EU proposes state aid exemption for small media outlets

Small and medium-sized media outlets across the European Union could soon receive government subsidies without their national capitals needing to seek clearance from Brussels. A draft revision of the bloc's state aid rulebook, obtained in its updated form this month, carves out an exemption specifically for press-sector SMEs, arguing they underpin pluralism, democratic participation and access to reliable information at local level.

The rulebook under revision

The General Block Exemption Regulation, known universally as the GBER, is the master framework that determines which categories of government subsidy can proceed without a formal European Commission review. First adopted in 2008 and significantly expanded in 2014, it now covers the majority of state aid measures across the bloc. The Commission published an initial draft for public consultation in February 2026 and intends to finalise the revised text before the end of this year.

The regulation touches virtually every sector, from agriculture to transport to regional investment. Each revision triggers intense lobbying. EU capitals are divided between those, led by Germany, that deploy large subsidy programmes and want maximum flexibility, and smaller member states, particularly the Nordic countries, that see national subsidies as a distortion of the single market. The current draft runs to roughly 200 pages and, despite its simplifying intent, has already drawn criticism from lawyers and industry groups for moving toward narrower, more tightly defined exemption categories.

According to the Commission's most recent State aid Scoreboard, EU governments spent €168.2 billion on state aid in 2024. Germany, France and Italy were the top spenders. Block exemptions under the GBER now account for close to 70 percent of all active exemption measures, a figure that has risen steadily as member states learn to work within the existing categories rather than risk lengthy notification procedures.

A media exemption with conditions

The media provision is among the most eye-catching elements of the new draft. It would allow governments to fund small and medium-sized press outlets without submitting the measures to the Commission for vetting. The Commission's text argues that 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 exemption is not unconditional. Beneficiaries would need to satisfy at least one item on a Commission checklist. The criteria include preserving media pluralism and diversity of opinion, transitioning to digital content while also maintaining print editions, and supporting linguistic diversity. Carole Maczkovics, of counsel at the law firm Covington & Burling, noted that the exemption covers aid pursuing cultural objectives, "including linguistic diversity, the digitalization of press publications or the promotion of printed publications."

The conditions reflect a longstanding tension in EU media policy: how to support a sector that many governments regard as strategically vital without handing publishers a blank cheque or distorting competition between outlets that receive state funds and those that do not. The digital transformation of media markets has intensified that pressure. Print readership continues to decline across the continent, and publishers have grown vocal about the reduction in referral traffic from search engines and social media platforms, arguing that the economics of local journalism have become unsustainable without public support.

Denmark's unlikely role

The push to extend GBER exemptions to the media did not come from a country typically associated with generous state subsidies. Denmark, normally aligned with free-trade positions within the Council, submitted a consultation response last year arguing that 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 Danish position illustrates how the media question cuts across the usual dividing lines in state aid debates. Nordic governments have historically been among the most sceptical about national subsidies, arguing they distort competition and disadvantage firms in smaller economies that cannot afford comparable support. On media, however, even free-trade advocates recognise that market failure is acute. Local outlets across Europe have closed or merged at pace, and the countries that have maintained the healthiest local press ecosystems, notably in Scandinavia, tend to be those with some form of public subsidy or support mechanism already in place.

Simplification that may complicate

For all the talk of simplification, the draft GBER may not make life easier for governments or companies. Maczkovics warned that the Commission's gradual shift from broad aid categories to narrowly defined exemptions could push member states to design measures that fit the exemption criteria rather than the actual needs of the companies they are trying to help, simply to avoid the notification process. "Although the revision aims to simplify the State aid framework, it may ultimately make it more detailed and prescriptive," she said.

The tension is structural. The Commission wants to limit the scope of each exemption to prevent governments from using block exemptions as a shortcut for subsidies that would not survive formal review. Member states want the flexibility to act quickly. The result is a framework that grows more granular with each revision, creating a longer rulebook that is technically simpler to use, provided your programme fits the pre-approved template, but harder to adapt when it does not.

Beyond media: training, inclusion and airports

The media provision is only one part of a much broader revision. The draft places new emphasis on SMEs, innovation and what the Commission describes as the social dimension of state aid. It expands the conditions under which governments can fund training programmes and support the inclusion of disadvantaged workers, reflecting a wider political push to ensure that subsidy policy serves not just industrial competitiveness but also social cohesion.

Not every sector is satisfied. Airport operators have already flagged concerns. Philippe Sacré, secretary general of the airport lobby ACI Europe, said the revised GBER "remains too restrictive for Europe's smaller regional airports." Under the draft, aid exemptions for airports would be limited to those handling more than 500,000 passengers a year, a threshold that would exclude many of the smaller regional facilities that have long relied on government support to maintain routes that commercial operators will not serve profitably.

The airport dispute is a microcosm of the wider debate. Regional airports argue they provide essential connectivity for peripheral communities and that withdrawing state support would leave smaller cities and islands cut off. The Commission's view, consistent with its long-standing approach to aviation, is that subsidies to under-used airports distort competition with rail and other transport modes, and that public money would be better spent elsewhere.

The numbers behind the exemption trend

The rising share of block exemptions in total state aid tells its own story. Close to 70 percent of all active exemption measures in the EU now fall under the GBER, up from a far smaller share a decade ago. The shift reflects both a deliberate Commission strategy to reduce its own administrative burden and a pragmatic response from member states that have learned to design programmes within the existing exemption categories rather than risk delays or rejections through formal notification.

The total volume of state aid has also grown. The €168.2 billion spent in 2024 represents a significant increase from pre-pandemic levels, driven in part by emergency energy support measures and by the expansion of green technology subsidies following the adoption of the EU's Net Zero Industry Act. Germany alone accounts for a disproportionate share of the total, a pattern that has repeatedly drawn complaints from smaller member states about the competitive advantage that deep-pocketed governments can confer on domestic firms.