Economy
Media freedom remains under threat in Hungary - EU Commissioner
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Kroes reminded that this new tax was introduced in Parliament in just a few days, without significant debate or consultation.
“Ostensibly an "advertising tax" to raise revenue, in fact it disproportionately affects one single media company, RTL. Indeed, according to their own calculations, they are the only single company that would face the highest rate of the tax; imposing significant losses and putting in jeopardy their ability to operate," she said.
The Commissioner noted that the conclusion is obvious.
“RTL is one of the few channels in Hungary not simply promoting a pro-Fidesz line; it is hard to see that the goal is anything other than to drive them out of Hungary. The Hungarian Government does not want a neutral, foreign-owned broadcaster in Hungary; it is using an unfair tax to wipe out democratic safeguards, and see off a perceived challenge to its power."“The freedom of establishment is a fundamental principle of the single market," she added, also noting that “it is about more than just one tax or just one company: it is part of a pattern that is deeply worrying; a pattern contrary to the EU's values."
“Taxation cannot be an instrument for discrimination, and tax policy should not be a political weapon" said Kroes.
The Commissioner also noted that Hungary new media law introduced in 2010 put “huge powers over the Hungarian media into a body subject to political interference: breaching the Hungarian constitution and EU law and jeopardising fundamental rights."
She reminded that later on, opposition radio station Klubrádió lost its licence; they eventually got it back, after a complex and costly fight, but the episode revealed(in the words of the European Parliament) "biased and opaque tendering practices".
In 2013, new laws placed restrictions on political advertising. Meanwhile, just last month, the editor of online newspaper ORIGO was dismissed after it uncovered a political scandal; many link his dismissal to political pressure, added Kroes.“Some of these criticisms and concerns have been addressed, under pressure from the EU and the international community. Others remain a very real worry."
Kroes also cited a recent report from the OSCE which showed the impact this is having. It found that, in the run-up to recent elections, the majority of monitored TV channels showed "significant bias" towards ruling party Fidesz; with RTL being one exception. And it highlights an "increasing number of outlets directly owned by businesspeople associated with Fidesz".“The picture it paints is of a media sector that is (at best) uncertain and self-censoring; and at worst partisan if not government-controlled," said Kroes.
“In that environment it is deeply damaging that the government would turn a blind eye: they should be engaging positively to manage threats to media pluralism. The fact is, government control, monopoly and censorship belong to a different, darker, period in Hungary's history: and no one should seek a return to it.
“Fair and unbiased coverage is a principal function of a free and plural media. Undermining that, and attempting to silence dynamic debate, is an attack on Hungarian democracy. For the sake of that democracy, and of the Hungarian people who have fought so hard to enjoy its benefits, we cannot stand by as idle spectators," the Commissioner concluded.
She has also reminded that Hungary is not the only EU country where such concerns and debates exist; these are also issues raised, with different emphases and in different contexts, in Bulgaria, Italy, the UK and others.
“Europe needs to get its own house in order to ensure a free and plural media. There are many proposals out there for how to achieve that - including those set out in the Report of the High Level Group chaired by Vaira Vīķe-Freiberga.
It's time we started taking those ideas seriously, for the sake of our freedom and democratic values."
Ryan Heath, spokesperson for Commissioner Kroes, told a daily press briefing yesterday that the article “doesn’t [...] prejudge any action the Commission may or may not take in relation to the tax that’s recently come into place. But what it does do is highlight the fact that there is a pattern of behaviour in Hungary; it’s a pattern of behaviour that makes it difficult for people to operate freely as journalists and Madame Kroes feels obliged to draw public attention to that issue."
“We’re not trying to change or extend the Commission’s competences which is very limited when it comes to media freedom, but Mrs. Kroes feels strongly about this and wanted to put that on record again in light of the latest developments and that’s why she chose to publish this article today in the Hungarian press and also on her blog," Heath added.
“Ostensibly an "advertising tax" to raise revenue, in fact it disproportionately affects one single media company, RTL. Indeed, according to their own calculations, they are the only single company that would face the highest rate of the tax; imposing significant losses and putting in jeopardy their ability to operate," she said.
The Commissioner noted that the conclusion is obvious.
“RTL is one of the few channels in Hungary not simply promoting a pro-Fidesz line; it is hard to see that the goal is anything other than to drive them out of Hungary. The Hungarian Government does not want a neutral, foreign-owned broadcaster in Hungary; it is using an unfair tax to wipe out democratic safeguards, and see off a perceived challenge to its power."“The freedom of establishment is a fundamental principle of the single market," she added, also noting that “it is about more than just one tax or just one company: it is part of a pattern that is deeply worrying; a pattern contrary to the EU's values."
“Taxation cannot be an instrument for discrimination, and tax policy should not be a political weapon" said Kroes.
The Commissioner also noted that Hungary new media law introduced in 2010 put “huge powers over the Hungarian media into a body subject to political interference: breaching the Hungarian constitution and EU law and jeopardising fundamental rights."
She reminded that later on, opposition radio station Klubrádió lost its licence; they eventually got it back, after a complex and costly fight, but the episode revealed(in the words of the European Parliament) "biased and opaque tendering practices".
In 2013, new laws placed restrictions on political advertising. Meanwhile, just last month, the editor of online newspaper ORIGO was dismissed after it uncovered a political scandal; many link his dismissal to political pressure, added Kroes.“Some of these criticisms and concerns have been addressed, under pressure from the EU and the international community. Others remain a very real worry."
Kroes also cited a recent report from the OSCE which showed the impact this is having. It found that, in the run-up to recent elections, the majority of monitored TV channels showed "significant bias" towards ruling party Fidesz; with RTL being one exception. And it highlights an "increasing number of outlets directly owned by businesspeople associated with Fidesz".“The picture it paints is of a media sector that is (at best) uncertain and self-censoring; and at worst partisan if not government-controlled," said Kroes.
“In that environment it is deeply damaging that the government would turn a blind eye: they should be engaging positively to manage threats to media pluralism. The fact is, government control, monopoly and censorship belong to a different, darker, period in Hungary's history: and no one should seek a return to it.
“Fair and unbiased coverage is a principal function of a free and plural media. Undermining that, and attempting to silence dynamic debate, is an attack on Hungarian democracy. For the sake of that democracy, and of the Hungarian people who have fought so hard to enjoy its benefits, we cannot stand by as idle spectators," the Commissioner concluded.
She has also reminded that Hungary is not the only EU country where such concerns and debates exist; these are also issues raised, with different emphases and in different contexts, in Bulgaria, Italy, the UK and others.
“Europe needs to get its own house in order to ensure a free and plural media. There are many proposals out there for how to achieve that - including those set out in the Report of the High Level Group chaired by Vaira Vīķe-Freiberga.
It's time we started taking those ideas seriously, for the sake of our freedom and democratic values."
Ryan Heath, spokesperson for Commissioner Kroes, told a daily press briefing yesterday that the article “doesn’t [...] prejudge any action the Commission may or may not take in relation to the tax that’s recently come into place. But what it does do is highlight the fact that there is a pattern of behaviour in Hungary; it’s a pattern of behaviour that makes it difficult for people to operate freely as journalists and Madame Kroes feels obliged to draw public attention to that issue."
“We’re not trying to change or extend the Commission’s competences which is very limited when it comes to media freedom, but Mrs. Kroes feels strongly about this and wanted to put that on record again in light of the latest developments and that’s why she chose to publish this article today in the Hungarian press and also on her blog," Heath added.
