Soul-searching - Cultivating European Identity through State aid to the big and small screens

Abstract: Freedom of expression, including media freedom and pluralism, are at the core of the democratic processes. Media pluralism requires transparency, freedom and diversity in Europe’s media landscape. The broad perception and definition of the terms are based upon the willingness to charge media freedom and pluralism with expectations of very significant and sometimes even unachievable social and political outcomes. The legal basis for the EU’s jurisdiction over media policy stems from articles within the TFEU making it possible to construct policies for various media and communication technology sectors and provide direction on basic features regarding media policy. Cultural policy process, issues and debates are increasingly taking place at a supranational level. This is a necessity arising from the complex nature of media goods and services, which can be defined neither solely as cultural goods nor simply as economic goods. The international dimension of audiovisual policy impacts what happens at EU level and in the Member States. This thesis looks at the changing role and nature of cultural and media policies, together with corresponding regulatory issues in the technologically advanced, liberalised and privatised audiovisual markets in the EU. The background is a discourse, in which culture is integrated in a broader policy agenda dealing with innovation, economic competitiveness and the fostering of a European cohesion policy. Therefore, the thesis looks beyond national cultural policies and focuses on the agenda-setting dynamics at Union level. The Audiovisual sectors is a considerate component of the EU economy in terms of wealth creation and employment. Approximately 3 % of the Union's GDP comes from the sectors, which employs approximately 6 million people. Audiovisual industries also play an important cultural role and has been at the heart of the debate about national cultures and the impact of the expansion of the Union on the sovereignty of the Member States, especially in the television industry, where the EU is a central agent of change. The growth of the EU’s mandate in cultural industries, and subsequent alignment of these industries with Internal Market principles, such as in the audiovisual sector, has not been unproblematic, since historically these industries have been the regulatory responsibility of the Member States. The Treaty rules on State aid control acknowledge the specificities of culture and the economic activities related to it. It is generally accepted that aid is important to sustain European audiovisual production, preserve the Unions cultural heritage and satisfy the Member States’ public service remit. The audiovisual industries change rapidly. The pressure on national and EU governmental bodies to lessen regulatory control on private undertakings and to reduce or cut new initiatives of the public sector is increasing with every year. This thesis examines the EU’s and subsequently, the European Commission’s approach concerning the appraisal of Member States’ aid schemes targeting cultural industries, in particular broadcast audiovisual media, film and television, as this is one of the most challenging policy domains the Union has entered. The thesis investigates the balancing exercise the Union undertakes to address the question of subsidiarity in cultural matters, while weighing the objective of promoting culture against the safeguarding of a free and competitive market. The work considers which effects the enforcement of Internal Market rules have on Member States’ cultural policies, giving special attention to the field of public service television, which continue to rely on public funding, though the monopolies were abolished.