As European broadcasters, ACT is continually looking for ways to support the communities we serve; providing accurate and trusted news and information, bringing people together and delivering quality entertainment. It is in times of deep national and international crisis that the unique qualities of broadcasting are most needed.
Our members are each taking actions to support their own national audiences, including prioritizing news and public health information, broadcasting official recommendations and donation requests, offering additional contents to their subscribers or lowering subscription costs, carrying out technical operations to prevent network congestion…
Regrettably, the role of media as providers of trustworthy reporting on COVID is continuously challenged online. The crisis has once again demonstrated the clear need for regulation of the internet where disinformation, conspiracy and fear campaigns have flourished, threatening to drown out quality news and information.
We face the current crisis in the context of challenges impacting the entire AV value chain. Broadcasters across Europe are not an exception. While TV viewership is experiencing a significant increase as viewers turn to trusted media and entertainment, free-to-air and pay TV players are facing a dramatic drop in advertising revenues (in some markets up to 80% for the month of April) and/or major disruptions in their programming due to the lack of availability of live sports events and delays in delivery of new contents.
Further, the production of all types of programmes is on hold, with some unlikely to resume or facing major financial consequences. This impact will increase as confinement measures are extended and the repercussions will be felt long after the confinement measures end.
In the short term, ACT calls on the European Commission to demonstrate flexibility in the application of state aid rules; in particular recognising the need for Member States to help their own national broadcasters withstand a major drop in revenue. Such measures should include tax credits for advertising investments, a direct stimulus to the entire economy via the promotion of products and services during the recovery.
In addition, the European Commission can directly help, by extending and reorienting the Media Programme to ensure better access for operators most suited to restart productions across Europe. Broadcasters will also struggle to meet the strict and broad financial and content commitments they would perform in normal circumstances. In this regard, the crisis will only aggravate the lack of a level playing field with the digital sphere.
The European Commission in close cooperation with the European Regulators Group for Audiovisual Media Services, should thus develop guidance to enact leniency (such as standstill periods for quota obligations) and liberalization measures to ensure Broadcasters can rebound from the crisis.
While these measures may provide temporary relief, they will not be enough to ensure the long-term sustainability of European broadcasting which was already under threat pre-Covid from largely unfair market conditions in the digital environment. The European Commission, by way of the Digital Services Act, the AV Action Plan and the Democracy Action Plan, has the means to bring structural changes to the digital environment. This means:
- Pro-competitive structural changes to deliver a level playing field and fair competition in the digital sphere, ensuring notably that broadcasters have fair access to the data they generate whilst enabling the vast revenues generated by digital advertising to be redirected to Europe’s creative ecosystem;
- liability rules that ensure Europe’s creative industries’ rights are upheld online, its creations properly protected and valued, and online disinformation properly tackled and sanctioned, and;
- liberalization measures to allow Broadcasters to continue playing their essential role as defenders of cultural diversity, media pluralism and investors in high quality local and national news and jobs.
ACT stands ready to work with European policy-makers and regulators to ensure we adequately assess and respond to the immediate and long-term challenges thereby ensuring the sustainability of this vital national and international resource.
The Association of Commercial Television in Europe represents the interests of 29 leading commercial broadcasters across Europe. The ACT member companies finance, produce, promote and distribute content and services benefiting millions of Europeans across all platforms. At ACT we believe that the healthy and sustainable commercial broadcasting sector has an important role to play in the European economy, society and culture.
Germany wants to use Regeneron's COVID-19 antibody therapy more broadly
Germany would like to use Regeneron’s COVID-19 monoclonal antibody cocktail as a treatment for this disease more broadly but needs to finalize some details on reimbursement, Health Minister Jens Spahn said on Thursday (15 April), writes Caroline Copley.
“The drug is available in Germany, we need it much more and we want it much more and we are working on rolling it out across the nation,” he told a weekly news conference.
