In 2012, Parliament had tasked the government with conducting an overall review of the Swiss media landscape and developing a funding concept to strengthen the importance of the media in terms of state and democratic policy. The Federal Council was reluctant: it referred to previous reports and recommended that the industry be given enough time to solve its own problems. It has maintained this stance in the report published on Friday, which fulfills the parliamentary mandate.
Federal Council relies on personal responsibility
It concludes that the media industry is still undergoing profound structural change and that further developments are not foreseeable. The Federal Council identifies media concentration, the eroding economic basis of daily newspapers, competition from online offerings and, as a result, poorer working conditions for media professionals and a loss of quality as the biggest problems. However, it does not see any immediate need for action: the Federal Council wants to give the sector time to overcome these challenges on its own, according to the report. If untested funding approaches were introduced prematurely, this could lead to false incentives. However, as Parliament has called for a funding concept, the Federal Council is proposing various measures to mitigate the consequences of structural change. One of the short-term measures that could be implemented without amending the law is temporary support for the basic service of the Swiss Press Agency sda in French and Italian. The Federal Council does not specify a possible funding amount in the report. It also proposes extending the reduced VAT rate of 2.5 percent, from which print products as well as radio and television currently benefit, to certain online media.
More money for journalism training
According to the Federal Council, support for training and further education could be expanded in order to ensure journalistic quality. The federal government currently spends around one million francs per year on this. According to the report, an additional million could already provide effective support in this area. By retaining indirect press funding, the Federal Council is putting up for discussion a savings proposal that it itself had proposed. The Confederation currently provides CHF 50 million to reduce the cost of delivering newspapers and the membership and foundation press. Although the effect of this measure is controversial, it would be in the interests of media policy to maintain the reduction in delivery costs for the time being. In the medium and long term, according to the Federal Council, online media could also be supported in addition to the radio and television offerings already subsidized today. However, this would require a fundamental debate on the scope and content of the public service in the media sector. Such a debate could also lead to media funding that is independent of genre. However, the Federal Council also points out that a constitutional amendment required for this has already been rejected several times.
Open questions about the foundation
The Federal Council's list of measures is largely in line with the proposals put forward by the Federal Media Commission (FMEC) at the beginning of September. However, the non-governmental foundation for the promotion of the Swiss media, which the FMEC also proposed, is not one of them. According to an expert opinion by the Federal Office of Justice, there is no constitutional basis for this. In addition, the Federal Council writes that fundamental questions would arise regarding the content, mandate, organization and financing of such an institution. The ball is now in Parliament's court. It would be up to Parliament to issue any further mandates to the Federal Council or initiate legislative amendments. The Councillors have so far expressly refrained from issuing a mandate to draw up a specific proposal. However, they will have to deal with one element in the course of next year: The abolition of indirect press subsidies is still part of the consolidation and task review package (KAP) that the Federal Council is proposing to Parliament. (SDA)
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