Controlling the state assistance to the media, or how we will be deceived

In a country in which best media outlets struggle to survive, while the best journalists can barely make a living, any discussion about state assistance to the media and the control over that assistance could be considered humorous. OSCE and the Independent Journalists' Association of Serbia (NUNS) are trying to make things more serious. A few days ago, they organized a seminar about control over the state assistance to the media – including the state-owned media – which should be implemented at the beginning of the new year, according to announcements. Crucially, the seminar demonstrated that it will take many more seminars to examine the situation properly and improve it.

Considering the control over the state assistance, the participants reminded that the European Commission had observed considerable wavering in Serbia. The Law was adopted mid-2009, the Committee tasked with controlling the allocation and expenditure of the state assistance was formed almost a year later, while implementation of the Law in accordance with European standards is planned for the beginning of 2012.

The EC has also noted that the Control Committee, although formed in accordance with European rules, is not sufficiently independent. The Committee is located in the building of the Ministry of Finance, the president of the Committee is the assistant minister of finance, while the Committee uses the logo and the seal of the Ministry of Finance in its written communication.

Imagine the expression on the faces of officials employed in the Ministry of Finance when they were informed about a committee that would control their activities, and imagine their collective sigh of relief when they found out how and where the committee would be established. It should be noted that state financing of public companies, especially the media, has never been controlled in any way, until now.

The head of the media department of the OSCE Mission, Dragana Nikolic Solomon, said that the Ministry of Culture allocates five million euros for the media annually, while the Secretariat for Culture of Vojvodina and local self-governments allocate 3.5 and 16.5 million euros, respectively. These funds have never been labeled as "assistance to the media". They were registered as financing of media outlets and there was nothing controversial about them – the state used to finance its media outlets. Now it remains to be seen whether the state, aside from the controlled assistance to the media, will continue financing "its own" media outlets outside that control.

Dragana Nikolic Solomon added that it was necessary to establish efficient mechanism of control over the state assistance to the media which would prevent the state from influencing the competition in the market by directing the money in accordance with criteria that are not based on the public interest. Recently, the state's Media Strategy declared its commitment to withdrawing from media ownership – which means that the state will not own media outlets – but at the same time announced the intention to establish six more state radio and TV stations in the form of regional public service broadcasters. These new media outlets are supposed to be financed by TV fee, which would be larger than the current one. However, the current TV fee is not being collected to full extent, while at the same time it is insufficient to support the two public service broadcasters that already exist.

The president of NUNS, Vukasin Obradovic, estimates that 40% of the annual media marketing budgets amounting 175 million euros in total is directly or indirectly controlled by the state. He emphasized that the report issued by the Anti-Corruption Council proved that even the personal influence of ministers on the content published by the media was still evident.

He said that Serbia was obliged to harmonize the state assistance with EU regulations in that area as of 2012, in accordance with trade agreements, but at the same time expressed his doubt with regard to effects of such harmonization. "I have no reason to doubt that strict implementation of the Law on Control Over the State Assistance would significantly change the current practice", said Obradovic and added that changes in this area would require "willingness by the government".

The vice president of NUNS, Dragan Janjic, said that allocation of money from the budget to media outlets without clear rules should be abandoned because it disrupts competition in the market, while giving the state a tool that allows it to promote selected media outlets and oppress others. In his words, "a lion's share of the money" intended for assistance to the media is given to state-owned media outlets.

Henrik Selin from the Permanent Representation of Sweden to the EU recommended that Serbian government should begin harmonization with European standards as soon as possible. He said that Brussels expected a completely clear and logical explanation of the public interest that would be the basis for allocation of assistance, while the criteria were extremely strict.

In Serbia, every one employed in the several hundred seemingly privatized or state-owned media is convinced that they should get assistance from the state and that such assistance would be in the interest of the public. On that level, no agreement can be expected. However, if politicians were to decide on the public interest, personal connections and the interest of political parties will be the ultimate criteria, as is the case now. It would be best to ask someone named John Smith or Johann Schmidt to help us and oversee the whole process, at least until we become accustomed to such public interest.

Vlado Mares

About the authors

MC Newsletter,
December 16, 2011