which complain that national subsidies distort the EU single market.

Countering the stereotype, Denmark was a leading advocate to extend GBER exemptions to the media. In a consultation response last year, the Danes said the state aid framework should be broadened to include private and public media providers “to promote harmonisation and simplify the general management of state aid in the media sector.”

The latest GBER draft focuses strongly on SMEs and innovation, as well as on the social dimension of state aid — as it expands on conditions for money that governments can put in training programs and the inclusion of disadvantaged workers.

But it may not necessarily make things easier.

“Although the revision aims to simplify the State aid framework, it may ultimately make it more detailed and prescriptive,” warned Maczkovics. She added that the Commission’s gradual shift from broad aid categories to narrowly defined exemptions may sway EU countries to design measures that don’t quite fit the real needs of companies — for the sake of avoiding a notification.

Industry, for its part, is keeping a close eye on state aid exemptions, with airport lobby ACI Europe quick to react to the latest leak.

“The revised GBER remains too restrictive for Europe’s smaller regional airports,” said Philippe Sacré, the association’s secretary general. He was referring to aid exemptions that would be restricted to airports handling over 500,000 passengers a year, according to the Commission’s draft.

The Commission’s latest State aid Scoreboard shows that EU countries spent €168.2 billion in state aid in 2024, with Germany, France and Italy the top spenders. Capitals are increasingly taking advantage of block exemptions, with GBER representing close to 70 percent of all active exemption measures.

Tommaso Lecca contributed reporting.