President von der Leyen on developments in the Vaccines Strategy
In a press statement on 14 April, President of the European Commission, Ursula von der Leyen, announced an agreement with BioNTech-Pfizer to accelerate the delivery of 50 million vaccine doses to the second quarter of this year, starting this month: “We are in a race against time. The faster we reach our target of having 70% of adults in the European Union vaccinated, the better chances we have of containing the virus. And the good news is: Vaccination is picking up speed across Europe! Member states have received over 126 million doses of vaccines as of yesterday (13 April). And I am happy to say that today we have reached 100 million vaccinations in the EU. This is a milestone that we can be proud of. Of these 100 million vaccinations, more than a quarter are second doses – which means that we have now more than 27 million people fully vaccinated I am pleased to announce that we have reached an agreement with BioNTech-Pfizer to, once again, speed up the delivery of vaccines. 50 million additional doses of BioNTech-Pfizer vaccines will be delivered in quarter 2 of this year, starting in April. This will bring the total doses delivered by BioNTech-Pfizer to 250 million doses in the second quarter. These doses will be distributed pro-rata to the population, among all the member states. This will substantially help consolidate the roll-out of our vaccination campaigns.” As part of preparations for the medium term, the Commission is also entering into a negotiation with BioNTech-Pfizer for a third contract, to foresee the delivery of 1.8 billion doses of vaccine over the period of 2021 to 2023. This contract will entail that not only the production of the vaccines, but also all essential components, will be based in the EU. The President's full statement is available online in English, and French and shortly in German. You can watch it here.
Coronavirus response: Commission proposes to exempt vital goods and services distributed by the EU from VAT in times of crisis
The European Commission has proposed to exempt from Value Added Tax (VAT) goods and services made available by the European Commission, EU bodies and agencies to Member States and citizens during times of crisis. This responds to the experience gained during the course of the Coronavirus pandemic. Among other things, it has shown that the VAT charged on some transactions ends up being a cost factor in procurement operations that strains limited budgets. Therefore, today'sinitiative will maximise the efficiency of EU funds used in the public interest to respond to crises, such as natural disasters and public health emergencies. It will also strengthen EU-level disaster and crisis management bodies, such as those falling under the EU's Health Union and the EU Civil Protection Mechanism.
Once in place, the new measures will allow the Commission and other EU agencies and bodies to import and purchase goods and services VAT-free when those purchases are being distributed during an emergency response in the EU. The recipients might be Member States or third parties, such as national authorities or institutions (for example, a hospital, a national health or disaster response authority). Goods and services covered under the proposed exemption include, for instance:
- Diagnostic tests and testing materials, and laboratory equipment;
- personal protective equipment (PPE) like gloves, respirators, masks, gowns, disinfection products and equipment;
- tents, camp beds, clothing and food;
- search and rescue equipment, sandbags, life jackets and inflatable boats;
- antimicrobials and antibiotics, chemical threat antidotes, treatments for radiation injury, antitoxins, iodine tablets;
- blood products or antibodies;
- radiation measuring devices, and;
- development, production and procurement of necessary products, research and innovation activities, strategic stockpiling of products; pharmaceutical licences, quarantine facilities, clinical trials, disinfection of premises, etc.
Economy Commissioner Paolo Gentiloni said: “The COVID-19 pandemic has taught us that these kinds of crises are multifaceted and have a wide-ranging impact on our societies. A rapid and efficient response is essential, and we need to provide the best response now in order to prepare for the future. Today's proposal supports the EU's goal to react to crises and emergencies in the EU. It will also ensure that the financial impact of EU-level relief efforts to fight the pandemic and support the recovery is maximized.”
The legislative proposal, which will amend the VAT directive, will now be submitted to the European Parliament for its opinion, and to the Council for adoption.
Member States shall adopt and publish, by 30 April 2021 the laws regulations and administrative provisions necessary to comply with this Directive. They shall apply those measures from 1 January 2021.
The Coronavirus pandemic has thrown into sharp light the importance of coherent, decisive and centralised EU-level preparation and response in times of crisis. In the context of the Coronavirus pandemic, the von der Leyen Commission has already outlined plans to strengthen EU preparedness and management for cross-border health threats, and presented the building blocks of a stronger European Health Union. At the same time, the Commission has proposed to strengthen cooperation between EU Member States through the EU Civil Protection Mechanism with the aim of improving responses to future natural or man-made disasters. For instance, in the context of the new European Health Union, the Commission announced the creation of the Health Emergency Response Authority (HERA) to deploy rapidly the most advanced medical and other measures in the event of a health emergency, by covering the whole value chain from conception to distribution and use.
The EU has already taken action in the field of taxation and customs to support the fight against and the recovery from the coronavirus pandemic. In April 2020, the EU agreed to waive customs and VAT charges for imports of masks and other protective equipment needed to fight the pandemic. This waiver remains in place and plans are underway for its extension. In December 2020, EU member states agreed on new measures proposed by the Commission to allow a temporary VAT exemption for vaccines and testing kits being sold to hospitals, doctors and individuals, as well as closely related services. Under the amended Directive, member states can apply either reduced or zero rates to both vaccines and testing kits if they so choose.
COVID-19 response in the field of taxation and customs
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