The document summarizes the key aspects of the 2009 European Commission Broadcasting Communication which updated the 2001 rules on state aid for public service broadcasters. It reflects developments since 2001, aims to future-proof the rules, and consolidate case practice. The Communication strengthens transparency and financial control requirements, introduces an ex ante test for new services, clarifies rules on market distortions, and aims to improve legal certainty while balancing public and private media interests.
1. Broadcasting Communication Norbert GAAL DG Competition – State Aid Directorate Information, Communication and Media European Commission Budapest – TVI 09 November 2009
European Commission, DG Competition [Directorate], [Unit]
SAAP Balancing Test In applying the balancing test, the Commission will assess the following questions [1] : 1. Is the aid measure aimed at a well-defined objective of common interest (i.e. does the proposed aid address a market failure or other objective)? 2. Is the aid well designed to deliver the objective of common interest? In particular: a) Is the aid measure an appropriate instrument? b) Is there an incentive effect, i.e. does the aid change the behaviour of firms? c) Is the aid measure proportional, i.e. could the same change in behaviour be obtained with less aid? 3. Are the distortions of competition and the effect on trade limited, so that the overall balance is positive? Broadband Guidelines, at paragraph 35.
