The Association of European Radios (AER) is a Europe-wide trade body representing the interests of approximately 4,500 private/commercial radios stations in eleven EU Member States and Switzerland with millions of daily listeners across the continent. AER welcomes the publication of the Commission’s Green Paper on Services of General Interest in which the role of the broadcast media – public and private – in the functioning of modern democracies is recognized. As it has done in the past, AER would like to continue contributing in the debate concerning services of general interest with the following points.

· No need for a Framework Directive.

AER recognizes the importance of developing high-quality services of general interest in the European Union as a means to ensure the social and territorial cohesion of the Union. However, within the framework of this discussion and in particular in a moment where the EU is enlarging to countries with a strong public service tradition and a fast market liberalisation process, AER is not in favour of the development of a general legal framework instrument at European level setting out common objectives and principles. In AER’s view, this would be an impediment to the liberalisation process, which has so far benefited the development of an increasingly lively, and popular commercial radio sector in Europe. Furthermore, this industry is mostly of a national and regional nature with high levels of regulation at national and/or regional level. The existing legislation is in our view sufficient. Any attempt to develop a regulatory framework at European level for radio broadcasting at this point in time would have no added value and is neither desirable nor necessary.

AER supports the principle that most issues relevant to radio broadcasting as it operates today fall and should continue falling under the primary responsibility of Member States. At EU level, the Telecom-Package New Regulatory Framework (NRF) outlines most of the described sets of obligations regarding electronic communication networks and services, including radio broadcasting. AER agrees that this set of obligations should be swiftly and adequately implemented and enforced by Member States. More generally, AER firmly believes that EC Competition Law should be equally applied to private and public radios with no exceptions. The Commission should be responsible for guaranteeing that public operators meet the objectives required and apply EC Competition rules accordingly, in particular those on State Aid. In addition, AER calls on the European Commission and European Parliament to rigorously and fully enforce the Financial Transparency Directive in all EU Member States as well as provisions regarding State Aid Rules to Public Service Broadcasting. Indeed, the structural and financial complexities of most public broadcasters allow them to enjoy certain benefits such as unchecked State funds, cross-promotions and subsidies, causing unfair competition and market distortions.

· Clarify definitions of the remit of public service broadcasters at national level.

AER respects the role played by public service radio broadcasters, provided that they maintain a commitment to their objectives and remit and do not interfere with the free market and/or abuse their dominant position. This implies the need for clear definitions: first, of the public service remit, the objectives and mission statements of public service broadcasters; second, of the notion of “public service” and “services of general interest (SGIs)” when referring to broadcasting in general and radio broadcasting in particular. Indeed, a dual system (public and private) of broadcasting can function effectively only if there is a clear delimitation of tasks and independent control bodies to ensure compliance. This in turn should help prevent distortion of competition and create a levelplaying field between public and private operators.

· Clarify responsibilities.

As already mentioned, in order to guarantee fair competition within the “dual system comprising public and private broadcasters”, the Commission should ensure that Member States clarify the public service remit of public service radio broadcasters as stated in the 1997 Protocol on Public Broadcasting or “Amsterdam Protocol” and in the Communication on the application of State Aid rules to public service broadcasting.

Regarding the “Amsterdam Protocol”, AER believes that there is no legal purpose in a Protocol on state aid and broadcasting, since existing Commission and Court of Justice practice allows for adequate account to be taken of properly defined public service missions. The Protocol confirms - at political level - that Member States do not want the EU to harmonise in the broadcasting sector as it has done in other public service sectors, preferring to retain competence over the definition and financing. This is not in contradiction, as the Court has confirmed, with the fact that the Commission maintains its powers as regards the application of competition and state aid rules. As already expressed, AER is concerned that the Protocol be interpreted in a way as to create the impression that public broadcasters have a general justification for distorting competition in the media markets. This would seriously undermine the delicate balance achieved between the respect for the role of public broadcasting and the need for a continued  applicability of competition rules in as much as commercial broadcasters play a role in achieving the objectives of the Protocol to the extent that they contribute to pluralism, enrich cultural and political debate and widen the choice of consumers in terms of available programmes.

In AER’s view, the existing regulatory authorities have a major role to play in the provision of services of general interest and in setting the conditions for fair competition. Most Member States have set up such regulatory authorities for most sectors concerned, including radio. Nevertheless, in some instances, the government – the relevant ministry or state secretariat in most cases – still retains its decision-making prerogative over regulatory issues. As a consequence, the existing institutional framework in some EU Member States – as well as in some of the countries joining the EU in 2004 - does not always guarantee an adequate level of independence and impartiality. It is also important to underline that when referring to radio, Member States maintain ownership of public service broadcasters and that in most cases the remits of these broadcasters remain unclear and flexible.

AER considers that the authorities in charge of competition must apply competition rules in a strict and balanced way and ensure that state aid rules are properly enforced. Likewise, National Regulatory Authorities must provide a guarantee of independence at national and regional level in order to ensure an effective implementation of the regulatory environment in which radio operates. This should be done within the framework of clear definitions of the remit of public service broadcasters and obligations of commercial broadcasters.

In AER’s view, the need for a European Regulator is non-existent since radio broadcasting is currently of a regional and national nature and that its trans-national aspects are limited. However, increased sharing of information, know-how and best practice between national regulatory authorities could be useful.