The business model for the news media industry in the digital era remains uncertain. But a liberal democracy cannot function properly without an independent and free press. State funding, an increasing trend across the European Union, offers a potential solution to this challenge.

According to the 2024 study Public financing of news media in the EU, there is a clear shift in Europe toward state budget funding and diverse support mechanisms for private media, primarily targeting newspapers.

This trend is driven by several factors, including the financial challenges faced by traditional media due to declining revenues and the need to promote media pluralism to safeguard democracy, as well as urgency to support regional and local journalism, which is vital for community engagement. Additionally, public funding assists media outlets in adapting to digital transformation and ensuring citizens’ access to reliable, high-quality information essential for an informed public debate.

Despite the potential benefits of state funding, there are clear risks. The most obvious is the risk to independence and editorial freedom. Direct financial support from the state can lead to real or perceived government influence over media content, potentially compromising journalistic independence.

Certain countries, such as Spain or Italy, face higher risks concerning media independence and editorial freedom. As the report states, concerns about the independence of private news media sectors are mostly related to politicians exercising their influence on private news companies, interference with editorial decisions, and the content of independent editorial boards. The perception that news media independence is under pressure is frequently expressed in southern Europe. This is due to the characteristics of the Mediterranean journalism system, where there is no clear division between opinion and information, and where the news media tends to align with the political sphere. This leads to a general sentiment of distrust. In countries like Spain and Italy, only 13% of the population thinks that the news media is free from undue political influence, compared to 50% in Finland.

To ensure state funding includes effective safeguards, several countries have developed schemes that could serve as potential best practices.

Countries like France, which gives direct aid to newspapers, have explored various ways to enhance fairness. It’s crucial to implement transparent criteria for subsidy allocation, ensuring that funds are distributed equitably across different types of media outlets. Regular assessments and adjustments of the subsidy mechanisms can help address any disparities and better support media pluralism and independence.

Other countries, like Denmark, offer production grants to news media based on editorial content volume, supporting both print and digital publications. This system promotes media plurality by providing financial assistance irrespective of the distribution platform.

In Sweden, the state provides operational support to daily newspapers facing significant competition, ensuring that multiple news sources remain available to the public. This policy helps maintain a diverse media landscape and prevents market monopolization.

Finally, in Belgium, the government offers project-based support focusing on journalism innovation and the development of new business models. This encourages media outlets to adapt to the digital age and explore sustainable revenue streams.

All these examples show some promise, but the devil is always in the details. 2025 will be the year to follow closely the actual impact of all these measures on the news media, its sustainability and, mostly, its actual independence and freedom.