Swiss to vote on package to boost public support for media outlets

Swiss voters will decide on Sunday whether the state should be allowed double state funding for media organisations to compensate them for lost advertising income in the digital era.

Last summer Swiss lawmakers approved a Bill to boost by 111 per cent, to 287million Swiss francs (€272 million), direct and indirect public funding of regional newspapers, private radio and local online media platforms.

Opponents have forced a debate – and a referendum – arguing that the proposal to top up existing state support is less a boost and more the death-knell for diversity of opinion in public debate.

The scheme would boost funding for online outlets, news agencies, journalist training, the Swiss press council and a digital translation fund. The package also extends a 170-year old tradition that gives preferential rates for newspaper and magazine distribution and home delivery.

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The measures, set to expire after seven years, are supported by the Swiss government as a commitment to diverse media as a cornerstone of Swiss democracy and a pushback against an avalanche of online fake news.

Disappearing newspapers

Referendum supporters say more than 70 regional newspapers alone have disappeared in Switzerland in the last 20 years, squeezed by changing habits and the migration of readers – and advertising revenue – to online tech giants.

“Without this package, there is a risk that more newspapers will disappear, that local radio will be weakened, and that certain regions will no longer have news sites,” said Simonetta Sommaruga, Swiss communications minister.

Opponents of the package – who have triggered the referendum under the banner “no tax billions for media millionaires” – estimate that one-third of the funds available will benefit large and profitable media groups with deep pockets while potentially undermining media independence for all.

Led by the right-wing Swiss People’s Party (SVP), opponents criticise as discriminatory a decision to exclude free media outlets, such as handout newspapers.

Independence undermined

“Their financial dependence undermines media independence,” argue the referendum initiators. “The planned subsidies for the media are anti-social. Only the wealthy classes who can afford a newspaper or online subscription will benefit from them.”

Many of those opposed to the new Bill, from largely conservative-liberal circles, tabled and lost a referendum in 2018 to abolish the broadcasting fee that finances Swiss public media organisation SSG/SSR. The new package, which leaves that fee untouched, has attracted the ire too of critics of Covid-19 restrictions as well as virus and vaccination sceptics.

Left-wing groups have come out largely in favour of the proposal, welcoming in particular 30 million francs to finance online media outlets with a local following.

In the run-up to Sunday’s vote, opinion polls suggest initial public support for the media package has melted away, showing a narrow majority against the funding boost.

Other issues up for decision on Sunday include whether to ban all animal testing and whether to impose a ban on cigarette and e-cigarette advertising where children might see it.