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160 million euros are missing: will the MDR soon go bankrupt?

2024-04-19T20:20:10.705Z

Highlights: There is a dispute raging over the question of the broadcasting fee. The public broadcasters complain about financing problems. According to a media report, Mitteldeutscher Rundfunk is even threatened with bankruptcy. The million-dollar hole may be even larger if the hoped-for increase in broadcasting fees does not come from 2025. Just this week, Saxony's media minister Oliver Schenk (CDU) confirmed that the broadcasting fee would not increase on January 1st - but, in his opinion, on January 1st, 2027 at the earliest. This raises the question. of whether the MDR will actually go bankrupt. The debate about the amount of the broadcasting fee has been controversial for months. The director of MDR, Ralf Ludwig, said that the station would be missing a good 160 million euros by 2028. The CDU politician also said at the media congress that a new contribution would 'probably' be set from January 1, 2027.



There is a dispute raging over the question of the broadcasting fee. The public broadcasters complain about financing problems. According to a media report, Mitteldeutscher Rundfunk is even threatened with bankruptcy.

Leipzig - The public broadcaster MDR is heading for a million-dollar disaster. As can be seen from an email from director Ralf Ludwig to the broadcasting council and administrative board, the station will be missing a good 160 million euros by 2028. The

Bild

newspaper reported on this this week

. Accordingly, the million-dollar hole may be even larger if the hoped-for increase in broadcasting fees does not come from 2025. Just this week, Saxony's media minister Oliver Schenk (CDU) confirmed that the broadcasting fee would not increase on January 1st - but, in his opinion, on January 1st, 2027 at the earliest. This raises the question of whether the MDR will actually go bankrupt .

Dispute over broadcasting fees: Saxony still considers reserves to be sufficient

At the Media Days Central Germany congress in Leipzig, Oliver Schenk ruled out an increase in the broadcasting fee in Germany from January 1, 2025. To do this, the decision, which must be made unanimously by the federal states, should have been initiated now. We are on a different path and there are no financing problems for public media companies. “There is a very large reserve that can be used to cover this need in 25/26. The current contribution continues,” added the CDU politician.

Schenk said that the regional group now wanted to use the time to push forward reforms at ARD, ZDF and Deutschlandradio. They want to have a proposal developed by autumn. The CDU politician also said at the congress that a new contribution would “probably” be set from January 1, 2027.

The debate about the amount of the broadcasting fee has been controversial for months. The ZDF television council chairwoman Marlehn Thieme said at the media congress addressed to Schenk: “I also find it interesting to risk the open violation of the constitution as minister of state in a federal state.” The director of the MDR, Ralf Ludwig, said in the political direction that he was assuming this that the existing state treaties are binding for the states and that the increase in contributions “must come” by January 1, 2025. 

MDR sets out extensive savings program: job cuts are coming

As the

Bild

report now makes clear, it is almost vital for the MDR that the contributions are increased. Expenses are now 40 million euros more than income, and the deficit can only be made up from reserves by 2025. According to the report, in order to save money, the broadcaster is now planning to cut staff and make do with 284 fewer jobs by the end of 2028. No editors will probably be laid off, but no vacant positions will be filled; Partial retirement should also be promoted.

Further savings should be made in the program: fewer programs should be produced, and savings will also be made on productions for the first time. 18 million euros will be saved on real estate, service and administration.

Is this threatening the MDR with bankruptcy? A spokeswoman for the State Chancellery in Erfurt replies: “This question does not arise because of the financing basis and the financing system of public broadcasting.” If a broadcaster runs into financing difficulties, attempts are usually made to cover the losses within the public broadcasting network to balance. So it is cross-subsidized. Nevertheless, the MDR will have to prepare for tough cuts in the coming years.

Disputes over contribution increases could end up before the Constitutional Court

The Commission for Determining the Financial Requirements of Broadcasting Corporations - KEF for short - is an independent expert committee that recommends the level of broadcasting fees to the federal states after examining the economic plans of ARD, ZDF and Deutschlandradio. The monthly amount is currently 18.36 euros. In February, the KEF recommended an increase of 58 cents to 18.94 euros from 2025. Households and companies in Germany pay the broadcasting fee. Total income in 2022 was around 8.57 billion euros.

The states - first prime ministers and then all state parliaments - decide on the amount of the contribution. You must closely follow the KEF recommendation. A unanimous vote is required to change the height. There have been signs of a conflict for many months, as several country heads had spoken out against an increase. The case could end up before the Federal Constitutional Court. The state of Saxony-Anhalt had already opposed an increase in the previous recalculation. The broadcasters sued, the Federal Constitutional Court ultimately increased the contribution and put Saxony-Anhalt in its place.

With material from dpa

Source: merkur

All news articles on 2024-04-19

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