On January 29, 2022, the Regulation on Conditions and Criteria for Alignment of State Aid in the Field of Public Information, published in the Official Gazette of RS no. 9/2022 of January 21, 2022 (“the Regulation”), entered into force, specifying the conditions and criteria for alignment of state aid for financing public broadcasting service and production of media contents aimed at realization of public interest in the field of public information, as well as for organization and participation in scientific and thematic conferences, and improvement of professional and ethical standards in the field of public information.

As a reminder, the Law on State Aid Control defines state aid as any actual or potential public expenditure or realized decrease in public revenue granted by the state aid provider in any form, which confers to state aid beneficiary a more favorable market position in respect to the competitors or which provides preference to production of certain goods and/or services, and as a result causes or threatens to cause distortion of the market competition and affects trade between the Republic of Serbia and EU member states.

Application of the Regulation

According to the Regulation, its provisions will not apply to every state aid in the respective field, i.e. they will not apply to the state aid conditioned by the circumstances prescribed by the Regulation (e.g. restriction of state aid beneficiary to use the results of research, development and innovations in the Republic of Serbia).

Alignment of state aid

The Regulation prescribes that state aid in the field of public information is aligned provided that it is granted to market participants that are not in the procedure of recovery of state or de minimis aid, and to the market participants that were not in difficulties (in terms of the Regulation on Conditions and Criteria for Alignment of State Aid for Rehabilitation and Restructuring of Market Participants in Difficulties, published in the Official Gazette of RS no. 62/21) on December 31, 2019.

On the other hand, state aid is always considered non-aligned if it is granted for reality programs in terms of regulations that prescribe protection of minors’ rights in provision of media services, as well as other programs including or possibly including the elements prescribed by the Regulation (e.g. violence).

Criteria for alignment of state aid in the field of public information

According to the Regulation, state aid in the field of public information is aligned if it contributes to the realization of public interest in the field of public information (in accordance with regulations on public information and media, as well as public broadcasting service).

Conditions for state aid alignment

As regards the state aid for financing public broadcasting service, it shall be aligned if the obligation to perform the services of public broadcasting is entrusted under appropriate legal act (whose content is prescribed by the Regulation).

State aid for financing production of media contents in the field of public information shall be aligned if it is granted pursuant to state aid scheme and provided that:

• the measure contributes to realization of public interest in the field of public information;
• there is a need for state intervention, i.e. if the realization of public interest in the field of public information could not be done without granting state aid;
• the amount of state aid is proportionate (reduced to minimum);
• the state aid measure is appropriate;
• state aid has stimulating effect; and
• state aid is transparent, i.e. data on such aid are publicly available.

As a reminder, according to the Law on State Aid Control, state aid scheme is a set of all acts constituting the grounds for state aid granting to beneficiaries which are not previously designated (known), as well as drafts and/or proposals of regulations which will constitute the grounds for state aid granting after their adoption to beneficiaries which are not previously designated (known).

As regards state aid for organisation of and participating in professional scientific and thematic conferences, as well as improvement of professional and ethical standards in the field of public information, it shall also be aligned in case it is granted on basis of state aid scheme.

State aid intensity

State aid intensity is determined on basis of the amount of justified expenditures that state aid is granted for, whereby it must be in accordance with the allowed intensities.

According to the Regulation, allowed state aid intensity shall be:

• up to 50% of justified costs of the projects for production of media content that contributes to realization of public interest in public information for television; and
• up to 80% of justified costs of the projects for production of media content (printed, radio and Internet) of local importance, and which contribute to realisation of public interest in public information.

Allowed state aid intensity for projects of production of media contents whose commercial exploitation has not been foreseen can be up to 100% of justified costs, namely for:

• production of media content designated for socially sensitive groups;
• production of media contents intended for preservation, expression of cultural identity both of the Serbian people and national minorities;
• production of media content that promotes and affirms the topics in the field of science, general education (including media literacy), health education and education related to environmental protection;
• production of media content intended for informing Serbian citizens abroad in Serbian language, as well as Serbian nationals living outside the Republic of Serbia; and
• production of media content intended for presentation of cultural heritage and artistic creation in the country and abroad.

Other provisions

In addition, the Regulation contains a number of other provisions that ensure the means for performance of public broadcasting services, transparency, proportionality, diversification of public broadcasting services, state aid accumulation etc.

The Regulation thus stipulates that state aid for public information is aligned if it has stimulating effect, which means that the request for state aid granting was submitted to the grantor prior to the beginning of project realization.

This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.